2. Emotiva and Sunfire have sold $500 valued av product at $1500 namely the DMC1 fully designed and developed by a very nice chinese electronic OEM giant called integrity electronics a division of homni group, this is the same company who is an oem vendor for krell.
This information seems highly suspect. Emotiva's R&D facilities have been visited by innumerable AV reporters and they have personally seen the design work in progress. Most probability Homni would have taken a design by some US/European company and offered it as their own design. One of the Chinese companies's main way of making money is to offer production below costs to cut competition, and then simply aping the design and selling it in the Asian and other markets to make up for the loss. Very few products have succeeded, but most have simply been a poor man's choice of having a duplicate of an expensive brand to show off.
You should read the book Poorly Made in China by Paul Milder. You will then understand that China is nothing more than a sweatshop for electronics. They are years away for having any capability to design high end AV products.
Cheers