Of course the US still biases towards megacorps who get to do things like distribute dividends taxed at capital gains rates instead of ordinary income like sole proprietorships.
Between a fully capitalist American model or a [fully capitalist in all but the name] Chinese one I chose %he one where I can get a basic level without it just by being a citizen.
I would advise you against going to those smaller factories -- QC is a nightmakre. Problems will arise. When you go to Canton fair or Yiwu for trade shows, I always, always, always recommend you to make a factory visit, and for the first batch, have a reliable Chinese person you trust to fly there and do the QC (if you hire someone that you barely know for QC, the other side might just bribe him off) and you will end up getting garbage when it gets to Long Beach port.