http://mobile.nytimes.com/blogs/dealbook/2014/01/23/lenovo-buys-ibm-server-business-for-2-3-billion/
The story of IBM and Lenovo mirror the story of our government losing the war with China's WEaponized Economy. The Chinese studied back to Sun Tzu the art of defeating your enemy using their own weight against them. Even their forms of self defense reflect this. But this is not about Ju Jit Su; it is about a newer type of warfare that has certainly been used in the past, but always before in the context of a shooting war. The brilliant, critical innovation of the Chinese government was to recognize how poorly focused and corrupt the US government was and how ignorant and incapable of learning they were. In this way they were able to take this critical bit of warfare, perhaps the most critical, and move it from a war time (shooting war) environment to a peacetime environment.
Our government is focused on a very small picture, pandering to special interests to stay in power. Perhaps I am too fixated, but it is one reason the ancient Greek lottery system of providing a house of government appeals to me) by pursuing interests that have little or nothing to do with the basic functions of government (e.g. how to control reproductive rights-with no focus on population development, but only for the sake of artificial moralities of either side; determining fiscal policy based on pandering and not on future needs, designing warfare based on the last war, not the next one a historical recipe for disaster which seems to be repeated by everyone except for the Chinese who are truly already fighting the next war successfully since they are fighting it without any defense by those on the other side)
Lenovo started as a manufacturing arm, located in China to make parts for computers for IBM laptops. They soon were "spun off" to the Chinese as an "unprofitable" arm. It was unprofitable because the profits were all "Chinese Profits", they benefited the workers of Lenovo and the transfer of laptop technology from the USA to China using cheaper assembly lines. Lenovo continued to prosper based on these Chinese Profits, despite overwhelming competition, because the competition did not affect this techology/manufacturing bottom line which was a profit no matter what. And what did it matter, we still had the large server technology...for a moment. Years passed, but what do years matter to a group like China that are capable of thinking distantly into the future at least in this respect (they are willing to sacrifice the world environment for world domination and the USA assists them, "exporting pollution" as if pollution were being sent to another planet instead of upstream in our own.
Now, we find the "hardware" Server business going to China. This move will be accompanied with the standard promise that some of the jobs will be kept here even while many of them have already been exported in terms of the assembly/manfacturing/hardware innovation opportunities, the "Chinese Profit". THis "creeping movement" of the "Chinese Profit" will inevitably be accompanied with real profits. Workers are paid either way, this way their pay goes into overseas coffers. Fewer jobs, fewer high tech jobs exist today than existed yesterday in the USA, more have been created overseas. One level of technology to the other, each transferred in stages, taking more and more of the Chinese Profits weakening the USA technologically a little further, giving the USA less control of its technologies first by outsourcing some of the work, then by taking the actual companies overseas.
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