The article shows that companies in China perform better when they match their technology with the local labor market. By studying different regions, researchers found that areas with lower hiring costs attract more companies. This means that where a company is located can affect how well it does. The researchers used data from the manufacturing industry, population numbers, and geography to figure this out. They used a simple method to estimate costs and production technologies in each region. The study highlights the importance of considering local market conditions when making business decisions.