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Pretty sure these aren't meant for us. Probably building them so they don't have to use American parts. What's funny is that everyone claims that no one wants

Pretty sure these aren't meant for us. Probably building them so they don't have to use American parts. What's funny is that everyone claims that no one wants decoupling. While at the same time, everyone is also taking measures which are at once, very rational, and lead inevitably to a decoupled world.

baybal2 7y ago
It has more to do with state grants, which in China are quite big
- bnt 7y ago
  Which they are forced to give. If US companies stop selling components to China, it’s back to the stone age for them.
  - yorwba 7y ago
    Iran is pretty far away from the stone age, despite US sanctions. If the components can't be sold legally, they can still be smuggled. The added inefficiency would of course drive prices up, but it wouldn't be quite as disastrous as you seem to believe.
  - bildung 7y ago
    Hardly. The US is still a large trade partner for China, and an immediate stop will certainly trigger a domestic crisis, but they aren't really that dependent on the US. I'm not aware of a single item that only the US exclusively produces. OTH China invests 95% of GDP on infrastructure (compared to 1.5% in the US), creating a huge domestic market. And a a stop of trade with the US will also mean a stop of China keeping the dollar strong - which they do because their currency is pegged to the dollar. They won't have a reason to continue this practice without trade with the US.
    - bildung 7y ago
      *9% of GDP for China of course, not 95%!
- bilbo0s 7y ago
  And government tech grants are very rational. We give them out in the US as well. Governments have their goals. I can understand that. I'm just saying that the amalgamation of rational actions on the part of everyone involved has the potential to lead us to the decoupled world that everyone claims they don't want. Of course China should fund their chip industry. It's common sense. Long term, they should probably be using their own chips. Also common sense. But imagine the same common sense being applied across the economies of all great nations in every critical sector. Think about where such measures lead in terms of global trade. Maybe it's good? Not saying it's a definite bad thing. I'm a dad, when my kids were younger, if they couldn't get along I made them take their things and go back to their rooms. I have to admit, that made for a much more peaceful house. I'm just saying that it's probably better for the development of the children for them to peacefully play together.

baybal2 7y ago

It has more to do with state grants, which in China are quite big

bnt 7y ago
Which they are forced to give. If US companies stop selling components to China, it’s back to the stone age for them.
- yorwba 7y ago
  Iran is pretty far away from the stone age, despite US sanctions. If the components can't be sold legally, they can still be smuggled. The added inefficiency would of course drive prices up, but it wouldn't be quite as disastrous as you seem to believe.
- bildung 7y ago
  Hardly. The US is still a large trade partner for China, and an immediate stop will certainly trigger a domestic crisis, but they aren't really that dependent on the US. I'm not aware of a single item that only the US exclusively produces. OTH China invests 95% of GDP on infrastructure (compared to 1.5% in the US), creating a huge domestic market. And a a stop of trade with the US will also mean a stop of China keeping the dollar strong - which they do because their currency is pegged to the dollar. They won't have a reason to continue this practice without trade with the US.
  - bildung 7y ago
    *9% of GDP for China of course, not 95%!
bilbo0s 7y ago
And government tech grants are very rational. We give them out in the US as well. Governments have their goals. I can understand that. I'm just saying that the amalgamation of rational actions on the part of everyone involved has the potential to lead us to the decoupled world that everyone claims they don't want. Of course China should fund their chip industry. It's common sense. Long term, they should probably be using their own chips. Also common sense. But imagine the same common sense being applied across the economies of all great nations in every critical sector. Think about where such measures lead in terms of global trade. Maybe it's good? Not saying it's a definite bad thing. I'm a dad, when my kids were younger, if they couldn't get along I made them take their things and go back to their rooms. I have to admit, that made for a much more peaceful house. I'm just saying that it's probably better for the development of the children for them to peacefully play together.