Well I'm late to this thread but it is not a new one, at least in conversations I've heard.
To me, it's not so much that I walk into Wal-Mart and find that something I want to buy is made in China. It's that there's no CHOICE of buying something identical, made somewhere else!
Not only that, but many of the Chinese-made products I have bought have turned out to be just plain shoddy. A couple of generations ago, Made in Japan was awful. Then it was Made in Hong Kong. (That's China now, folks.)
Now I see things like Engineered in Japan, assembled in China. It's obvious companies see the reputation issue.
Anyway - I am not an economist and have not taken a single course on it nor have I read a book about it. But from a gut-level US citizen feeling, I believe that this is an important point: if the person making product X can afford to buy product X on his salary, he will probably take more care in making product X.
This is the reason I bought a Taylor acoustic guitar, made in California, partly because I read the reviews and heard the SOUNDS OF WOOD AND STEEL compact disc, but partly because I knew some poor chap in Fuzhou making a plywood guitar probably could never afford to buy one, and probably has to crank out five per hour...
(The Taylor was just sold to a happy buyer...the 1-3/4 nut meant I could actually play chords but I want to concentrate on bass only, at least until I can learn what the heck four strings do.
Model 310...beautiful...their low end model at the time I bought it in 2001.)
Another thing: though it's great that Nissan employs all those Tennesseeans, how much of the money being made from the cars is then being reinvested in US businesses? There's more to having a business in the US than paying a workforce, at least on a moral level.
I would much rather pay $40 for a pair of jeans made with care in the USA than $15 for a similar pair made sloppily in China.
I think the real issue is with quality. Anyone here on this website obviously knows quality! It was not that long ago that a Japanese camera (vs. a US or German one) was a piece of junk. I expect that we will eventually see China's reputation for quality products improving. But at the same time, there's an emotional resistance to this, when I see local jobs being outsourced, and manufacturing plants closing. Reeducate the production workers? As what? Wal Mart associates? And if they go to engineering school, will there be US design companies left for them to go after graduation?

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It's a mess at times. The human race will survive. The US will not be top dog for the next 500 years, surely. A hard lesson to learn.
As Hollis said, we're all in this together. I keep waiting for the aliens to land and find us good to eat. ;-)
EffClef
PS I also think the one art which can transcend all borders, all languages, and all differences we humans separate ourselves with is MUSIC.