Yep, we have regulated (EPA) and taxed ourselves almost entirely out of the manufacturing business. We have become a nation of consumers and not producers. The next time you're in WalMart just grab anything off any shelf in the store and you have a 90% chance that it'll say "Made in China" on it.... and Wallyworld isn't the only place. Just about everywhere including, God forbid, your local Napa store. Even they carry some parts made by the Chicoms. They ordered a coil for me not long ago and when it arrived the box said "Made in China". I told them I wouldn't accept it so they got me a real Mopar performance parts blue coil. You've got to check everything now days, even our dog's Iams brand canned food was recalled a year or so ago due to tainted wheat purchased from the Chicoms... our neighbor's dog died from it.
Eaton's problem was that they were trying to hide the fact that their compressors were made by the Chicoms. They would have been much better off explaining their quality control requirements and why they insure their compressors are just as good as anyone else's.... but they chose the slimy route instead.