After making headlines around the world due to its brutal tactics for controlling a group of protester in Tibet, it’s worth noting that China holds an economy that has been getting stronger within the past decade. With the largest population on the planet, it isn’t hard to imagine why more and more technology companies want to invest in China.

A country where labor is vast and cheap, not mention a government whose interest is to expand its growth with a capitalist eye and the dictatorship of a communist country.

With American companies like Dell, Apple, Oracle, IBM and many others investing in China, we ask ourselves: Why are American companies more often reaching out to other countries to increase their growth? In 2006 China was the fourth largest exporter for US goods, information technology software and telecommunications are good selling opportunities for American technology companies in China. That would explain why many companies would risk developing factories and offices in China with the knowingly ineffective legal system that often fails to protect products against intellectual property theft.

The growth of China attracts small to medium sized enterprises that want a stake in the Chinese market place, but what if all this power that China is rapidly gaining is turned against these companies? How good it is for American organizations, its employees and American citizens to have all this business flowing through the US and going straight to another country? And, how good has it been for China with all these foreign organizations somehow exploiting their people and resources?

So maybe it's a win, win situation, American organizations save some and China gains some.

Only the future will show who is using who, and who is winning.

Disclaimer: The opinions expressed herein are that of the authors and does not, in no way, represent the opinions of Magma Interactive, LLC.