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Chinese tech companies have a vast internal market to grow within (similar to the U.S.), but contrary to the U.S, once they reach a certain size the government
by mech1234 7y ago
Chinese tech companies have a vast internal market to grow within (similar to the U.S.), but contrary to the U.S, once they reach a certain size the government actively helps them rather than hinders them. Once they reach this scale they are selling in international markets, and it becomes apparent to Western countries that they should try to fight and at least regain their own domestic market power.
Huawei threatening to become the global standard 5G telecommunications equipment manufacturer is a good example.
China's formula of state capitalism is likely to win in winner-take-all markets. Tearing U.S. giants into pieces would only hurt our competitive position.
- president 7y agoThis is why many are calling for the US and allies to decouple from China. Why continue to do business and empower a state that is not engaging in fair and free trade practices? For that matter, why is China still part of the WTO if it is not going to be a team player in the game of international trade?
- wavefunction 7y agoAs we saw with Western business folks who were victims of Chinese industrial espionage, they would rather have whatever access they have to Chinese markets than rock the boat.