This is more than just a conceptual error though it is a conceptual error as well. Obama was speaking in Colorado and was of course reading from his teleprompter, which said:

I want those manufactured here in C…

And when he saw the “C” which was the first letter of Colorado he just went ahead and interpolated China because he doesn’t really know where he is or what he’s saying. He’s just reading from a script someone else has written. Either that or he’s ignorant and vacant between the ears.