The why do they need H1Bs? They clearly want the best of both worlds. Cheap labor in their time zone. H1Bs obviously increase the skilled labor supply. If the laws of supply and demand are true, the price of labor will fall as supply rises.

I work in an international company where that is absolutely not the case.

India and China development is limited for regulatory reasons, but we do employ as many people there as possible.

I did not say all but "most" do :)