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>Forcing your enemy to invest heavily in such key sectors is pretty stupid. Generally this makes sense, but not in China’s case where they require all foreign
by SkyMarshal 9y ago
>Forcing your enemy to invest heavily in such key sectors is pretty stupid.
Generally this makes sense, but not in China’s case where they require all foreign ventures to team with a Chinese company who then steals the foreign partner’s IP. No way a Western semiconductor company could set up a fab in China without creating a competitor 5-10yrs later using their own IP against them.
Thus the Wassenaar Arrangement makes sense, it prevents any Western semiconductor company from gaining a short term advantage over its competitors by leveraging Chinese cost efficiencies, incentivizing all of them to self-destructively follow suit.
- netheril96 9y agoThe Wassenaar Arrangement bans the export of products, not the joint ventures, although I guess the latter are implicitly not allowed. It would be safe for Western companies to sell made products to China if not for the political reasons, since China could not copy the product itself.
- sangnoir 9y ago> Generally this makes sense, but not in China’s case where they require all foreign ventures to team with a Chinese company who then steals the foreign partner’s IP China is also capable of figuring things out from first principles, or espionage from non-partners. An example of this was the decision by the US to exclude China from the ISS - they built a couple on their own (no partners) and will be there after the ISS de-orbits or privatizes.