What's this post about? You went on and on about China being a US competitor (which has NOTHING to do with the topic), then a German saying too many South Asians aren't good and instead of giving some real evidence as to why, you put in that he was being racist, to people having tough time in Pakistan, to American with fake credentials (which is like 1% to about 45% of the Indian population here in the US) and all the other stuff.
The ONLY thing in your post related to the topic was, why the US government hasn't taken the steps to capture people doing visa fraud. Well, if you actually READ my post and see the links in there, there is plenty of evidence and cases provided with many companies were fined millions of dollars. If hundreds of people on H1B visa are being used for other purposes by their employers, but they legally issue a check to them, that's how far the government can go to check. They can't monitor millions of H1B's 24*7 to see what they are doing and if they are violating the law. As long as these guys are here with a valid visa and a check to prove they are still employed by the same company who sponsored them, that's how far the law goes. I've actually heard from one of my employees from India, just a couple of days ago that before he transferred his H1B, his one of the previous employer had 9 people living in a ONE bedroom apartment (about 700 square feet with one tiny bathroom), which was owned by the company. That's how these guys maximize their profits. Plus, he also told me that he knew dozens of people (and per him, its a very common practice), for employers to issue fake checks but actually never transfer the money to employees, while they are in between contracts. So if you are on H1B visa, you go through your savings or be starving if you couldn't find another contract, BUT, the employer will issue you a fake check to comply with the law, and will force you to live with a dozen other people??? This is very common, almost every other Indian company does that.
Frankly speaking, I personally dislike Indian businessmen. Not as individual friends, but in business. Because they play nasty, don't have respect for other humans and can go to the last level of human class, to make profit. The above example is JUST one of many, where their own fellow Indian citizens are forced to live in sub-human conditions in a tiny place, while these guys are educated and make very good money. I am not racist as I've always employed people from India and have treated them well. So well that every time I need something, they're ready to leave their current job and come work for me. But
I think the German you are referring to, had the same issue. In fact, majority of Americans who share my kind of sentiment, do not have an issue with Indian "talent" by any means. The issue is, where we know more than a few examples of where American was put at a disadvantage due to a businessman's "Indian" connections or employees. That's not right, its a violation of the law and very unethical.