Without going down the rabbit hole too much, but it's because of a lot of reasons. One of those is that American workers want to be paid livable wages. It's a craft that requires skill (learned) and ability (natural talents). That costs money. China has a much larger labor pool to tap into and has an artificially devalued currency to make it even more inviting for offshore investments in manufacturing. Compound this with investment in high technology that does not require the laborious handfitting of generations past, and you end up with a very nice knife at a substantial savings.
Taking the big bad communist boogeyman out of the equation, it works out well for a lot of people from a purely capitalist point of view. The US manufacturer can produce high quality product at an affordable price. The Chinese worker finds themselves in good, steady work. The knife buyer spends less money for comparable quality. Manufacturer=Worker=
Buyer= Happy. Divorced from politics, that's successful capitalism.
Wait, that doesn't seem full on fair, right? Capitalism shouldn't be so black and white. What about the American worker? What about the manufacturer who either produces stateside or is now competing with a reputable Chinese competitor or worse a Chinese competitor who uses gray market tactics to counter compete with the US manufacturers designs? Well, now we have stumbled upon on one of the reasons for those "evil" MAP policies everyone likes to growl "Let the market decide!" through frothy gritted teeth.
It's a global economy. History has proven that isolation to globalism works against economic growth. China is top dog in manufacturing because they have lots of capital in the forms of LOTS of workers and a government that will stack the deck to retain what they can. The thing is that its not sustainable forever. Chinese wages are going up. Chinese standards of living are increasing. Devaluing the currency isn't working and the country has shown the worst growth period in over a decade. At some point, the market WILL decide.
That said, I'm about quality. I buy a lot of ZT knives. That's not so much because of their county of origin but because they cost a lot of money and I can handle them locally first before I buy. I have NO problem with a Chinese Spyderco. I will also say that much of Boker's Chinese line is comparable if not superior to their German stuff. So for me, it's not about price. If a particular item is made better in China than in Connecticut, I'm going to by the Chinese version. A price savings is just gravy. I'm not in this hobby to save money.
That was refreshing to read. Thank you.