A recent report from Duke University that critiques the supposed gap between the number of American science and engineering (S&E) graduates and those of merging economies -- especially China's -- has led to false reassurance that the U.S. lead in science and technology is not under threat from China. It would be a grave mistake to drop our concerns about China's competitive challenge.

First, the Duke report simply claimed that China's true number of science and engineering bachelor degrees was 351,000, rather than the widely reported 600,000. Coupling this with an upward adjustment for American graduates still left China producing 214,000 more such degrees than the United States.

Moreover, undergraduates are only part of the concern. China's production of those with doctorates has increased rapidly. By 2003, China's homegrown science and engineering doctorates numbered almost half of the U.S. total.

Chinese were also earning large numbers of doctorates abroad. In 2001, the number of Chinese S&E doctorates earned in Japan, the United Kingdom and the United States equaled 72 percent of the total of S&E doctorates earned by American citizens and permanent residents.

Since 1975, China has increased its global share of S&E doctorates from zero (courtesy of the Cultural Revolution) to 11 percent, not counting doctorates earned overseas. During the same three decades, the U.S. global share has fallen from half to roughly 22 percent.

More worrisome than the aggregate numbers is American universities' reliance on foreigners who earn doctorates. In engineering, foreigners account for over half of America's doctorates, and in computer science just under half.

If foreign-born holders of doctorates continued to stay in the United States, we wouldn't have to worry. Unfortunately, there are many signs that it is becoming much harder to retain them.

One need only look at the flow from Taiwan, one of the former main sources of American S&E doctoral degrees, to see what could happen. Up until 1994, Taiwanese earned more science and engineering doctorates in the United States than members of any other foreign nationality. By 2000, their numbers had plummeted because economic and educational opportunities at home were more appealing.

The Taiwanese didn't just stop coming to America. They also began to leave. As Taiwan's tech sector boomed in the 1990s, huge numbers of Taiwanese technologists (estimates range as high as 100,000) left America for home and took their technical skills with them.

Our two current biggest foreign sources of technologists, China and India, appear to be following Taiwan's path. China has begun to lure back large numbers of technologists. China's central and local governments offer free office space and other benefits to attract technologists home. These inducements are working. A 2005 survey of the Chinese American Semiconductor Professionals Association's members showed that the vast majority regard China as the most likely future work destination, and they rated Shanghai higher than even Silicon Valley on career potential. India's recruitment efforts have also started to bear fruit.

The challenge is not simply keeping up the numbers of technologists in America. China by many measures has improved its technological capabilities. On the Georgia Institute of Technology's Index of Technological Capability, China has more than doubled its index score over the past decade. China now ranks fourth behind the United States, Japan and Germany.

This rapid ascent is not surprising given China's increasing investments. China's research and development spending as a percentage of gross domestic product has tripled to 1.3 percent in the last decade, even while its GDP has ballooned. Few emerging economies spend even 1 percent of their GDP on research.

U.S. patents invented in China are also on the rise. Information-technology patents from corporations' Chinese technologists have risen from 134 in 1997-2001 to 482 during 2002-04. As a first step to meet this challenge, we should increase federal spending on basic and exploratory research. Our R&D spending has been flat at 2.6 percent of GDP for four decades, but the share of federal spending has declined from two-thirds to one-quarter.

Given that corporations now de-emphasize basic scientific research, the federal government should further support the basic research that could maintain our lead at the cutting edge of technology.

Increased federal funding would also address the issue of the falling share of investment in certain disciplines. With spending flat, the rising share commanded by biomedicine has meant a falling share spent on engineering and physics.

Federal support may also play a direct role in increasing interest in pursuing a science education. Since the 1950s, the number of undergraduate S&E majors in America has risen and fallen in line with federal research funding, as Professor Henry Rowen of Stanford University has pointed out.

Before meeting China's challenge, we first must recognize it. Complacency in reaction to "good'' news that China is producing fewer S&E graduates than commonly thought is not the answer.

The fierce debate on immigration ignores a crucial reality -- what is happening to the United States is only one piece, although a big one, of a much larger global picture.

That hit me a couple of weeks ago when I was in Singapore. The Southeast Asian island nation has long been hailed as an economic model, the business capital for the entire region.

But it is an economy facing demographic peril. Its small population of 4 million is shrinking, thanks to a very low fertility rate. Prosperous Singaporean couples work hard, have fewer children and worry about how to take care of their aging parents. By 2050, Singapore will have a median age of over 52, one of the oldest in the world.

Singapore's answer is to import labor. A third of its workforce are migrants, from construction workers to maids. One out of seven households employs a domestic worker -- low-paid women mostly from neighboring Philippines and Indonesia.

Singapore tries to lure "talents'' -- highly skilled and affluent migrants -- to stay permanently. But the men hauling bricks and the maids washing laundry are in a separate class of temporary guest workers, with no chance to join Singaporean society. If a maid becomes pregnant, she is shipped out within seven days. Employers have to post bonds that must be paid should their servants break the rules and try to stay, putting them in the role of migrant police.

Problems of abuse of domestic workers, including physical and sexual violence and confinement, are serious enough to have prompted a report last December by Human Rights Watch.

Singapore's dependence on migrant labor and its guest-worker policy may be at the extreme end but it's very much on the global spectrum. Labor, like capital and goods before it, is part of a global market. The movement of people across borders in search of wages and work, most of it from developing countries to developed, is growing at a phenomenal pace.

The numbers are staggering. From 1980 to 2000, the number of migrants living in the developed world more than doubled from 48 million to 110 million. Migrants make up an average 12 percent of the workforce in high-income countries. About 4 million migrants cross borders illegally every year.

