China has already for a long time been the “manufacturer of the
world,” producing everything from toys to cars and computers.
Almost all major companies from the European Union, the United
States and Japan have established production plants in China.
Chinese exports are strongly linked to exports by China-based foreign
or foreign-Chinese joint venture companies. Until now, product
development and innovation have mostly taken place in the
research and development (R&D) labs of companies and universities
of industrial countries. But the situation is changing rapidly. We can
even talk about a new phase of globalization, in which developing
countries like China and India, not to say anything about such well
developed societies as South Korea and Taiwan, are taking a more
active role also in R&D and innovation. Although Chinese universities
and research labs seem to imitate Western science, it’s only a
question of time before they will be capable of producing high quality
research and breakthrough innovation. It is noteworthy that that by
establishing joint R&D-driven companies with Chinese partners,
Western and Japanese firms transfer know-how to Chinese firms and
professionals.