a) I own 3 companys.
b) I have R&D managers as close friends of two worldwide companies - one Mobile Phone, other Computer items.
Let's take the Phone company - who are regarded as world leaders in this field.
They had production in various locations in the world. Europe / UK and USA failed dismally on production line returns .. and were late on delivery.
The Chinese factory had a near 99% success rate on production line AND delivered on time.
Guess who got shut down ? Yes all production went to China. Even though they knew full well that clones of their phones with same battery packs, parts etc. were coming of the line. I couldn't understand why they would carry on using the factory ...... simple answer. The Mobile company charged the premium price that the brand name allowed, people still bought the brand name and the clone side was in their eye's not sufficient to warrant change of production location.
You may boil at my post ... your opinion is as valid as mine. But don't forget that such bastions of US Business such as IBM ... had all their Computers for years built in China ... finally giving over to Lenovo ...
Don't get me wrong ... iof a company provides back-up, support, after sales care - then great and I pay for it. But here we are talking 20 cent items ... deans plugs ............
I drive a Volvo XC70 ..... comfortable, reliable, with the T5 chip I have in it ... FAST !. Guess who now owns Volvo ?
Eh, never mind. I there is no point in continuing the argument.
I will ask one question though - I take it you are making sure your kids/grand kids all speak and read fluent Chinese and major in Asian studies in College?
I wouldn't worry too much. It's a bubble. Internet bubble, housing bubble, Chinese market bubble. We should have learned by now that things that look too big, too good, too bad won't last forever. This one will be bigger and longer than normal but it won't last forever.