Having some experience with the Chinese contract mfg business from fishing tackle, there are a few points worth adding to this thread:
The employee turnover in Chinese factories is incredible. It's not uncommon for workers to be seasonal, save up their money and then take it home to their families when planting time comes, etc. For every production run of a product, there could be a large percentage of the workers for whom this is their first time working on that particular product. That includes managers and QC people. For any product that requires hand work (other than mere assembling), this can turn into a nightmare real fast, a nightmare for which there is no permanent solution. You get your shipment in and the first hing you do is inspect it to find out what they screwed up this time. It's a moving target. What one crew got right this time, the next crew will screw that up on the next run.
Next is the company that is contracting with the Chinese mfr. Often they'll tell the mfr "we need this made for so-and-so price and no more." The Chinese mfr will figure out how to get the product out for that price no matter what they have to skimp on. A company willing to pay more gets less skimping on their item, even if the overall design is the same.
Think they can't make good stuff? Don't they make planes, ships, spacecraft, mining equipment, etc?? And quality tools to turn all those nuts, bolts and screws? "We can make this, but crazy American round-eyes want that **** instead."
Plus they're not stupid either. Some US companies are more lax with incompetent quality control people or lacking proper checks and balances to make sure they're doing their jobs. The Chinese mfr quickly learns who will accept **** more readily. I suspect Sears has this problem in their corporate structure.
Typically, there are only a handful of Chinese mfrs at work in each kind of product category. It's not uncommon as an example for every Chinese computer flat screen monitor in the world to be all made by two or three companies regardless to the brand name. So the similarities you see in different brand name tools that are coming from China is no co-incidence. They are most likely being made in the same factories.
Sometimes the mfrs will be the ones to sell the US company on a particular design. "We make this part for Company A. Do you like it? We can put that same part in your product too." It's far more common for a US company to say to the China mfr "We need a ratchet of this approximate style at this price" and the mfr actually designs the product rather than the US company actually designing and engineering it and then putting it out on bid. The US company only knows what the Chinese came up with after they receive the first samples for approval. This is also how a lot of these products come out looking the same.
Which is another problem. The Chinese will go through a production run and hand-pick the best examples off the line to send the US company for approval. The US company approves the seeded examples, and then they get shipped all the ****. It's true.
And they know they have you by the nuts because no one will make it cheaper and there's only a couple options for you're product over there. Get it made by tweedle-dum or tweedle-dee. Same difference.
Oftentimes a mfr of supplies for the main mfr (the glass panels for monitors or the circuitry for computer motherboards) are family members. Even competing factories for a given product category can be family members to one another too.
What makes it hard sometimes to understand what's going on with these factories is that the mfr business in China is so very different in their thinking and philosophy than that in the USA.
Stupid round-eyes.