I like the way China is, I think it well represents the state of Chinese forces and idustry at that time. Mind you, by the time this game begins, all of Chinas more developed and industrilzed areas are under Japanese occupation.
What I could see someone doing is making a house rule where if China takes its costal areas back, or recaptures Kiangsu, its allowed to place a minor industry there for free (which it could upgrade to a major) and can function as a regular nation, purchasing and moving normaly. I know it sounds extream, but If China gets to that point, the game is pretty much over for Japan anyway