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iPod points to struggle ahead

The Chinese government has been running a television advertising campaign over the past month to improve the international image of China-made products. At one point the camera focuses on an Apple iPod and a caption written on the back that says: “Made in China with software from Silicon Valley”.

There are many potential landmarks for the surge in the Chinese economy over the past decade – the bulging foreign exchange reserves now worth more than $2,000bn (£1,250bn, €1,386), the endless energy investments in far-flung lands or the longest sea bridge in the world in Hangzhou Bay. But in many ways the iPod is the most appropriate symbol for the surge because it encapsulates both the great advances that have been made as well as the long road ahead.

Since 2000, China has graduated from making a large part of the world's low-end products – think socks or cigarette lighters – to making the most sophisticated, design-led consumer electronic goods.

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