That is why I don't buy logo goods such as that anymore. I'm not paying a lot of money for anything made in china. Notice I said A LOT meaning I think big companies are taking advantage of chinese labor and are more concerned about making more profit above all else. While they're sitting back and laughing that they can sell some canvas and a bit of leather for 600 which materials probably accounted for a small percentage, they are making major profit. They are luxury brands for a reason and they are making MAJOR profit off people so they least they can do is make their bags in other places beside china. But the bottom line unfortunately for companies is just profit, not much else. You can't say they bag companies are going broke. In fact, they're just raising prices higher and that doesn't exactly mean quality with all the defects I read about in major brands such as chanel (links), etc.
As for cheap stuff from china? At least they're honest about it and aren't making major gains as handbag companies are. Although I know I don't have a zero percent home free of china goods, I can say when I have a choice between two options I pick the one made in another country.