The industrial West's loss of leadership in some manufacturing industries is gathering momentum. The difference today is the gigantic scale of the recipient countries, China and to a lesser extent India. They will soon dominate world manufacturing production, and could then dominate technological development. This briefing is woven around quotes from Confucius, Chairman Mao, The MD of Toyota, UK industry experts such as George Cox, Sir Digby Jones, as well as notable authorities on China. It presents the challenges and the opportunities and warns that a company needs to keep control of manufacturing if it is to maintain sufficient R&D for the next generation of products.