Chinese Silicon Cities Closing the Gap

China is making very good headway in creating a knowledge-based economy. A recent news article had this to say about China's ascent as a technology and knowledge leader: "China's marriage of high-tech and low-cost labor undercuts competitors in California's Silicon Valley and Oregon's Sunset Corridor. Its quick success also contradicts the conventional wisdom that developing countries gradually climb the technology ladder while advanced nations such as the United States preserve top-rung jobs."

Last month we reported on China's rapid economic growth and its success in attracting foreign direct investment. China is the country to watch this year on the economic front. It is just about the only national economy that is growing at this point. The only possible threat to the Chinese miracle are the possible political and economic ripple effects of the major military conflicts brewing in the Middle East; and there will be some for every world nation.