One of the advantages living in the valley is to meet a lot of innovative companies. One of them is Meraki, a Wi-Fi service and equipment provider backed up by Google and Sequotia Capital. They are selling a very well-designed Wi-Fi access point, and having a full data management center. Their logan is to "connect the billion".
I talked to a guy from the company on its business in China. It's amazing that he said "We are scared of China". He referred to the fact that some companies in China tried to learn the Meraki products and then copy it all. "We are so scared of it".
It is a dangerous sign for China's manufacturing industry, especially in the technology sector. As I said before, intellectual property protection is necessary to boost the creativity. There's no free lunch, and people have to design their own stuff instead of continuing the habit of copying others. Or, outsiders will get scared, and China will lost the connection.