Will Hsu, who always has great posts, has some really interesting observations about how fast US innovation is being adopted in China. He notes, “The technology diffusion cycle between the U.S. and China is getting faster and faster.”

I’ve seen this as well. Companies in Shanghai and Beijing are jumping on new stuff almost as soon as it’s an idea over here. This is one of the big differences between the outsourcing industries in India and China. India’s technology industry has traditionally been service based. China’s technology economy has a vibrant service component, but its primary focus has always been on developing things for the domestic market as well as for export to the rest of the world.

Morgan Stanley has a really interesting article on the future prospects for the development of indigenous intellectual property in China. The discussion covers some of the factors that have slowed domestic development of IP and speculates on some ways that the country could move forward. I especially appreciated the comparison with South Korea and the US. The rest of us really need to watch this, as most US companies seem to be complacent regarding China’s ability to develop its own IP.

SOURCINGmag.com has an excellent article about a company that decided to have it’s outsourcing work performed in China, instead of India. The case study covers 15 tips that they learned from their experience. The key factors that drove theim to consider outsourcing were: Scalability, efficiency and cost. The main take-away from this discussion is that Chinese companies can provide a very viable alternative to India based resources. China is coming!

China is the world’s fastest growing economy. Increasingly, Western companies are realizing that China has a significant strategic impact on their business. In this discussion, I’ll highlight some of the ways that China will shape your business. Since my background is outsourcing and professional services, a lot of the topics will focus in those areas, but I won’t hesitate to cover any topic that grabs my interest. Comments are appreciated, but I will moderate them. If you’re interested in outsourcing, or just interested in how China might end up affecting you, please read on…!