I currently own two Milwaukee tools, one is their top of the line 15 Amp Sawzall which I got new on amazon for $160 earlier this year which I think was a great price. It does not say china anywhere on the label like some of their other tools, it says USA on it. Not "made in USA" just "USA". It works great and I could not be happier with it. I recently used it to cut a branch over 8" thick in diameter off a hickory tree in my back yard. (I don't have a chainsaw at the moment) It got a warm of course but it did not lock up or slow down at all and made the cut pretty quickly considering the tree's hardness...
I also own the new M18 Cordless hammer drill which has been performing over a year beautifully... Again, no complaints at all except that it would be nice if it at least had a bit holder somewhere on the drill and it would also be nice if they included the handle bar with it instead of making you buy it separately... It is made in china...
I agree a lot of stuff from china ***** and breaks easily, and is toxic sometimes...(stinky harbor freight

)? I do believe some products are made well though... not everything is junk.
As far as Milwaukee's warranty is concerned, the 5 year warranty does work. A friend of mine took his cordless sawzall in to a local authorized repair shop last year (the tool was a few years old). He just brought in the original receipt and they fixed it free of charge. The process was very easy. So I feel pretty confident knowing that the 5 year warranty is worth while and that gives me some peace of mind.
I was not all that impressed with his cordless sawzall though... note that this was the previous generation so things may be better now but that one just could not stand up to anywhere near the abuse that my corded one can handle. I highly recommend the 15amp corded one over the cordless if you plan on doing some serious demo work. The corded one may be fine for less demanding tasks and the portability is nice but don't expect it to not lock up or go through batteries fast if making it work hard.
Surely if I had a choice I'd rather buy the USA made power tools but they are becoming fewer and fewer so ya just gotta get what is available. Nevertheless, all in all I am happy with the Milwaukee tools I have and if they keep performing they way they have been so far, I'm pleased, china made or not. As someone else mentioned - milwaukee is a chinese owned company now... so you must have seen the whole shifting to china thing coming...