Not exactly correct, one may have products produced there to very high quality if that is a requirement, this approach will save you little with a product that has limited sales in the USA.I would agree. That is also what makes it difficult to make a viable business out of machined parts. Especially if similar parts are already available on a massive scale by China. I was once told by someone that China has become the manufacture of the world. Their bread and butter is pumping out cheap parts at cyclic rates, making cents on the dollar per part. So, there is little hope in competing with that monster because customers only have loyalty to the cheapest seller.
If you can design a $50,000 small lathe that can be manufactured and sold for $4900.00 to the roughly 1000 people that will buy such a thing here in the US you have struck gold, do it, I look forward to the result.