Red book hook up

Thanks to outsourcing dollars earned by manufacturing smart phones and computers and consumer electronics, China is now a digital and financial superpower with a defense infrastructure to back up its economic strategy in the currency war.

Through its own engineering, international cooperation and ruthless industrial espionage, China now possesses stealth avionics and black program technologies that have strained relations between the Pentagon and Beijing's Defense Ministry on more than one occasion.

Major US software companies have no qualms working around Washington's weak export control regime to provide China with the tools to maintain the national security state that western nations are moving toward.

China has also banked on developing and manufacturing the world's fastest fully operational supercomputer and runs it on Linux.

China then made development of a national computer infrastructure the centerpiece of its Seventh Five Year Plan (1986-91).

A year into the plan, Li Peng became premier and Terry Gou's Foxconn, which assembles Apple-designed products, opened its first manufacturing plant in Mainland China.

Chinese financial participation and production arrangements with France's Dassault Aviation, the EADS European defense consortium, major vendors to the Pentagon and Brazil's Embraer would incentivize China to recycle more dollars to help the West out of the crisis.

To make this happen, China seeks to create high value jobs that pay the equivalent of ,000 a year, the gateway salary for entry into the middle class.

Mao said "let a hundred schools of thought contend." Apple ally Terry Gou says a million robots will replace a million workers in three years.

Boris Babaian was developing supercomputers for Soviet defense applications that were more advanced than those in the West at the time and would later help land him a senior position at Intel. That sent the right message to Beijing where premier Zhou Ziyang was creating an opening for free market experimentation to generate growth and jobs.

But Sculley chose Apple, bringing along his close ties to ex-boss Pepsi Co chairman Don Kendall and other powerful China policy influencers George H. When Sculley was named president of Apple in 1983, China's Vice-Premier Li Peng was head of the State Council Group to develop the computer and electronics industry and was eager to meet with him.

It would have been a much longer march if John Sculley had rejected Steve Jobs offer to come aboard and "change the world." Sculley joined Apple from Pepsi Co at the height of the fabled "Reagan Revolution" when China was getting mixed messages from Washington as part of the Great Communicator's "Evil Empire" strategy.

Beijing could have deepened high tech and military cooperation with the Kremlin since many high level officials were educated in the Soviet Union.

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Foxconn is now the largest exporter of goods from Mainland China, assembling product outsourced by Apple, Acer, Amazon, Dell, HP, Intel, Microsoft and Motorola, among others.

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