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In China this is common when everyone wants to do or appear to do Govt promoted ideas and schemes to get govt subsidy. [1] If they do not act in time someone e
by dragonsh 7y ago
In China this is common when everyone wants to do or appear to do Govt promoted ideas and schemes to get govt subsidy. [1]
If they do not act in time someone else will get it.
It works somewhat similar to startup world where one raise money with compelling story, just in this case instead of VC it's govt money. Some survive and become big, but most fail. Obviously some are outright fraud.
[1] https://www.scmp.com/news/china/economy/article/1976825/chinas-robot-industry-plagued-low-quality-overinvestment-and-too https://www.scmp.com/news/china/economy/article/1976825/chin...
- majia 7y agoGov is more likely to be schemed than VC because those who make investment decision don’t get as much reward/punishment. However, for the same reason, gov can also invest in projects with long term benefits. So gov is not intrinsically good or bad; it’s really about good governance.
- Retric 7y agoI don’t know if that’s true. Overselling becomes less enticing to these administrators. It’s really a question if less motivated but more rational people are better at these decisions. That said, there is plenty of incompetence, fraud, and corruption to make the worst on both sides really bad.