China Rising - the outsourcing trend

According to Ed Silverman here, China is becoming the leading outsourcing location for Pharma companies.
[It is ranked as the #1 location in Asia according to a report by PriceWaterhouseCooper.]
The most frightening trend for U.S. based R&D operations is that China is becoming "...a rival as a leading source of drug discovery and innovation."
According to one pharmaceutical industry executive interviewed for the report, “Within five to ten years, we will be moving from ‘made in China’ to ‘discovered in China’”