The main problem for me is that the different price categories don't all make it to the West. I don't mind getting the $1 crap version when I am paying $1 for it, and often I would happily pay $10 for the not-complete-crap version.

But when those items arrive on Amazon the $1 crap gets sold for $9, and the $10 is completely absent because people think it is a ripoff compared to the "$9" one.

Another problem I've heard is there is absolutely no legal protection. If you outsource your manufacturing to Shenzhen, you get what you get and there is no suing them later.