The number two economy offers huge resources and internal market. We've seen many examples like Apple. Apple first uses the cheap, educated, and flexible labor of China. In addition, it uses its technical resources of about 40,000 technicians and engineers. Now, Apple is making tons of money in selling Apple products to China.
The late Sam Walton objected importing Chinese products by selling products made in US for a few percentage higher. He underestimated the 'percentage' by a wide margin. Now WalMart is the best trade partner for China and makes tons of profits after changing its policy.
So are many bankrupting companies being rescued by China like GM and A123. China has a tendency to over-pay, but in the long run it could be a strategic move to speed up modernization of its technology.
The recent example is bringing movie 3D technology to China to cater the huge movie audience there. First is the Dreamworks and now is Carmeron.
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