Two years ago when I was in the market for a new mower, I e-mailed B&S, Kohler, and some others. At the time B&S told me that all their engines were made in the U.S. except for some of the Vanguard models that were made in Japan. Kohler told me some of their engines were made in the U.S. and some others were made in China. They were also expanding their plant in Yazoo Mississippi to bring some of the work back to the states. Of course this is all before the economy tanked, so things could have changed. The funny thing is all the Honda small engines for the U.S. market are made in North Carolina.
Bottom line on the Honda vs. clone discussion is simple. The design is essentially the same, since the Chinese stole the design from Honda. However, I think it's safe to say the real Hondas are way better engineered and manufactured. Probably better quality materials too. When you buy one it runs as expected. If I were to guess, I'd say the real Honda engines have a new failure rate of a couple of percent, if that. Just from reading on this site, I'd guess the failure rate on new clones is more like 25-30%. Of the four Greyhounds I purchased from Harbor Freight, one wouldn't run at all. There's a reason clones are cheap. The materials are cheap, the labor building them is less than reliable, and QA/QC is all but nonexistant. For cheap fun, it's hard to beat a clone, but if I wanted something I could rely on, I'd pick a Honda.