The demand for labor is driven in part by a demographic disaster -- the falling birth rates of developed countries. Almost all of those countries now have fertility rates that are well below 2.1, the level at which a population replaces itself. At the very low end are Hong Kong (0.94), Korea (1.22) and Singapore in Asia (1.24), along with much of Eastern Europe.

Low fertility means shrinking workforces and aging populations. Without migration, according to a recent study, Europe's population would have declined by 4.4 million from 1995 to 2000. Immigration accounted for 75 percent of U.S. population growth during the same period.

This movement of people cannot be stopped, certainly not by hundreds of miles of fences or even by tens of thousands of border guards. It is an issue that cries out for global cooperation, for common policies that cut across national boundaries. Already, we can benefit from looking at what has worked -- and not worked -- elsewhere.

A Global Commission on International Migration, formed in 2003 by the United Nations secretary-general, has taken an initial stab. Their report, issued last winter, supports the growth of guest-worker programs.

The Senate immigration bill now up for debate includes a provision for a guest-worker program. The bill is clearly preferable to the punitive and ineffective approach of the House version. But the Singapore experience -- and previous guest-worker programs like the German import of Turks -- should prompt second thoughts about going down this road.

One problem is that the guests don't leave. The United States has its own experience with this in the bracero program to import farmworkers, and more recently with the supposedly temporary H1-B visas used so extensively by the high-tech industry here in Silicon Valley.

Most troubling to me, these programs create an underclass of migrants who are never assimilated, as happened in Germany. It sets us on the Singapore road, encouraging inhumane policing mechanisms. And it is a gilded invitation to employers to depress the wages and incomes of American workers, and not just in the dirty jobs that are supposedly so hard to fill.

The United States has been rightfully proud of a tradition that treats all immigrants as citizens in the making. Rather than guest workers, isn't it more American to set realistic immigration quotas and enforce them fairly?

The Middle East seems to occupy all the attention of our foreign-policymakers these days. But there are other parts of this globe that are probably more important, and potentially no less dangerous.

One of these is the Taiwan Strait. That narrow passage of water separates China from Taiwan, in Chinese minds a renegade province that must eventually be returned to its control.

The Chinese communist leadership dreads the prospect that Taiwan's democratically elected government might make the island's de facto independence a legal reality. China's heated military buildup in recent years is largely focused on creating the muscle to intimidate Taiwan and to seize the island if that fails.

A war across the Taiwan Strait makes the American top-five list of security dangers. The U.S. commitment to defend Taiwan is ambiguous, but it is not hard to imagine us being drawn into a conflict. And a war in the strait could easily expand to include Japan.

That is why the mayor of Taipei, Taiwan's capital city, got such a rousing welcome last week in Washington. Ma Ying-Jeou, or Mayor Ma as he is popularly known, does not threaten to upset the apple cart of cross-strait relations by pushing Chinese buttons with talk of independence, as the Taiwanese government loves to do.

Sitting down with Ma for breakfast as he made his way home to Taiwan, I could see why he was received with open arms at senior levels of the Bush administration. Ma, the leader of the opposition Kuomintang (KMT) party, is the front-runner in polls to win the 2008 presidential elections. He is articulate, a Harvard Law School graduate with movie-star looks and a reassuring message for Americans.

"We support maintenance of the status quo, which is also U.S. policy,'' he told me.

A KMT-led government would not waver from the "Five Nos,'' a pledge made by President Chen Shui-bian not to take steps toward a declaration of independence. He offers in addition a program of ``Five Dos'' should it return to power.

First, the KMT hopes to resume negotiations with the mainland, based on a 1992 agreement that while there is one China, there are different interpretations of what that means. Second, it will try to reach a peace agreement, lasting from 30 to 50 years. Third, the KMT would expand the already massive economic ties between Taiwan and the mainland into a possible cross-strait common market. Fourth, the KMT would try to create a formula to allow Taiwan to participate in international affairs, including global organizations, short of being an independent state. Last, it would expand cross-strait cultural and education exchanges.

Ma downplays the threat from Beijing these days. "Their goal is no trouble,'' he told me. "They are not interested in unification right now.'' But, he said, the Chinese do worry about "the further drifting away of Taiwan.'' That drift, he fears, could inadvertently force a conflict that might drag in the United States.

That charge is aimed at the government in Taipei. And it is a concern shared by U.S. officials who are visibly unhappy these days with Chen. The warm reception for Ma was intended to send that message to Taipei -- and also to Beijing, ahead of the visit next month of Chinese leader Hu Jintao.

Reassuring as Ma's words may be, there are reasons to be cautious about his message and his prospects.

Taiwanese nationalism may rattle the status quo, but so does China's military buildup. As does the failure of Taiwan to adopt a significant U.S. defense package, offered five years ago, to counter that buildup. The KMT blames the current government for this impasse but the party, which now controls the legislature, has blocked passage of the budget.

Deepening economic ties with China are a market reality, as Taiwan's electronics industry shifts production to low-wage China. But ultimately that could make them another Hong Kong, a satellite of Beijing that must bend to its political will.

Taiwanese are deeply divided. The KMT, the party of mainlanders who fled to the island after the communist victory in 1949, ruled Taiwan for decades as the exiled government of China. But democracy, which came in the 1990s, brought to power native Taiwanese who want to preserve their separate identity.

Ma may prove to be a political leader who plays better in Washington than back home. But if Taiwanese embrace his vision of the status quo at the ballot box, all the better. Ultimately, his mandate must come from Taiwanese, not Americans.