Fareed Zakaria

To get a sense of how completely China dominates low-cost manufacturing, consider Wal-Mart. Wal-Mart is America's — and the world's — largest corporation. Its revenues are eight times those of Microsoft, and make up 2 percent of America's GDP. It employs 1.4 million people, more than GM, Ford, GE and IBM put together. It is legendary for its efficient — some would say ruthless — efforts to get the lowest price possible for its customers. In doing this, it has used technology, managerial innovation, but, perhaps most significantly, China. Last year Wal-Mart imported $18 billion worth of goods from China. Of Wal-Mart's 6,000 suppliers, 5,000 — 80 percent — are in one country, and it isn't the United States.