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"That's because all the top companies in any sector in China are subsidized and heavily supported by the government." How? Favorable regulatory environment? Ca

"That's because all the top companies in any sector in China are subsidized and heavily supported by the government." How? Favorable regulatory environment? Cash payments/subsidies?

Jensson 4y ago
In a corrupt enough society they can just go after the competitors with bogus legal claims.
- denkmoon 4y ago
  Lovely handwavey truism but that doesn't do anything to explain the actual mechanism at work here.
  - Jensson 4y ago
    I'm not sure where you guys are coming from, but the top officials of China acknowledges this is an issue. Are you saying that they are wrong and that China doesn't have a huge problem with corrupt officials? Or why else are you questioning these things? https://www.forbes.com/sites/ralphjennings/2018/03/15/corruption-in-china-gets-stuck-half-way-between-the-worlds-best-and-worst/ https://www.forbes.com/sites/ralphjennings/2018/03/15/corrup...
    - sidlls 4y ago
      In fairness accusations of corruption to remove political opponents or "troublemakers" have a long and storied history of application by genocidal dictatorships like China, democracies, and basically every form of government. So merely having an accusation doesn't really say much.
- tremon 4y ago
  Like patent trolling?
wasabi991011 4y ago
I don't know enough to support their extreme position, but for the sake of information: Part of it is state-owned banks (the dominant form of banking in China) offering attractive lending to state-owned enterprises, as loan officers avoid the risk of being accused of corruption. Also, there likely is/was more direct encouragement of exporters (e.g. by subsidies), similar to other countries, but my source doesn't specify if this currently applies to China. Source: Fault Lines: How Hidden Fractures Still Threaten the World Economy (2010)
- gastlygem 4y ago
  None of the top Chinese tech companies are state-owned. Also 2010 was before Xi Jinping. Things have changed a lot now. Now they get striked left and right by regulations. Just look at their stock price.

"That's because all the top companies in any sector in China are subsidized and heavily supported by the government." How? Favorable regulatory environment? Cash payments/subsidies?

Jensson 4y ago

In a corrupt enough society they can just go after the competitors with bogus legal claims.

denkmoon 4y ago
Lovely handwavey truism but that doesn't do anything to explain the actual mechanism at work here.
- Jensson 4y ago
  I'm not sure where you guys are coming from, but the top officials of China acknowledges this is an issue. Are you saying that they are wrong and that China doesn't have a huge problem with corrupt officials? Or why else are you questioning these things? https://www.forbes.com/sites/ralphjennings/2018/03/15/corruption-in-china-gets-stuck-half-way-between-the-worlds-best-and-worst/ https://www.forbes.com/sites/ralphjennings/2018/03/15/corrup...
  - sidlls 4y ago
    In fairness accusations of corruption to remove political opponents or "troublemakers" have a long and storied history of application by genocidal dictatorships like China, democracies, and basically every form of government. So merely having an accusation doesn't really say much.
tremon 4y ago
Like patent trolling?

wasabi991011 4y ago

I don't know enough to support their extreme position, but for the sake of information: Part of it is state-owned banks (the dominant form of banking in China) offering attractive lending to state-owned enterprises, as loan officers avoid the risk of being accused of corruption. Also, there likely is/was more direct encouragement of exporters (e.g. by subsidies), similar to other countries, but my source doesn't specify if this currently applies to China. Source: Fault Lines: How Hidden Fractures Still Threaten the World Economy (2010)

gastlygem 4y ago
None of the top Chinese tech companies are state-owned. Also 2010 was before Xi Jinping. Things have changed a lot now. Now they get striked left and right by regulations. Just look at their stock price.