4 ms·
It's easy to forget that China is still a developing nation (~$10k gdp/capita) and protectionist policy is designed to allow developing nations to strengthen do
by tom-_- 6y ago
It's easy to forget that China is still a developing nation (~$10k gdp/capita) and protectionist policy is designed to allow developing nations to strengthen domestic industries.
If "free access" were permitted, these Chinese companies would surely be absolutely crushed by their US counterparts and its citizens would forever be consumers of US goods while forever providing the cheap labor to produce them.
To build self-sustaining growth, a country must establish the positive feedback loop of consuming its own goods.
- ChuckNorris89 6y ago>If "free access" were permitted, these Chinese companies would surely be absolutely crushed by their US counterparts and its citizens would forever be consumers of US goods while forever providing the cheap labor to produce them. I feel like if you were to replace China with Europe your statement would still apply for the software sector.
- ahmedalsudani 6y agoSure. Europe would be well served by building a moat around European tech upstarts.
- rorykoehler 6y agoThat's not really our problem though. They've shown they have no intention of opening up regardless of how rich they get.
- yorwba 6y agoHave you perhaps heard of "reform and opening up"? It started being a thing in the 1970s and every Chinese government since then has opened up more and more, because that's how they're getting rich. The latest big move in that direction was the new Foreign Investment Law https://en.wikipedia.org/wiki/Foreign_Investment_Law_of_the_People%27s_Republic_of_China https://en.wikipedia.org/wiki/Foreign_Investment_Law_of_the_... that went into effect this year, which introduced a bunch of big changes, such as switching from the previous system of "everything is off-limits to foreign investment unless explicitly allowed" to "everything is open to foreign investment unless explicitly forbidden". That list of restrictions http://images.mofcom.gov.cn/wzs/202006/20200624143734575.pdf http://images.mofcom.gov.cn/wzs/202006/20200624143734575.pdf already includes provisions for further opening in the future, such as removing the last restrictions on manufacturing passenger cars by 2022. (Special-purpose vehicles, electric cars and commercial vehicles are already exempt.) If that doesn't demonstrate "intention of opening up", I don't know what would. The only thing about China that hasn't changed seems to be Western commentators' knowledge of it.
- rorykoehler 6y agoI'll believe it when I see it. This law will be applied arbitrarily. Try critising Xi and see how far you get.
- yorwba 6y agoIs Tesla's wholly-foreign owned Shanghai plant enough to see to believe, or does Musk need to compare Xi to Winnie the Pooh first? https://www.scmp.com/business/companies/article/2154674/tesla-build-its-gigafactory-shanghai-capacity-produce-500000-cars https://www.scmp.com/business/companies/article/2154674/tesl...
- rorykoehler 6y agoIt’s one data point.
- vacuum04 6y agoMan, you are so awesome. See everything through.
- op00to 6y agoBuild domestic industries by stealing IP from foreign competitors? that’s not super cool to do.
- phatfish 6y agoExporting US centric laws to the world and ensuring that preferable conditions for the US are "legal" is not cool either. China has only recently become a big enough economy in their own right to say "nice try but no thanks" to US driven international law.