How can Dealextreme, Focalprice...ect offer free shipping worldwide?

There are so many China dropshippy cheap #$%^ companies out there that all have free shipping worldwide. I have bought an item for 35c and it was free shipping worldwide. I dont understand how they can offer free shipping to every country in the world.

Like what the hell, do all the companies have like some sneaking insider asain working at HK Post smuggling packages in his trousers and throwing them onto the assembly line when no one is looking?

How can they afford free shipping?

They have obviously lost money on the deal with you.
On other (more expensive items) they just add the shipping to the price of the product.

You can actually ship products very cheap from China, if you know who to use as agent. There is a limit of 2kg though.