By the former head of Google China, the key foundation to this is China graduates 600,000 Engineers a year:
China Is Poised for an I.T. Golden Age - NY Times
My view is China, by not allowing in Foreign competition in the IT areas and the huge political guidance, is hurting their home grown IT market. For IT, India has shown the largest amount of growth, where China has been more focused on hardware that has become a commodity.
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