There are a lot of really reasonable factories run by reasonable people in Taiwan, which is only communist because they can't seem to break free. There is no shame in buying a product from Taiwan, if an American company isn't filling the niche. You've obviously searched high and low for an option, and if you can't find it, then well, you can't find it. A Taiwanese bike will be fine for him.

Or, if you want, look for used kids bikes, which come up for sale a LOT as kids grow out of them, many are beat up, but some are very lightly used, and you can get a good deal without giving money directly to someone you don't seem to agree with.

peace,
sam