As was already basically said; China has become a powerhouse in manufacturing. Although many low cost/high volume products that have been sent to China to manufacture have suffered from quality issues, this can be blamed on the overseas company that sent the product there to get manufactured. On the contrary, some of the highest quality and defect free products have been manufactured in China. These products typically tend to be those that were designed and developed by a company with excellent R&D and great products that implemented and executed their quality specs in China.
Although I'll reserve my opinion on outsourcing everything, I think the writing is on the wall for most companies that are tasked with providing a fairly non-proprietary product and are faced with having to deal with any type of competition on price or maximizing margins. In North America and Europe (and other geographic locations), there are many burdens a manufacturing company faces. From high costs of living, to unionized workforces, to a shortage of "skilled" labour in certain circumstances, it's almost impossible to be competitive in a market with more than 1 player.
I could go on and on about how setting up an import tax would sound like a solution, but would actually cripple the economies of both net export and net import countries, but that starts to get off on a tangent...