Welcome to the forum Richard! However the production stopped for while, probably because Fujigen factory had departments revamp and its production slows massively between 1989 and early 1990.
Thus, those who could not or did not want to pay what a Fender cost, could buy a quality cheap guitar without having to buy a copy, since it had the backing of the company founded in Fullerton, California.
The frets are so worn that it can't be set up with good action without string buzz.
So yes, today the early Squiers look like they were worldbeating value, but in their day they still lost a hell of a lot of battles to rivals.
However, the way the guitars actually played and sounded was another matter.
Your guitar is almost certainly worthy of a refret and a life long romance! The Fender Contemporary models were manufactured from 1984 to 1987 by FujiGen Gakki and these Stratocasters were designed to be Super strats Super Strat with humbuck ing pickups and Floyd Rose like tremolos made by Schaller and Kahler.
In terms of what went into the guitars, there has probably never been a better deal in the history of Fender.
If all is good and it works for you there is really no need to 'upgrade' anything unless you particularly want to.