If China is such a horrible place, why have hundreds of thousands foreign firms, including major French firms, made astronomical investments there?

Pay close attention to the second paragraph of the following excerpt!

Attractions of China for Foreign Companies 

 China's rate of return on capital---a basic measure if investment efficiency---far outstrips that of most developed nations. Foreign businesses are anxious to move in on China's immense market and take advantage of 1.3 billion person population and its sizable and growing middle class, which for the first time in the country's history, has a large disposable income.

Many businessmen find totalitarianism to be an advantage. There are no labor unions to worry about and elections that might produce an unfriendly government. Incentives offered the government include tax breaks, low import duties, low-cost land and low construction costs for new factories.

 The mix of cheap labor and stable prices and stable politics is what foreign companies find appealing. A Wal-Mart execute told the Washington Post, “There might be places in other parts of the world where you can labor cheaper...If we have to look have at a country that's not politically stable, you might not get your order on time If you deal with a country where the currency fluctuates, everyday here is a lot of risk. China happens to have the right mix."

 In a Time magazine essay John Rothchild, "The future that everybody says will be great for China is a long term one. China will be the economic success story of the 21st century, the way the U.S. was in the 19th, but that doesn't necessarily help investors now. After all, it was foreign capital (mostly British) that built our canals and railroads, but between the scams, panics, recessions and depressions, it was the rare 19th century investor who made any money."