I think the whole fiasco about labor regulation is as misinformed as most other issues about other countries are presented in the US. China's labor protection isn't ideal. However, the US has its own share of failures when it comes to labor protection.

China arguable has better protection when it comes to mandatory severence pay and most workers don't work by the hours, or depend on the tips to survive. On the other hand, China don't have hyper-active unions, overtime limits are not strictly enforced. However, I remember reading a piece about a janitor in San Francisco who worked so many hours he's getting paid more than a regular programmer. So when it comes to that, regulations can't do much when someone's determined to get that overtime .

The core thing is, however, a lot more Chinese workers are willing to work that overtime and get that extra pay without complains, and the cost of living is simply way lower.

For an outsider, $15 per hour in the bay may seem high, but even if you work the full hours, you can save very little after housing and food. However, those workers in China are housed, fed, and they get to save all that they get.