I sometimes buy stuff direct from China through E-Bay, and the quality is not always bad. I just bought a 10 band shortwave radio from Hong Kong for $12 with shipping. It even lets me listen to communist propaganda in English from China, Cuba and Vietnam! Sadly, I can't afford an American one and would never spend the kind of money it would cost to buy one made here as it's just not that important. The sad truth is that even if it is sold by an American company, the circuit board will probably come from Guangzhou, China. An interesting thing I heard on shortwave (On China Radio International) tonight is that the Chinese expect to consume 1/4 of the world's industrial production by 2020, and that most of that is expected to be produced domestically. The sad thing is that I don't know whether it was boastful propaganda, or reality.
The biggest problem is that the Yuan is artificially depressed against other world currencies which makes Chinese manufacturing so cost effective that it is impossible to compete against them. If the Yuan is not allowed to float, and current trade policies remain in place, the trend will continue as it is. The sad thing is that Western economies, especially for the poor, now rely on cheap Chinese labor to produce our technological goods. Take that away, and the technology gap between the rich and poor will become significantly wider. It's not that prices will just go up, it's that consumption will also go down so that the net effect to the lower income classes will be that their quality of life goes down. It is a fine balancing act that will have to be played if the West is to ever wean itself off of Chinese labor without causing harm to it's own people.
Remember too that China is not the only fast developing economy that we trade with, it is just the one that has had the most time to develop it's economic model. We also trade with India, and increasingly with The People's Republic of Vietnam. Vietnam has a fast developing tech industry too, which could become a real player in the next 15-20 years. The biggest reason is infrastructure. In the past, the West went through it's redevelopment in the immediate post-war period after WWII, and it's industries and factories were designed around those models. The same can also be said for the Warsaw Pact nations (USSR, Poland, East Germany, et.al.). Now, those infrastructure investments are no longer valid, and in many cases are old and crumbling. The reality of today is that nations like China, Vietnam and India that are only now industrializing are building the infrastructure needed for today's business environment. To compete, we need to reassess the old models in light of current needs and restructure where needed. If we fail to do so, we will become like so many nations before us, has beens in the history books.
Finally, we have to address Climate Change laws and treaties. Those that are on the books now do not address "developing nations" such as China and India, and only impact the first world countries. This puts the US and Europe at a distinct competitive disadvantage should they choose to adopt agreements such as the Kyoto Protocol. It makes industrial redevelopment too expensive, so the manufacturing gets outsourced to nations that do not have these costs involved with production. Sad to say, but we are all shooting ourselves in the collective feet.