I think you are forgetting why all the multinationals were having wet dreams about entering the Chinese market.
One of the reasons for the reverses of 2000 - 2002 was that the North American and European markets were saturated. The people that wanted/could use a computer already had one and there wasn't enough difference between the performance of a 1999 system and a 2002 system to justify replacing it.
The same thing was happening to the Telcos. They had gone a building spree and found that there wasn't that much interest in lighting up all that dark cable. Nortel and Cisco were suffering big time as all their suppliers were.
I had to spend a few years being a warrior again, so I didn't stay on the bleeding edge. However, my 1999 Athalon system still isn't chocking on what is fed it. The 2007 Core Duo system is only because I want to get back into playing with video and I really hate waiting for stuff to happen.
The expansion of market for both AMD and Intel has to happen in places other than North America and Europe. If China is going to bleed off the low end of that market, AMD and Intel aren't going to be able to show the growth expected to justify their borrowing.
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