China Is Poised for an I.T. Golden Age

Kai-Fu Lee:

Chinese universities graduate more than 600,000 engineering students a year. China has consistently placed at or near the top of programming competitions. And while we have not seen China become a leader in information technology and computing, I expect that this will change in the coming decade.
Since the Internet revolution of the late 1990s, many successful companies have been built by taking American ideas and localizing them for China. These companies may have “copied” from the United States at first, but they acted swiftly, focused on their customers and developed their products, adding more and more local innovations.
For example, Tencent, one of China’s three Internet juggernauts, started with an instant-messaging product named QQ, which was a replica of the same system on which Yahoo Messenger and MSN Messenger were based. But today, QQ has evolved to become a very different product — a combination of instant messaging, social networking, universal ID and gaming center. QQ has built the world’s largest online community (about 700 million active accounts), while its American counterparts continue to build instant messaging as loss leaders.