Asahi Shimbun reports Matsushita Electric Industrial Co., after 15 years in China, stopped importing parts from Japan in favor of making parts with local, cheaper labor. Keeping up with the competition, especially when labor is a key factor of production costs.

Not too novel.

Now they're moving R&D to China.

Matsushita stopped making microwaves in Kentucky in November 2000, and shifted production to Shanghai.

Matsushita is shifting not only production but also research and development to China. It established two R&D centers-one in Beijing in January 2001 and the other in Suzhou, Jiangsu province, in April 2002.

At the Suzhou center, about 40 Chinese engineers are set to start developing air conditioners, which will be produced at a plant in Guangzhou. The company is also considering developing Internet-connected household appliances in Suzhou.

If Matsushita is to successfully shift its R&D to China, a crucial factor will be finding local talent willing to work for the firm.

At its Beijing center, Matsushita has about 100 engineers working on mobile phones and digital television. The company has tied up with Tsinghua University and other local schools, and has started developing third-generation mobile phones.

"The key is how much excellent Chinese talent we can recruit and how long we can keep those people with us," Ozawa said.

You're not safe just because you're smart, educated, and wear a pocket protector. White collar work is nearly as mobile as factory work. So contemplate your future.