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'There is no way they can ever compete with things made in China.' "Think how crazy that statement is: Egypt has masses of low-wage workers, like China. It could be and should be the Taiwan of the eastern Mediterranean, but instead it is throwing in the towel to atheistic China on the manufacture of one of Muslim Egypt's most cherished cultural artifacts.

Ibrahim El Esway, one of the main importers from China of fawanis, gave The Business Monthly a tour of his warehouse in the Egyptian town of Muski: He had imported 16 different models of Ramadan lanterns from China in 2004.

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With its superior technology, they said, China can make mass quantities, which helps to keep prices relatively low.

Egypt's traditional [fawanis] industry, by contrast, is characterized by a series of workshops specialized in different stages of the production process.

No wonder a Mexican journalist told me about the day he interviewed a Chinese central bank official, who told him something about China's relationship with America that really rattled him: "First we were afraid of the wolf, then we wanted to dance with the wolf, and now we want to be the wolf."A few days after returning from Mexico, I had breakfast in Washington with a friend from Egypt, Lamees EI-Hadidy, a longtime business reporter in Cairo.

Naturally I asked her where she was when she discovered the world was flat.

'Imports have definitely cut down on sales of traditional fawanis,' he said.

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