AUS8 is good enough steel. With Cold Steel’s heat treatment it takes a very fine edge and holds a working edge well enough. It’s also pretty tough for a stainless. People describe it as acting like a stainless carbon steel.
I have the XHP Recon and it’s a good knife. I’m planning on getting the AK-47 when it comes out in XHP next year.
I think that Cold Steel are in the process of switching to American steels, CTS-BD1 and CTS-XHP. The manufacturing will still be done in Taiwan of course. Excellent quality control and lower labour costs than Japan.