This is a misconception that has not been the case for several years now. It is simply not true that Chinese labor is so cheap. Maybe 20 years ago, but no longer.
We manage Chinese manufacturing for our clients. We have watched wages increase about 800% over the last 10 years. The typical factory workers in China now makes a reasonable wage that allows him to return home with quite a bundle to start his own business, etc. after a few years in the factories. No - it does not compare with Western rates, but the cost of living in China is still very reasonable, and the factory worker has no living expenses - everything is provided. As part of the job he gets:
40 hour week before being paid overtime
Clothing
Meals
Free Health Care
Free lodging with generous minimum standards for personal space.
Social Security
Unemployment insurance
MANY Holidays
Actually - the cost of labor has risen so much in China that the way that the Chinese manufacturers are now keeping their costs down is to wisely invest very heavily in automation. The Western manufacturers are still fighting this trend. Many electronic items are now manufactured with very little hand labor. Some of the more advanced factories can do it with NO hand labor at all, using robotics from making and testing the PCB to final assembly and packing the product in the box. I have seen car stereos made without a single human touching it until the pallet of boxes is taken away for shipping.
Rondo has hooked up with a good supplier. While there are still many hand operations required for guitars, I am certain that most of the production of the instrument is fully automated from the cutting and shaping of the wood parts to the painting of the bodies and maybe even packing.
The reason now that so many things are made in China is no longer because they have the cheapest labor, but because they have many of the newest, most advanced and highest quality production facilities in the world and can make goods at any price level you order at a competitive price - from Apple products to Nikon cameras and medical equipment - AND in the quantities you require.
Yes - there are still some schlock manufacturers located in some far parts of China, but this is becoming more and more rare and limited to very simple products such as garden furniture, etc.
As the factories become more and more automated and labor becomes a smaller part of the cost, the bigger and smarter companies have found other ways to cut cost. Fender has set up an amazing state-of-the-art factory in Indonesia. Why? It is not for the cheap labor. It's because that is where the wood is! It is cheaper to ship the electronic components from China to the automated factory in Indonesia than to ship huge boatloads of lumber to China. We benefit from this by having incredible Squier guitars at great prices.
Sorry for the rant, but I want to clear up this misconception.
And, BTW, Kurt at Rondo has been nothing short of terrific to deal with.