Don't despair so much. Yes...China will be the next superpower. Make that...they are already a superpower and will get more equal in footing.
Yes...the Chinese generally have huge quality issues in their products. But...they are....and have shown to be capable of making high quality products. They simply do not have the quality control "ethic"....in place yet.
They are busy importing that ethic.
Two people from my company just got back from Shanghai. They went...to give QC direction.....to the factory that makes some of our stainless parts.
Having been in some 2800 factories in the past 15 years...I see the trend and the curve.
Here are some points on that curve.
(1) The Chinese as evidenced by their rate of import of fuel, technology and personnel....are growing their infrastructure....and the education base of their populace...at a rate that far eclipses what the US did....between 1875 and 1945 (the golden years).
What that is causing.....is a profound growth and upgrade of both the standard of living of the people in China.....as well as a sharp rise in the cost of doing business there.
This same phenomena...has already made Taiwan, Sinapore and the Philippines (and others)....almost too expensive to go and start a factory in...unless what you need to manufacture can be easily re-tooled on an existing line.
As they get more well off...and better educated.....the people demand higher wages. Its already happening.
Its a pendulum...and it always swings back.
(2) Quality ethic....takes a couple of generations to instill...just ask the Germans.
Right now...what "WE" should be worrying about...is doing the things we do best.....in the most efficient....and highest quality manner we can.
(3) The trend toward having things for cheaper...and swallowing your pride on a bit of the quality...really started to hit hard around 1993....in this country. We...as American consumers.... likes our trinkets for cheap...and are willing to forgo some quality to make sure that out Wal Mart experience is profitable. At least thathas been teh trend.
(4) that trend is changing toward an upswing right now. People are getting back on the curve toward being willing to spend a little more money on quality.....and demanding quality up front.
(5) I just saw this in the paper yesterday (dallas mornings...sub head on front page). Last year...China produced close to 200,000 engineers from their schools. We produced 73,000.
Last year in the Phillipines....the company I was working for (an American company)...took applications for over 4000 engineers in one week (Filipino engineers). The line went down the block. They all spoke perfect English...and Tagalog...and some spoke Japanese as well......and their quality was excellent.
The pendulum will swing back...the playing field will get level. Will we be ready to work hard when it comes back to us?
Think about this. Our pay rates for assembly line technicians for Ford, GM etc....are how much?!!!

Why? Because to have the things a general life contains in the USA....and keep up with the Jonses...and to stay on the good side of the Unions.....we pay our workers...anywhere from $25-65 an hour in the Automotive arena.
How many televisions does your house have? How many computers? How many cars in your family? How many toys, new electronics, luxury items...etc etc. etc.?
Most of my European friends..marvel...and laugh.... at how much "stuff"...most Americans own...and how much our lifestyles cost even in the middle and lower classes.
As evidenced by the "cold sweat" induced by the most recent spate of high fuel prices.....the lifestyle change contemplations....and the fear that your job may be outsourced.....I predict..a great "recconing" in this country over the next decade. People need to start thinking about theeducation of their children....living with less junk...needing to earn a little less money to be happy....and having a little better quality ethic...about what it is we make for the rest of the world. When the pendulum swings back...we can be ready.
By the way.....Both Honda and Toyota...just contracted to begin manufacturing their hybrid cars....in China....this week. They will be for sale in China, the far east...and Europe.
They learn fast for a pack of low quality wanna-be's dont they? Ray