Philip the Arab
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Because hand building one single AK at time in a hut without paying American machine operators' hourly rate is cheap. The reason US made AKs suck is because no one state side is willing to spend the money to build a proper forge. I've heard cost estimates in the millions to set up a proper factory. Considering the bulk of Ak sales is going to be full auto military type contracts to the middle east, Africa and so forth, building a full on AK factory state side wouldn't be able to compete with Cugir, Arsenal, and so forth for those contracts, so they would be building that factory just for the U.S. civ market and "we" refuse to think AKs cost over 300 bucks. You can't build an AR15 out of Papier-mâché same as you can't use shitty cast trunnions with a poor hear treatment for Aks.