You don't need a meteorologist to know the winds are shifting east, where China's economy is roaring to life with a huge appetite for technology. Development and production are booming, and the country now is poised to overtake the United States as the world's dominant technology end market. With the playing field rapidly and drastically changing, venture capitalists investing in new U.S. technology ventures today are realizing that building China into the startup business plan is becoming a necessity rather than a choice.

China's emergence as technology end market powerhouse is not surprising, given its skyrocketing economy, sharp rise in discretionary income and its gigantic population. According to a March 2006 report on global technology/media/telecom by equity research firm Morgan Stanley, China now is entering the sweet spots of technology adoption and penetration and is showing great potential for substantive growth in the next five years. The report predicts that China will pass the United States in the technology/media/telecom market this year.

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