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The US also heavily subsidizes its industries. It is just not done in a smart way. US money goes mainly into increasing profits of already rich companies, so th
by coliveira 3y ago
The US also heavily subsidizes its industries. It is just not done in a smart way. US money goes mainly into increasing profits of already rich companies, so they have less incentive to innovate and create new products. China spreads its money across the whole industry, so new companies will benefit and create a complete supply chain.
- seanmcdirmid 3y agoA lot of Chinese money just goes to zombie SOEs, but are really funding some official’s villa and foreign education for their kid. Chinese money can be just as dumb as American money. There were a ton of scammy EV companies selling basically golf carts when China first started subsidizing EV development and sales. It took around half a decade to get rid of those.
- coliveira 3y agoNothing is perfect, but Chinese strategy is smarter overall. They achieve a lot with less money.
- seanmcdirmid 3y agoI disagree. The Chinese are just able to leverage a lot of what would have been disposable income for normal working people. In fact, this why their demographic decline is going to be especially painful.