Certainly, good guitars can be made in China, or Indonesia, or Korea. The labor costs are lower overseas, environmental and worker-safety less strict, and the currency manipulation make them even cheaper.
Just like Epiphone, and PRS SE and any number of Fender sub-brands, and many others, production is offshored. Some are pretty good, some are every freaking corner is cut to hit a price.
The truth is that cheap guitars outsell expensive guitars, by quite a lot.
What is the value of the Heritage brand? Is Heritage associated as a USA made instrument brand? Does branding imported guitars with the Heritage brand de-value the brand?
Outside of a small group of guitar nerds, Heritage is kinda unknown. Even among guitar players, I get a lot of "what is that guitar?" about my H535 (it is quite a looker in curly maple natural as well as incredibly good sounding).
Gibson for instance, separates the Gibson and Epiphone lines as generally, USA and offshore brands.
Fender has gone both ways. When CBS sold to private investors in the 1980's, they had no factory for a while. They were building Fender-branded guitars in Japan. (I have one, they were excellent!) They also did Squier brand and some other variants for offshore, and make Fender branded instruments in Japan and Mexico as well as USA.
It just seems weird to me that it is virtually impossible to make electric solid-body guitars in the USA that cost less than $2000