Thats just the trouble Geoff. We the customers have demanded ever cheaper prices which can only be met by reducing quality and outsourcing production to the cheapest bidder. I suppose some of this comes down to reducing prices to get into the DIY market which is HUGE!!
Like you say, if you want a quality piece of kit then you need to pay the money these days.
I believe record powers higher end stuff is still made in the UK, but believe you are correct that their cheaper tools are made in China. However, with their 5 year warranty they must believe they are made to a good spec.
There is a lots of rubbish coming out of china, but they are certainly capable of some great engineering too. Take the Quangsheng planes that Matthew sells over at workshopheaven. He gets them made to his specifications and are a very good product. Trouble is, as they get better and the middle classes expand in China, their prices will have to go up, but that will be good news for British manufacturing as we will become competitive again. It always goes full circle, you just need to be in it for the ride.