BusinessWeek talks to Leonard Liu, the CEO of Augmentum, a three-year-old Silicon Valley company about China's chances of becoming the next software superpower.  He explains:

Although many boosters of China's software industry have been talking for years about the country as the next India, so far there's no Chinese company that can come close to rivaling Indian powerhouses such as Wipro (WIT ), Infosys (INFY ), and Tata Consultancy Services. Liu says that people who predicted a quick rise for China's software industry didn't understand the business.

While it's easy to build up a manufacturing base, creating a knowledge industry takes a lot more time, he says. "Software experience is nothing that you can get very quickly," Liu points out. "You can rebuild a TV factory that you had in Japan, because most of the work is automated, and workers can be trained very quickly. However, software is a knowledge effort and it takes time for team members to form."

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http://www.businessweek.com/globalbiz/content/aug2006/gb20060829_049079.htm?chan=globalbiz_asia_technology