This should probably be moved to the lounge, but I came across an article that does a rather good job IMO of outlining the current problems and some of the underlying causes.

http://money.usnews.com/money/blogs/alpha-consumer/2009/04/23/explaining-chinas-quality-control-problems

There is some very well made stuff coming from China, but the vast number of sketchy manufactures producing millions of tons of questionable knockoff goods soils the reputation of the rest in that it's hard to trust anything when so much of it falls short.