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How do you know the main reason that the Chinese are looking to invest in the US within high tech VC? There is growth opportunities all around the world that d

How do you know the main reason that the Chinese are looking to invest in the US within high tech VC? There is growth opportunities all around the world that don't require leaking business plans or technologies to a government that is hostile to worldwide IP protection. They clone all our major businesses (Google, Uber, etc), they shut us out of their currency markets, they shut us out of their property markets, they burden us with complex banking requirements and inexplicably expensive and annoying travel visas. But go on and tell me why I should be behind Chinese money further infecting our economy in this asymmetrical trading relationship. I understand Nato policy towards China is one of engagement. Pulling them so far into trade that they can't afford to take drastic military action, but it's getting to be a bit much. It's especially evident here in Toronto / Canada, where the government or highly, highly government connected businessmen fund some politicians and essentially not-for-profit news outlets (usually in Chinese). China isn't Europe. Dealing with them requires a much more realistic, firm hand.

ryandamm 10y ago
To be fair, Chinese capital outflows are going everywhere in the US (and Canada), high tech is a tiny part of it. (Though there are structural reasons why capital leakage via investment is easier than other capital leakage.) In your own country, I'd point to Vancouver's real estate market as an example of Chinese capital flight that has nothing to do with IP. And to be fair, copying successful tech companies with local clones isn't a purely Chinese phenomenon. I forget the name of that German firm that was doing precisely that, but they're a good counterexample and a common villain on these forums.
- 3pt14159 10y ago
  The difference is that they actively took steps to block our companies there, like Google, who had a fully working Chinese search engine. I get the Realism in politics reason they did it, but it doesn't mean that we have to have to treat China with the open hearts, open doors philosophy we've been dealing with other more liberal economies.
wtvanhest 10y ago
Just to be clear, the Chinese are not alone in cloning business models. The difference is that the barrier to entry from us firms is higher so at least one Chinese clon of each type survived and grows.

ryandamm 10y ago

To be fair, Chinese capital outflows are going everywhere in the US (and Canada), high tech is a tiny part of it. (Though there are structural reasons why capital leakage via investment is easier than other capital leakage.) In your own country, I'd point to Vancouver's real estate market as an example of Chinese capital flight that has nothing to do with IP. And to be fair, copying successful tech companies with local clones isn't a purely Chinese phenomenon. I forget the name of that German firm that was doing precisely that, but they're a good counterexample and a common villain on these forums.

3pt14159 10y ago
The difference is that they actively took steps to block our companies there, like Google, who had a fully working Chinese search engine. I get the Realism in politics reason they did it, but it doesn't mean that we have to have to treat China with the open hearts, open doors philosophy we've been dealing with other more liberal economies.

wtvanhest 10y ago

Just to be clear, the Chinese are not alone in cloning business models. The difference is that the barrier to entry from us firms is higher so at least one Chinese clon of each type survived and grows.