China's indigenous innovation effort

According to Science magazine, the effort

aims to jump-start the country's transition from a manufacturing- to a knowledge-based economy by promoting domestic ownership of intellectual property rights for key technologies. Among the campaign's targets are integrated circuits, high-performance processors, large airplanes, high-speed rail technology, and supercomputers.

China clearly seeks to climb the high technology ladder and become not just competitive on the basis of low cost labor (and willingness to accept negative externalities that other nations would reject) but also innovation capacity based on smart, highly trained people in high quality labs and companies.