Adjusted for purchasing power it probably looks even worse for Silicon Valley. How much is an office and a good developer in a big city in China?
I have worked with good crews in China before. You are looking at 8k USD per month for a solid chinese team member. Anything less than that - you will get into language issues, skill breakdowns or copyright theft. You need to factor in extra project management costs (it is more complex than managing a us based project) and time loss due to timezone delays. Ironically, if you add in the location factors good chinese crews cost about the same as a US based worker.