This article seems a bit biased. They talk about "contract manufacturers", and then say it's a bad thing... But a lot of companies do this. Usually smaller companies that either can't yet afford to run their own factory, or don't have enough orders to warrent a factory at all. (in such case, it may still be made in house, in someone's garage.)
This is just basics of business. Only the big companies can really afford to buy or rent their own factory.
Also, this article says such products are "not pet tested"... Based on zero evidence.
Lastly, this post comes from a blogspot. Whilst genuine articles can come from anywhere, blogs that any random person (or bot) can create should be taken with a grain of salt.