My dad's a Chinese immigrant, and I've been to China and had Chinese food there. There are two types of Chinese food you can get in America (well, more given all the regional variations, but I'm making a point...). If you went to a strip mall, walked into a P.F. Chang's, and had General Tso's Chicken, that's not Chinese food. But if you walked into an unmarked doorway in Chinatown, walked down a flight of stairs to a…
The problem is that "Chinese food" as a category is really an enormous oversimplification, and even in China you can go to a place and be disappointed ordering something they don't know how to make. Furthermore, Chinese dish names are essentially the ingredients + main method of preparation, which while unambiguous in Chinese, sound quite mysterious and unappealing when literally translated (e.g, one of my favorite dishes, 'boiled fish'). So ordering in english is kind of a crapshoot.
Therefore, I always feel an obligation to defend the PF Chang's and Panda Expresses of the world when this topic comes up. To someone outside of China, what is Chinese food, other than something Chinese people like to eat? Perhaps it's illustrative to point out that in China, you go to "Western food" restaurants to eat anything perceived as coming from that general direction...
Oh, and there are "nice" restaurants that aren't in the basement too. Chinese immigrants are overall much wealthier than they used to be, and the restaurants that cater to them have gotten more upscale as well. The dingy basement thing has kind of become a second niche in big cities, for adventurous Americans in search of authenticity.