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China is not banning Qualcomm from selling chips in China if Qualcomm doesn’t give up its design, but simply offers a deal that Qualcomm can choose to accept or

by majia 8y ago

China is not banning Qualcomm from selling chips in China if Qualcomm doesn’t give up its design, but simply offers a deal that Qualcomm can choose to accept or not. One may argue whether the deal is good for US economy strength, but it is still free trade.

will4274 8y ago
> simply offers a deal that Qualcomm can choose to accept or not With China's culture of corruption, "or not" comes with a giant asterisk of "will face harassment from the communist party"
- majia 8y ago
  What you said is true in many cases, and it should be stopped. However it does not apply to Qualcomm. Firstly yunnan is an underdeveloped region in China, its provincial governement doesn’t really have the power to harass Qualcomm at a meaningful level. Also Qualcomm has strong leverage against Chinese government because its products are hard to replace. Recall what happened when Qualcomm stopped selling its products to ZTE.
  - paulie_a 8y ago
    It will end up applying to them regardless of providence. Companies need to simply stop selling to Chinese companies. It's not worth it due to IP theft. But hey the Chinese government will just steal it anyways.
ksec 8y ago
Would it still be free trade if all your design and IP you give up to not the Chinese JV but "Chinese" in general, and they then uses all all those learning into something of their own? And no, you cant sue them.
- majia 8y ago
  It’s a breach of contract, and it’s wrong. However, when Qualcomm sells its tech, it should factor in this counterparty risk and decide if it is still worth it. I’m not defending this kind of inexcusable behavior; I’m just suggesting free trade means Qualcomm or any private business can make its own decision.
  - cjblomqvist 8y ago
    As long as I'm not misunderstanding you, it seems you are confusing free trade with free to make a decision or not. Free trade means you are able to sell (or buy) things across borders free from government intervention. In this case, the government says you can only sell if you pay a form of tax (paid by IP rather than money). In particular, what people believe is unfair is how these barriers are applied unequal. If Chinese companies want to sell to the US, it's free of such hinders. The other way around, on the other hand, it's not. (obviously this is not true considering the latest tolls and what not, but that's the core premise anyway). Btw. Compare this to a situation when somebody is asking you to kill someone, or they'll kill you. You're free to make a decision, but not necessarily free as what people usually refer to when talking about freedom. Source: https://en.m.wikipedia.org/wiki/Free_trade https://en.m.wikipedia.org/wiki/Free_trade
    - majia 8y ago
      I do agree with you on the general notion of free trade. But in this particular case, there is no mention of any barrier imposed on qualcomm products; the deal is about jointly creating a new product. What I disagree is claiming free trade while suggesting qualcomm should not do certain deals for national interest reasons.
      - cjblomqvist 8y ago
        Ah, I did misread you! I would guess it's rather complicated though, as it might be part of a bigger "agreement" with the Chinese government in order to ensure smooth business in general - but that's of course only speculation on my part.
      - 8y ago
deleted 8y ago
[deleted]

by majia 8y ago

will4274 8y ago

> simply offers a deal that Qualcomm can choose to accept or not With China's culture of corruption, "or not" comes with a giant asterisk of "will face harassment from the communist party"

majia 8y ago
What you said is true in many cases, and it should be stopped. However it does not apply to Qualcomm. Firstly yunnan is an underdeveloped region in China, its provincial governement doesn’t really have the power to harass Qualcomm at a meaningful level. Also Qualcomm has strong leverage against Chinese government because its products are hard to replace. Recall what happened when Qualcomm stopped selling its products to ZTE.
- paulie_a 8y ago
  It will end up applying to them regardless of providence. Companies need to simply stop selling to Chinese companies. It's not worth it due to IP theft. But hey the Chinese government will just steal it anyways.

ksec 8y ago

Would it still be free trade if all your design and IP you give up to not the Chinese JV but "Chinese" in general, and they then uses all all those learning into something of their own? And no, you cant sue them.

majia 8y ago
It’s a breach of contract, and it’s wrong. However, when Qualcomm sells its tech, it should factor in this counterparty risk and decide if it is still worth it. I’m not defending this kind of inexcusable behavior; I’m just suggesting free trade means Qualcomm or any private business can make its own decision.
- cjblomqvist 8y ago
  As long as I'm not misunderstanding you, it seems you are confusing free trade with free to make a decision or not. Free trade means you are able to sell (or buy) things across borders free from government intervention. In this case, the government says you can only sell if you pay a form of tax (paid by IP rather than money). In particular, what people believe is unfair is how these barriers are applied unequal. If Chinese companies want to sell to the US, it's free of such hinders. The other way around, on the other hand, it's not. (obviously this is not true considering the latest tolls and what not, but that's the core premise anyway). Btw. Compare this to a situation when somebody is asking you to kill someone, or they'll kill you. You're free to make a decision, but not necessarily free as what people usually refer to when talking about freedom. Source: https://en.m.wikipedia.org/wiki/Free_trade https://en.m.wikipedia.org/wiki/Free_trade
  - majia 8y ago
    I do agree with you on the general notion of free trade. But in this particular case, there is no mention of any barrier imposed on qualcomm products; the deal is about jointly creating a new product. What I disagree is claiming free trade while suggesting qualcomm should not do certain deals for national interest reasons.
    - cjblomqvist 8y ago
      Ah, I did misread you! I would guess it's rather complicated though, as it might be part of a bigger "agreement" with the Chinese government in order to ensure smooth business in general - but that's of course only speculation on my part.
    - 8y ago

deleted 8y ago

[deleted]