More than one-third of China’s exports come from foreign—mainly Asian—owned factories. The big beneficiaries are Hong Kong and Taiwan. By integrating Chinese factories into production strategies, their companies can compete globally. Factory wages on the mainland—less than $ 1000 a year—are one 10th those in Taiwan. Companies from Hong Kong, a trading port of six million people, now employ more than three million workers in China. For Japanese businesses grappling with the strong yen, China is especially attractive. Japan‘s domestic market is sagging, and yen-based costs are pricing its exports too high. China offers a thriving market and a cheap production base. Nearly one of every 10 yen that Japanese companies invest this year will end up in China, by one estimate.
