China's drive to promote invention (BBC)

[eppur_se_muova]

By James Reynolds
BBC News, Beijing

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China does not want to make other people's products forever. It plans to start inventing products of its own.
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Since 1999, Chinese spending on research and development has grown by 20% every year.

Hu Jintao has set a research and development target of 2.5% of gross domestic product by 2020.
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The Organisation for Economic Co-operation and Development (OECD) says that China has now overtaken Japan's research and development spending.

In seven years time, China may also overtake the world leader, the United States.
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more: http://news.bbc.co.uk/2/hi/asia-pacific/6912056.stm

Guess they're not going to live off of U.S. interest payments alone. Won't it be fun to watch yet another corner of the world surpass the outsourced, bankrupt U.S.?

[Captain Angry]

1. Makes sense.

We're paying them to do it.

Many US companies just buy products designed in Taiwan. Major computer companies tell system board makers in Asia to make something with a set of specifications. And the companies there design it, build it, test it, and once approved, mass produce it. The only part an American company plays anymore is taking the customer's money.

If you buy a notebook from a major PC vendor, it will be designed, built, configured in China. It will be shipped via UPS, who will deliver it to you. If it breaks, you'll probably call India for help. If you need parts, the tech support company will contact the logistics company they've outsourced their parts to and have them move the parts to your city. Then the onsite support technician that the company has outsourced the work to will go to the parts depot, get it, and install it.

At no time since you paid for the product will you speak to a representative of the company.

If you bought it online, then you just sent them money, and they had no part in the transaction at all.

Now scale that whole process up for everything else. In 2008, Chrysler will begin reselling Chinese cars with the Chrysler logo on them here in the states.

Televisions? Done.
Washing machines? Done.
Golf Clubs?
Bookshelves?
Diamond Rings? Done.

The goal of the business community is to let the labor go where it's cheapest and let American companies cash the check.