Raspberry Pi manufacturing was being done in China - the only realistic option for the volumes they were thinking of making.
The first change was getting professional distributors involved once the scale of the orders became clear, and now the device will be manfactured in the UK - presumably the volumes now make it economic to do.
That is really good news, the first British made computer for a couple of decades?
http://www.raspberrypi.org/archives/1925
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