>SNIP>
>>> For example, if China ramps up its local market so that "PCs in use per 1000 people" starts to approach the rates seen in the Western World, as many as eight hundred million PC sales might be anticipated in a relatively short period. By comparison, annual PC sales in the US are about 40 million.
>>
>>Those PC will most likely be running:
>>- Intel and AMD chips (American Companies)
>>- Windows (American company)
>>- Linux (most innovation coming from the US or Europe)
>>- Office (American company)
>>... should I go on?
>
>But what does the licence ownership mean, economically?
>Every one of those things will be manufactured for distribution in CHINA.

I would imagine that the bulk of the sale of a $150 copy of Windows XP goes to Microsoft, with a small amount, perhaps $5 for creating the CD, box and the shipping. That $145 pays for many more high paying jobs that the $5 does. So $145 to the USA, $5 to China. The US is still coming out ahead.