Is High Tech The Next Battlefield For Competition From China?

Intel, Motorola and other chip manufacturers might consider their competitive playing field a tough one - but it's about to get a whole lot tougher. China, source of devastating competition that has traditionally attacked labor-intensive industrial markets, is now targeting technology and engineering-intensive sectors.

And the growth opportunities are so attractive that China's government is stepping in to help the process along. The PRC government is setting up a one billion yuan ($122 million) initial Venture Capital fund aimed at building new capabilities in the country's burgeoning semiconductor industry. The fund will replenish annually. Of course, that's small change to a central bank with over $500 billion in reserves. Outsourcing pressures will likely seem a quaint challenge to U.S. technology companies in a few years when it's full, head-on competition from complete chinese product solutions they're dealing with!