I remember listening to a popular radio personality with a call-in show one night. He was asked by the caller for advise on developing an idea they had for market. They had taken it to a few companies for help with the design and sourcing and they were pushed to go offshore for the manufacturing. They were asking if there were any US companies they could work with or if he thought they should go offshore (basically to China). He went on to explain that with the cost of labor being so low in China, that they were probably best to follow the advice they had received.
I hear this story a lot, it seems many people in our industry are simply farming everything out to China or worse yet India. In one case I even had someone come to us that had hired a Chicago firm for the 3D design of their product. The company in Chicago even farmed out the design work. The final design had come back so bad they were desperate for someone to fix it.
While China, India, and other third world countries may have cheap labor, they may not be the most cost effective place to source products. In fact, unless the product is very labor intensive to make, making it in the USA is probably your best solution. Shipping costs and quality issue can easily drive the cost up higher than the increased labor cost involved with making it domestically. Many times some simple design changes can greatly reduce the labor to make a product.
On top of all this, there is a language barrier that can easily lead to misunderstandings. There are often both a lack of accountability and common deceptive practices to navigate as well. And, there is nothing worse than getting a shipment of defective products and then realizing that getting them replaced will not only take the time to manufacture them but 6 weeks on the water to ship them as well. My advice is keep it here in the states if at all possible.