Ed Hsu is having an identity crisis.

The 37-year-old, American-born Chinese owns two Shanghai branches of Singaporean chain Awfully Chocolate, which he first franchised in 2007. 'My parents went to Taiwan during the war but have these romantic memories of China, so they're confused, which trickled down to me,' he says. 'You come to China, and you're not really Chinese anymore. You go to Taiwan, but they don't consider you Chinese. Then you go to the States, and you're a citizen, but you're not really American.'

Mr. Hsu is one of many foreign-born Chinese now flocking to China