Based in Hong Kong which is a much lower cost base than US for engineers/designers, and we have a US based remote intern who helps with doing focus groups etc
I moved to Hong Kong as well, though lately I've been in Guangzhou quite a bit.
Hong Kong is actually a great location if you're interested in China. Getting investment visas is not too difficult and living costs are similar to the US. If you're smart, it can be much cheaper.
Trying to startup in China is _very_ difficult. I wouldn't recommend it until you have some experience in the area. As such, Hong Kong is a great place to get started.
If you are going to try Hong Kong, I would suggest getting in touch with an immigration advisor as soon as possible, because you can waste a lot of time otherwise. Also, get in touch with the people at the Hong Kong Startup Association:
Working out ok so far