The financial crisis hit the global economy heavily and caused a recession in many countries. The Chinese economy is recovering quickly through a US$586 billion stimulus package, and China is confident of achieving 8% GDP growth in 2009. China‘s Consumption-to-GDP ratio is growing, but analysis indicates China's Investment-to-GDP Ratio will reach 50%, which is a record high. Forecasts say China’s GDP in 2010 will grow faster compared with 2009, but what is the true picture underneath the surface?

China is famous for being the world’s factory, producing almost everything from clothes, shoes to computers and cars. But the cost of production is rising fast; some companies and their suppliers are starting to rethink where to locate facilities. Should foreign investors move their factories somewhere else to save cost or stay in China to supply the world's biggest market? How does a company develop a strategy that allows it to make a quick change or chase a market shift?

A significant proportion of China’s growth has been export-driven; the country has become the workshop of the world. But China is beginning to move up the value chain and is becoming more innovative. Ten years ago, there were only six Chinese companies listed on The For tune 500;today this number has increased to 43. With a huge budget boost, China is now one of the world’s leading R&D centers and a technological leader in several domains including clean energy and electric cars. What have been the drivers for this rapid change and why has the transformation been so successful?