Since Deng Xiaoping initiated economic reforms and China transitioned from a planned economy to a market economy, the country has also shifted from an agricultural to an industrial society, with real growth rates of 10 percent annually. Due to low wages, an increasing number of companies, particularly from labor-intensive industries, have relocated their production facilities to China. Nowadays, however, increasingly technologically advanced and higher-quality goods are being produced and even exported. This development contradicts classical trade theory, which posits that China is relatively capital-poor and therefore has a comparative advantage in the production of labor-intensive goods. This book therefore examines the question of why capital-intensive industries are moving to China and what entrepreneurs hope to gain from this.