A recent McKinsey report highlights some of the challenges faced in China around the quality of their graduates, pointing out that their dominance around manufacturing and IT oustourcing won't necessarily mean leadership in the service industries. Poor english language skills are thought to be a factor.  

Microsoft has formed partnerships with four universities in China to establish software labs where students learn practical software development skills.

The chinese government is encouraging foreign firms locating in China to invest more in training and developing the talent they need, while the government concentrates on reforming the country's educational system. They need to improve the quality of their graduates, ensuring they have the necessary skills for services occupations, if they are to avoid a labour shortage in the future.

Meanwhile, Chris Boorman speaking at a recent conference in Bejing, also talks about language - this time, the need for foreign firms to adapt to local cultures if they are to make the most of the Olympics there next year.