my friend (chinese-american) has a iOS app company that contracts Chinese devs. he has a small team in the US that does gfx design, sw management and marketing

my friend (chinese-american) has a iOS app company that contracts Chinese devs. he has a small team in the US that does gfx design, sw management and marketing. all the coding is done in china by 5-8 devs on contract who knows some english. since he knows Chinese and has Chinese speaking managers they can make it work. he calls it software development arbitrage and he expects it accelerate in the next decade. they are alot of smart and capable sw devs in 3rd world countries that are willing to code for $5-10/hour