Both true and false. They have kept their currency at an artificailly low value, so as to sell their manufactured goods. At the same time, if they let that currency rise to the appropriate level, then they will be in the position to compete successfully for the raw materials in the other nations.
Here in the states, we finally are seeing the engineering students going into engineering, rather than finance, after the bubble burst here. However, that does not make up for the fact that China is graduating ten times the number of engineering students that we are. Even little South Korea is graduating 3 times the number that we are. We will pay for this in the future.
More isn't always better. There is a certain creativity connected to engineering. Also, as long as you work as an engineer, you can NEVER stop learning, not if you want to stay competitive.
If you are a diamond cutter, you might develop a knack for the best way to cut diamonds. It may take you 10 years to learn it, but once learned, it's there forever.
With engineering, materials, electronics, methods, the field is fluid, ever changing.
The company I work for has tried to have it's machinery built in China, but the quality is so low that only the most simple units are built there. The more complex equipment is built here.
50% of engineering students in the US drop out. Calculus, differential linear equations and physics are "hard". But those that stick with it are good. The US graduates less than 100,000 per year. China and India together, nearly a million. Yea, and look at all the Nobel Prizes they are winning.
Probably one of the biggest problems here is the Christian/Republican war on science. Who knows how many we have lost due to religion delegitimizing science?
Don Dodge on The Next Big Thing: 50% of US engineering students dropout - Why?