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China Aims To Move Up the Food Chain 257

krou notes reporting in the Christian Science Monitor that the current economic crisis is helping China's push into higher-end manufacturing by shaking out low-profit companies. The hope is that, instead of just assembling iPods, Chinese companies will be able to invent the next big thing instead. In this move China is following the well-worn path taken by Japan and the Asian tigers before it. "Last month, the National Development and Reform Commission announced revised plans to transform Guangdong and neighboring Hong Kong and Macau into a 'significant innovation center' by 2020. One hundred R&D labs will be set up over the next three years. By 2012, per-capita output in the region should jump 50 percent from 2007, to 80,000 yuan ($11,700). And by 2020, the study predicts, 30 percent of all industrial output should come from high-tech manufacturing."

Be careful when a loop exits to the same place from side and bottom.