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vantages brought the lack of innovation and rule by ethics, but not by law. C. Chinese Misunderstanding of American Individualism The gist of American individualism should be emphasized in China even in today’s world, which is growing flat. The reason is that to understand is the first step to discover and learn merits from others. The knowledge about American individualism of ordinary Chinese people is that all the Americans want their own rights and interests, so there consequently is chaos in the society. In fact, this kind of thought is one-sided. To be exact, individualism can be called the origin of innovation and it relates closely to democracy, equality and justice. In the eyes of most Chinese, Americans have less respect for others and they do what they want to, not taking others’ will into consideration. That is actually wrong knowledge of Americans. Let’s take one story as an example. Chinese scholar Xue Yong once taught The Analects of Confucius in the class in a Boston university. At the beginning, the teacher was a little worried, for Americans in his eyes are bound to resist such typical traditional Chinese ideas. But surprisingly, when the teacher explained the meaning of several sentences from The Analects of Confucius, one of his American students nodded his agreement. And then the teacher cannot help asking advice for the American student on his understanding of this selected piece. The excerpt refers to that for a dutiful child, he will certainly not offend the authority and so he will never raise a rebellion. The American student agreed with such opinion. He said that was just like the rules in a rugby team in American schools, one most popular sport in America. At the time, the topic of The Analects of Confucius changed into the hours of PE. In American schools, there are three popular ball sports: basketball, baseball and rugby. And each of them represents its distinctive style and culture. Basketball reflects bold and restrained character of the children from urban slums while rugby, prevalent in suburbs schools, gives expression to the highly disciplined teamwork. To behave as Confucius said is like to behave in a rugby team. According to that student, Americans will not respect a wayward NBA star despite of his superb skill. Such NBA star has little fans, for American football teams always become inferior when they facing the well disciplined teams from Europe. Through this story, Xue Yong concluded that the American children are taught to cooperate with and respect others when they played balls in their early school years and Americans value good discipline and order, too. The rooted knowledge about American individualism in Chinese minds is at least one-sided view. II． Two Setbacks for Chinese Present Development A. Weak Ability to Innovate in Science and Technology In the world, of every four copy machines, three of them are made in China; half of the DVD is made in China. But the Chinese companies own only 0.03% intellectual property rights of their core technology. Different from China, which makes manufacturing industry the central part, India’s fast development is supported by IT, communication, banking and other industries which are based on the higher education? The view that India will become another China is shallow and superficial, for China is a ‘world factory’ while India is a ‘world office’. Now, to be creative is the Chinese government’s slogan. It alleged that by 2010, C