China takes another step into R&D

Ten years ago, the standard rap about trade with China was that the US would always have an advantage.  China would do the low-wage manufacturing, and the US would provide the high wage R&D.  Well, as indicated by a recent report in the Wall Street Journal, it isn’t quite working out that way:

IBM will help Suning develop a technology center at its headquarters in the eastern Chinese city of Nanjing, the U.S. company said Friday. Suning, China’s largest electronics retailer by stores domestically and overseas, will hire 15,000 employees to staff the new operation in the next three to five years, said an IBM spokeswoman, Harriet Ip.

Software developers at the center will create cloud-computing products and personal-computing-device applications so that consumers can use their phones and tablets to control and connect other appliances, such as dishwashers and washing machines, Ms. Ip said.

Note how IBM is helping a Chinese company create its own software development capability.  Another step in China becoming an R&D leader as well as a manufacturing leader. You can read the full article here.

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