Hugh Pickens writes "The NY Times reports that American companies like Applied Materials are moving their research facilities and engineers to China as the country develops a high-tech economy that increasingly competes directly with the United States. Applied Materials set up its latest solar research labs in China after estimating that China would be producing two-thirds of the world’s solar panels by the end of this year and their chief technology officer, Mark R. Pinto, is the first CTO of a major American tech company to move to China. “We’re obviously not giving up on the US,” says Pinto. “China needs more electricity. It’s as simple as that.” Western companies are also attracted to China’s huge reservoirs of cheap, highly skilled engineers and the subsidies offered by many Chinese cities and regions, particularly for green energy companies. Applied Materials decided to build their new $250 million research facility in Xi’an after the city government sold them a 75-year land lease at a deep discount and is reimbursing the company for roughly a quarter of the lab complex’s operating costs for five years. Pinto says that researchers from the United States and Europe have to be ready to move to China if they want to do cutting-edge work on solar manufacturing because the new Applied Materials complex here is the only research center that can fit an entire solar panel assembly line. “This opening represents a critical breakthrough for the photovoltaic industry and China and a tremendous benefit to our customers,” says Applied Materials CEO Mike Splinter. “Establishing this center in China is an integral part of Applied’s global strategy and an important step toward the industrialization of the global solar industry.”"