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Drones will dominate warfare going forward (see Ukraine). Having production capacity for drones concentrated in your primary geopolitical competitor country is

Drones will dominate warfare going forward (see Ukraine). Having production capacity for drones concentrated in your primary geopolitical competitor country is a bad idea. Hence these policies (which make a lot of sense to me and equally apply to other fields like semiconductors).

CaptainOfCoit 2y ago
Wouldn't it make more sense to try to develop your own production instead of trying to prevent import of someone else? Even preventing import doesn't stop your geopolitical competitor's production. But you never hear any public politician arguing the drones should be made in-house, only that the ones across the sea might be evil. And since the US supposedly is pro-capitalism and free markets, wouldn't it make sense that someone in the US develops a superior consumer product and "defeats" the evil competitor products that way?
- soramimo 2y ago
  > Wouldn't it make more sense to try to develop your own production instead of trying to prevent import of someone else? In a nutshell, what's happening here is that China is employing industrial policy strategically [1]. Drones are one example, but there are plenty of others like ship building, EVs, batteries, rare earths and many others [2]. The way this works is that industries are subsidized directly or indirectly to drive competition of the market and get to economies of scale. One sufficient scale is reached, it's very hard to for new companies to out-innovate incumbents (at least in capital intensive industries like manufacturing). Now, to answer your question, protecting your domestic industry against unfair competition is giving local companies chance to innovate and establish domestic production - which in case of military conflict will play a decisive role [3] (noting that it doesn't have to be "domestic", but can be "friendshored" to allied countries, e.g. ship building in Korea and Japan). [1] https://en.wikipedia.org/wiki/Industrial_policy https://en.wikipedia.org/wiki/Industrial_policy [2] https://foreignpolicy.com/2024/04/11/america-industrialpolicy-china-economics-infliation-manufacturing/ https://foreignpolicy.com/2024/04/11/america-industrialpolic... [3] https://www.noahpinion.blog/p/were-not-ready-for-the-big-one https://www.noahpinion.blog/p/were-not-ready-for-the-big-one

CaptainOfCoit 2y ago

Wouldn't it make more sense to try to develop your own production instead of trying to prevent import of someone else? Even preventing import doesn't stop your geopolitical competitor's production. But you never hear any public politician arguing the drones should be made in-house, only that the ones across the sea might be evil. And since the US supposedly is pro-capitalism and free markets, wouldn't it make sense that someone in the US develops a superior consumer product and "defeats" the evil competitor products that way?

soramimo 2y ago
> Wouldn't it make more sense to try to develop your own production instead of trying to prevent import of someone else? In a nutshell, what's happening here is that China is employing industrial policy strategically [1]. Drones are one example, but there are plenty of others like ship building, EVs, batteries, rare earths and many others [2]. The way this works is that industries are subsidized directly or indirectly to drive competition of the market and get to economies of scale. One sufficient scale is reached, it's very hard to for new companies to out-innovate incumbents (at least in capital intensive industries like manufacturing). Now, to answer your question, protecting your domestic industry against unfair competition is giving local companies chance to innovate and establish domestic production - which in case of military conflict will play a decisive role [3] (noting that it doesn't have to be "domestic", but can be "friendshored" to allied countries, e.g. ship building in Korea and Japan). [1] https://en.wikipedia.org/wiki/Industrial_policy https://en.wikipedia.org/wiki/Industrial_policy [2] https://foreignpolicy.com/2024/04/11/america-industrialpolicy-china-economics-infliation-manufacturing/ https://foreignpolicy.com/2024/04/11/america-industrialpolic... [3] https://www.noahpinion.blog/p/were-not-ready-for-the-big-one https://www.noahpinion.blog/p/were-not-ready-for-the-big-one