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Nice job channeling Mao. I didn't make any normative statements, but merely pointed out that China's trade policy is emphatically different from America's. Per
by morgante 10y ago
Nice job channeling Mao. I didn't make any normative statements, but merely pointed out that China's trade policy is emphatically different from America's.
Personally, I think the costs of Chinese protectionism (to China) outweigh its benefits. Yes, you can definitely make the infant industry argument and it has merit—after all, most of the West used mercantilism to develop. However, I think there are 3 major ways that it is counterproductive these days:
1. Chinese consumers simply have less access to the best tools and products. Yes, there are Chinese versions of everything but frankly they are often inferior to the foreign alternatives.
2. Incomplete access to world tools can cripple Chinese startups—especially if they're trying to expand abroad. This isn't a theoretical point: every time I've been in China, entrepreneurs have complained about the difficulties in using basic international tools like GitHub or Slack. If you don't have access to the best tools, it's harder to build a globally competitive tech company.
3. Companies are insulated from competitive pressure. The firewall gives plenty of insulation to build a company on the Chinese market, but once it's ready to compete internationally
> It's also not exactly a fair playground if foreign multinationals with decades of established dominance, experience, R&D, and human capital from the developed world compete against Chinese companies which most would be upstarts or recent companies
This is a really flimsy argument. Many of the companies being shut out of China aren't huge multinationals with decades of experience or capital—they're startups trying to quickly expand. It's not like China doesn't already have a domestic goliaths which are being competed against. WeChat shouldn't need protection from Line to succeed—Tencent has plenty of money to throw around.
The rest of your comment reeks of decades-old propaganda. Revenge for the opium wars and anti-imperialist dogma hardly have a very encouraging history.
- chrischen 10y agoI make no comments to the effectiveness of China's political or country policies or their agenda. I'm simply pointing out that as a country they have a sovereign right to dictate their own rules. It could be ineffective, but if you believe so you should go join the Communist party and start advising them. Certainly if foreign multinational companies cry foul, it's fairly obvious they are biased as they have a corporate and legal agenda to push profits. I don't understand your comment about channeling Mao... Sovereignty and protectionism are the rights of any country, not just China. This includes Japan, which is also heavily protectionist, and even the US, when it comes to their inane corn subsidies. You'd probably support the TPP (https://www.google.com/search?q=tpp&oq=tpp&aqs=chrome..69i57j69i60l5.598j0j1&sourceid=chrome&ie=UTF-8 https://www.google.com/search?q=tpp&oq=tpp&aqs=chrome..69i57...) which aims to limit country sovereignty in favor of shifting power to global multinationals under the guise of "free" trade. Not really free when you consider the foreign multinationals have had a head start (the exact same problem China faces). Such an agreement is designed to take advantage of smaller countries and reduce their power when battling foreign multinationals that exploit those countries. This is essentially at least part of the battle China faces when employing protectionist policies—primarily against foreign multinational corporations.