R&D spending in China is expected to reach $284 billion in 2014, up 22 percent from 2012.  In contrast, R&D spending in the USA is expected to growth 4 percent to $465 billion during the same period.  Analysts expect R&D spending in China to surpass R&D spending in the USA by 2022.  For example, Shenzhen-based Huawei Technologies, the second largest telecom-equipment firm in the world behind Ericsson, spent $5.49 billion in 2013 on R&D.  Huawei’s R&D center in Shanghai employs more than 10,000 engineers, many who have computer science advanced degrees.  Lenovo, another Chinese firm spending billions on R&D, just opened its huge new hub for R&D in the central Chinese city of Wuhan.  China’s Fuzhou Rockchip Electronics and Allwinner Technology are rapidly trying to catch up in the mobile processor chips industry with the USA’s Qualcomm and Nvidia Corp.  Chinese firms by-and-large are “on a mission” to eventually lead the world in technological advancements.

Juro Osawa and Paul Mozur (2014), “The Rise of China’s Innovation Engine,” Wall Street Journal (1-17-14, p. B1)