Having worked a little bit in an office in China, I can tell you that it is extremely hard to fire people there. There are some government mandated minimums for employment that have to be met and as such many companies employ people they don't actually need. If you go into a local KFC, you'll notice half a dozen people standing around waiting to move food off tables into the trash since the government requires KFC to employ minimum amount of people. I saw many examples of outright incompetent and laziness in the workplace and management basically shrugged and said there is nothing they can do about it.