I seem to have a different perspective, a different experience with purchasing economy tools. Many here appear to think there are only two choices: top quality tools, made in the US of Europe and total trash tools made in places like China. And while they will admit that some US made tools are poor quality, they do not credit China and others of being able to make better or even top quality tools.
But this is not really the case. China is capable of making things like automobiles, jet planes, ships, and many more items that require precision. There ARE shops, facilities, companies in China that can do top quality work.
As I see it, YES there are very low quality tools being made in China and then imported to the US and probably other places. This comes from importers here that only know the NAME of a tool and who insist on the lowest possible price. They can be an unemployed HS dropout, living in his parent's house, and working in their basement or garage. He has never been in the same building with a lathe, milling machine, or any of the other machines we use. And wouldn't know one if it fell on him. All he knows is a name and the fact that the item with that name can be made real cheap in China. So he orders them from a Chinese company and then sells them for a nice profit but still a lot cheaper than the US made versions. He has zero quality control and wouldn't know an obvious defect even if he looked at them, which he doesn't.
On the other hand, there are companies in China that can produce top quality tools. And they can probably do it at a cheaper price than any US company can. There are many reasons for that: cost of living in China, no labor unions, few government regulations, etc. The fact is that almost anything can be made for less in China. So, if an importer wants to properly specify a tool. If an importer is willing to pay more than rock bottom. If an importer sets up at least a bare minimum of quality control of the tools they receive. If an importer has a knowledge of how that tool is used. If all of the above is true, then that importer is very likely to have tools of a much higher quality offered for sale here.
AND, there can be importers all across the spectrum from one end to the other. It is not just one end or the other.
In my experience, there are importers that actually do some of perhaps all of the things I outlined above. I have bought tools from some of these importers and can attest to the quality of those tools. Some were OK and some were good. Perhaps actual top quality tools were not present, but their tools were very usable.
Examples:
On importer is Grizzly. I have had the opportunity to observe items that went by the same name and virtually the same listed specifications from Grizzly and from other importers. Twenty inch drill press, round column mill, rotary table, band saw are all examples of this. In virtually every case, the Grizzly tool was the better of the two. Why? Because they probably take more care and they probably pay the Chinese companies more than other, no-name importers do. Their tools certainly have cost me more than those from other importers.
Another that I have purchased some accessory items from is Shars. I recently took some measurements on a set of Shars parallels at the request of someone on another board. While they are not spectacular, they are very usable. I would judge them to be of good quality. The worst case deviation from parallel and equal was less than five tenths and most of them were a lot better than that. Not top quality, but certainly good. I am equally pleased with a pair of Shars milling vises that I purchased. Again, not the very best, but certainly good.
My point is, you can get good items that were made in China. And I said "good", not the very best. But you don't do that by looking for the cheapest price on the internet. I do several things when looking for a good price on a tool.
1. I avoid the low end importers. Some may be OK, but why take the chance. I avoid them. And the well known importers are a lot more likely to stand behind their tools.
2. I don't look for the rock bottom price. I do look at more than one alternative. Some times a catalog from a full line company can show you the range of prices to expect. But then look at other sources. Compare prices and specifications, if you can.
3. I ALWAYS pay with a credit card. Why? Because if there is a problem and the seller does not make it right, I can make a claim with the credit card bank. They do investigate cases of fraud.
My process may take more time. Time which many, in commercial shops, do not have. I DO know this. I also worked for many years and had to purchase many things. So if you just need to spend the money and know you are getting a tool which will work, I DO understand. I just wanted to say it is not all just black and white: there are shades of gray between them. You do what you must.