Investment in China has surged, particularly into the booming and reforming metropolis of Shanghai, drawn by a cost-effective workforce and a growing market. But U.S. investors still encounter legal difficulties when establishing, operating, and exiting from a China presence. Hong Kong has recently suffered from high costs and labor skill shortfalls and faces competition from Shanghai to be the leading center of business and finance in "Greater China." This article shows you how to help your company address these changes and reduce taxes through a regional structure of investments and operations by cherry-picking advantages from each city.