Why do you think software is the "highest end of the foodchain"? Is finance even higher in your mind?
What makes you think that most hardware made in China is designed elsewhere? To the best of my knowledge, the HUGE Chinese smartphone/tablet market is based on chips, boards, and software all designed there.
To the best of my knowledge, China doesn't do much design work locally. Most factories simply build whatever is on the blueprint which they receive from the West.
What makes you think that most hardware made in China is designed elsewhere? To the best of my knowledge, the HUGE Chinese smartphone/tablet market is based on chips, boards, and software all designed there.