When even Old Glory is made in China

Yet at Valley Forge, larger flags are what really matter - not those meant to last only a day or two. "That's not a flag product," Mr. Egervary says. "That's a toy or an entertainment product."

Until recently, the most American flags ever imported in a single year was about 2.5 million, according to government data.

Then came the terrorist attacks of Sept. 11. For all of 2001, nearly 113 million American flags, worth nearly $52 million, were imported. US manufacturers lacked the materials or machines to keep up with demand, and the wait for an American-made flag was often several months.

Since then imports have tapered off drastically. But they haven't disappeared completely, in part because foreign-made flags are considerably cheaper. At united-states-flag.com, a foreign-made, 4-by-6-foot nylon flag sells for $18.95. Its American-made counterpart is priced at $27.50. Overall, says Hickey, foreign-made flags are about 30 percent cheaper.

THAT'S good news for individuals and institutions who are both patriotic and penny-pinching, Hickey says. But for those willing to spend a little more, he adds, the reward is a higher-quality flag that's more than another swath of cloth.

The American flag is a "cultural icon," says Egervary.

Making Old Glory in a foreign country is like sculpting a fifth head for Mount Rushmore overseas and then bolting it to the South Dakota landmark, Hickey says. "Many retailers, and particularly online folks, they treat the flag like any other product...." he says. "Our intention, however, is to indicate that the flag is not just a $7.99 [Web-] traffic-builder that's a piece of junk."

Still, China is fast improving its technology, and with lower labor costs, foreign-made flags will probably remain less expensive than US-made ones. Within a few years, buying American for any reason other than national pride "will be increasingly hard to justify," Hickey says.

While maintaining confidence in their product, companies like Valley Forge recognize the threat of globalization to American manufacturers.

"I wouldn't be so pompous as to say that we don't worry about it," says Egervary, pointing to the recent formation of the Flag Manufacturers Association of America.

Formed just a few weeks ago, the association aims to advance the industry by setting manufacturing standards, FMAA president Robert Waller Jr. states in an e-mail. "These steps, in turn, will educate consumers about the quality, variety, and value of a domestically manufactured United States flag."

In addition to developing a sort of "seal of approval," FMAA aims to ensure that all flags have a prominently located "Made in" label, Egervary says, adding that, if provided with adequate information, people "will make the right choice."

• Li Yan in Beijing contributed to this report.

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