I'm sure China/Taiwan can produce good quality products as well as cheap. Too bad they're mostly known for the cheap stuff because they have super low wage workers who obviously don't put quality first.
If China can produce 26 Olympic gold medals vs US's 14 (by aug 15 noon eastern time), I'm willing to say they can work just as hard if they wanted to. That said, if you're buying a bicycle frame, they probably have some competent workers manufacturing it and I wouldn't worry. It's with that cheap rubik's cube and ralph lauren knockoff that i'd be concerned with quality.