Potential dropshipper arguing that their products are indeed handmade, and that they collaborate with artists in different countries

I have requested a refund for an item I purchased, which I believe was from a dropshipper. Following the instructions of the guide posted in FAQ, I stated my concerns that the item shipped from a different state than the store’s location, was associated with a Chinese shipping partner, and was stuck with said shipping partner for 5 days. I concluded that the item was not handmade and instead produced in a factory in China. The seller responded, insisting that the item is indeed handmade, and explaining that they collaborate with artists from different countries to make their products. They have offered to arrange a refund, but I do not think they have initiated or processed it yet. At the end of their message, they asked me to remove or revise my negative review. I wrote back saying they should make clear on both their shop page and product page that artists in other countries are making the products, otherwise customers would be misled into thinking they are buying an American made product. Nowhere on either the shop page or product page does it say they use a production partner. My question is, is this allowed under Etsy rules? I feel like their explanation is a carefully crafted lie to cover up the fact that they are a dropshipper. I also have not received the refund yet, which makes me think they are waiting until I remove or change the review before they initiate it.