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Things that are made in China do not have to be low quality, but I think designer/luxury consumers are slightly suspicious about "made in China" tags. It's true that we've already seen stuff made in Eastern Europe, Turkey, Tunisia and so on without any real reaction, so maybe a move to China will go as smoothly? I don't think it will go as unnoticed though, because it's on such a large scale. At least that's the impression I have.
And if companies don't keep a tight quality control, this could really come back and bite them in the a**es...
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