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It depends on what they need to fund. I don’t see why an investment of say 200 billion dollars over 5-7 years can’t bring them to the forefront in chip making.
by thewarrior 6y ago
It depends on what they need to fund. I don’t see why an investment of say 200 billion dollars over 5-7 years can’t bring them to the forefront in chip making. They have forex reserves in the trillions.
SMIC which is their Intel raised 7 billion dollars last week from investors inside China. That’s on top of what the government is putting in. People underestimate the resources at chinas disposal.
- ethbro 6y agoChina's economy looks very different if the world starts treating them differently. All while they're attempting to transition their economy from lowest-cost manufacturer to value-add. It's benefited from 20 years of optimistic free market access. No doubt they'll find trading partners, but it's not going to look anything like the open doors they've been used to. And they're going to start finding that their domestic and international choices now have trade consequences, rather than the look-the-other-way, laissez-faire approach the world has taken thus far.
- thewarrior 6y agoExports are 17 % of China’s GDP. High but not as high as say Germany. It doesn’t seem like a fall in exports would be unmanageable. Not to make a virtue out of a harsh reality but chinas export heavy model wasn’t sustainable anyway.