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nigelITFlag for United States of America

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Exchange 2010 Mailbox Database move

My company has an Exchange 2010 server that has CAS and HUB roles. It holds mailbox database for US users. Another branch of the company is in China. They currently have Exchange 2003 and mailboxes for those users reside at that site.
A VPN ties the two sites together and ALL Internet mail is received through the Exchange 2010 US server. Routing groups are set up to handle Email between the sites.

We have 20 users in the US and approx 20 users in China. I am having trouble providing the users in China with Web and phone mail but local Outlook client work fine in China.
My question is can I just move the China staff (mailboxes) to the mailbox database in the US and retire the Chinese Exchange 2003 server?
This way I will have one 2010 Exchange server more than capable of running 40 mailboxes. I have already converted one Chinese user and that have been fine and now have web and phone mail.
These reason for the concern is latency /performance. A microsoft engineer said this not a good idea !
Any advise would be appreciated
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Manpreet SIngh Khatra
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Rancy and mlongoh. Thanks for your ideas and observations. Both comments contain thoughts I have mulled over but now I think it is probably the way to go.
Thanks for your comments