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Colonialism is a loaded word, but if you look at India trying to force cell phone companies to manufacture in India I think there is a clear desire to drive eco
by Eridrus 8y ago
Colonialism is a loaded word, but if you look at India trying to force cell phone companies to manufacture in India I think there is a clear desire to drive economic development through policy. I don't really blame them either, China offers a pretty compelling example of what state intervention in the market can do.
- toomuchtodo 8y agoChina requires non-Chinese auto manufacturers to buy Chinese batteries for their EVs, but Chinese auto manufacturers are free to buy superior Korean batteries for their vehicles. Make someone else bootstrap your industries. It's smart economic policy.
- baybal2 8y agoLets take a look at your claim in details. Indeed, batteries are not included in list of components that can be imported duty free to bonded customs zones, as they don't qualify for being "electronic components." But the situation is the same for all bulk commodities that have to be locally sourced. That is dictated by the initial purpose of free customs zones: give concessions on high value components, but for whatever Chinese industry was good at manufacturing back in nineties, give none. The companies wanting to make EVs, are completely free to establish companies outside of free customs zones if they don't want to pay double duty.
- deleted 8y ago[deleted]
- toomuchtodo 8y agoWere any of my claims not accurate?
- baybal2 8y agoForeign companies can go outside of free customs zones and pay duties as every other Chinese company. That's the point.
- firasd 8y agoYeah. Many countries do that sort of thing, like the US imposing tariffs on car imports unless a some of the assembly is done domestically. I wouldn't necessarily endorse too much protectionism either—India has a clear example of the benefits of moving towards an open market after 1991. In fact the biggest Indian startup exit is Flipkart, bought by Walmart, which demonstrates the value of free flow of capital.
- redditmigrant 8y agoThere is also the example of China which has policies that favor local companies and China has created dramatically more economic value for it's citizens than India's open market.
- firasd 8y agoFair enough, but China's main growth strategy was exporting manufactured goods. I'm not sure it is repeatable...
- seanmcdirmid 8y agoCorrelation isn’t causation. China could have done even better than it did if it was a more open market, and indeed it didn’t start growing rapidly until the government started getting out of the way in the 80s.
- IllogicalLogic 8y agoEngland, France and the US have vested interests in China not growing, atleast a very powerful minority do. Opening markets when these foreign actors very recently attacked your population is basically suicide. Open markets require a certain level of development. Post-Xi (and his anti-corruption measures), this will be possible.
- antidesitter 8y ago> Opening markets when these foreign actors very recently attacked your population is basically suicide. Do you have evidence to support this claim? You seem to be conflating these countries’ governments with their businesses. Also, can you clarify what you mean by “attacked their population”?
- naiveai 8y agoSo compelling, with a dictator, closed-off information and all. So utterly compelling.
- thecleaner 8y agoTheres a whole book about it that makes the claim that development is impossible without state intervention - how asia works. The anecdetoal evidence there is rather compelling.