While I'll admit I don't know any "people" doing this so maybe it's different but I do know fortune 50 companies and they do NOT own the factories in China. They own 49% hence why they don't give the factories actual understanding 9f products. And when they do it goes bad aka creating their competition. Look at harbor freight and snap ons jack for a example.There are multiple ways around that which is how many people do business in China.
Typically, people set up a trading company that works between the customer abroad and a variety of different factories that actually make stuff. The trading company often has an ownership share in each factory and a set of contracts that effectively give it control over all of the capacity of that factory.
That's just one example.
ILya
Dow chemical in China is a joint venture.