As with many products made in China by US companies, the real added value ($) comes from the US. That includes design, marketing, finance and distribution. The manufacture of a product is not always the largest part of the value of the product. As to the Senators getting huffy about this, I hope when they do they don't carry their Apple products, Blackberries, Dell products etc. As the the US Team, shall we say no to the BMW, Panasonic, Sony and Atos sponsorship? Maybe it is time to read Thomas Friedman's "The World is Flat".
With regard to tax and government policy, with no taxes and no government requirements/restrictions what so ever, one still can't make a T shirt as cheaply as in China...which, BTW, is now going to lose manufacturing to some South Asian countries who can produce cheaper than China.