The price difference is not entirely based on the Country of Origin. When manufacturers choose to have a machine made in Taiwan, it is often because they are intending it to be a better machine, as in features selected, not just build quality. When looking to sell a budget lathe, the vender is almost certainly going to be looking at China. However there are some higher end machines that do get made in China, because the vendors can offer a more featured machine for less than a basic Taiwan machine. The real issue is when looking at budget vendors (Bolton) and assuming all Chinese machines are cheap. When a vendor offers both Chinese and Taiwan made machines, the Taiwan made machines will almost certainly be part of their higher end line, but it does not mean China junk, Taiwan golden.
PM sells several machines that are similar except for origin, but in every case they are different machines beyond where they were made and the Taiwan made tend to have significantly better specs, as well as generally better manufacturing quality.
Precision Matthews sells two 12x36" lathes, the PM1236 made in China and the PM1236T made in Taiwan. The 1236T is $2000 more or about 40% more expensive.
1236 has 18 speeds from 65-1800, the 1236T only 12 speeds with a range of 90-1600.
1236 has a 2hp 240v single phase motor, 1236T is only 1.5hp, but has the option of single phase or 3 phase.
1236 weighs 1250lbs, 1236T weighs 850lbs
1236 has a bed width of 7-1/8", 1236T has a bed width of 7-1/2"
1236 has a spindle bore of 1-1/2", 1236T has a spindle bore of 1-9/16"
1236 is 18" wide and 61" long, 1236T is 29" wide and 66" long
In some areas the 1236 actually appears to be at least a little better (more power, wider speed range), and the 1236T pulls ahead in some areas. Although the 1236T is bigger, the 1236 is 400lbs heavier.
So these two machines are the same size (12x36), but they are clearly not the same machine other than build quality. Digging deeper into the specs there are certainly going to be other places where they differ and help to account for some of that $2000.
Not only is the 1236 cheaper, it comes with more standard stuff adding another wrench to the comparison.