China's mandate: become the innovation nation.

China now boasts more people with Internet connections than any other nation.

It's all part of a comprehensive new plan for economic development set by President Hu Jintao of the ruling Communist Party.

The president has been challenging scientists, engineers and educators to help achieve a goal of becoming an "Innovation Nation" as part of the country's five-year plan.

"Science and technology," he said, "especially strategic high technology is increasingly becoming the decisive force in economic and social development and the focus of competition and comprehensive national strength."

China is not going to be simply a manufacturing center or subassembly and processing factory for other multinational corporations for too much longer, Chinese leaders say. It will turn out creative and innovative workers from the schools and soon reap the major investments they are already making in research and development.

Investment

To accomplish its goals, the Chinese government has authorized more than 70 billion Yuan, or $8.5 billion, for investment in science and technology last year, and plans on doing the same for several more years in the future.

This represents an increase of 20 percent annually.

The Chinese, however, plan to not only increase R&D spending.

A huge propaganda campaign is planned to educate the masses, including online discussions on the topic and the formation of an "innovation demonstration team to tour the country and promote the idea.

The government is also talking of the need to reform the financial and tax systems to provide incentives for the growth of cutting-edge industries.

China is targeting a broad range of sectors, including such controversial areas as stem cells, gene therapy and genetically modified crops, and some areas where the United States has long dominated, including software, semiconductors and space exploration.

China, moreover, intends to become a leader in emerging technologies, such as renewable energy with sources ranging from solar to wind power to fuel cells.

In addition to the increases in R&D, China plans to relax regulations and controls and to provide other incentives for growth in these sectors.

The biggest challenges to China's ambitious goals, the United States has argued however, include changing its attitude on human rights and ensuring basic freedoms, which are the source of creativity and innovation.

China also needs to loosen its grip on citizen use of the Internet.

More than 30,000 employees of China's Ministry of Propaganda routinely police Internet use, and Web companies such as Google, Yahoo and Microsoft block access to selected sites

During the Cultural Revolution, creativity and innovation in people was widely criticized. Academics and students of higher learning were targeted for "retraining" in the countryside.

Overtaking Restrictions

Today, even though the universities are once again revered and respected, the system does not encourage dissent or even inquiry, which, as Einstein once observed, is the root of all learning.

No matter, Peter Cowhey, dean of the School of International Relations and Pacific Studies at UC San Diego told this writer recently.

China is big.

Success in some areas will get through he said because China is simply so big, there will be degreed of innovative and creative discovery, and the restrictive attitude toward of China will be a footnote.

Former Harvard Business School professor John Kao, author of "The Innovation Nation," said, "Our national capacity for innovation has declined to an all-time low, while rising powerhouses such as China, India, Finland, and Singapore have evolved policies to actively foster innovation."

As China and India and other nations target the high end of the U.S. workforce and more and more jobs are either outsourced or off-shored, what is America going to do? Where are all the new jobs in the new economy?

What is our plan for nurturing, retaining and attracting the creative and innovative work force we need to succeed let alone survive the challenges of globalization?

John M. Eger, is the Van Deerlin endowed chair of communications and public policy in the School of Journalism & Media Studies at San Diego State University.