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The writing has been on the wall for over a decade, at this point. The only companies that "risk it" with China are the ones that rely on borderline (or in some
by talldayo 2y ago
The writing has been on the wall for over a decade, at this point. The only companies that "risk it" with China are the ones that rely on borderline (or in some cases, literal) slave labor to maintain their margins. If you don't have an outstanding manufacturing investment to honor, it's a net-negative reliance in many cases.
- robinjhuang 2y agoCanva has a great presence in China.
- alephnerd 2y agoCanva is Australian though.
- azinman2 2y agoStill foreign.
- alephnerd 2y agoTrue, but Australia and China have extremely close economic relations due to proximity and an FTA.
- t-3 2y agoThat's a pretty one-way relationship though. Australia and China are literally thousands of miles away from each other, but China is still important to Australia because all the continental landmasses are far from Australia.
- versteegen 2y agoWell unlike most countries Australia and China have a lot of two-way trade (though imports to China are double exports) because China imports lots of raw minerals (as well as food) from them, and noone buys as many raw materials as China does. And thousands of km is still much less than twenty thousand to Europe. https://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_China https://en.wikipedia.org/wiki/List_of_the_largest_trading_pa...
- ksec 2y agoOr a simpler explanation, China owns most / lots of Aus companies, from raw material to farm lands.
- ghaff 2y agoFor many things, it was never a particular net positive. At this point, it makes sense to cleanly and quietly withdraw. This particular release isn't especially quiet but many companies are just stopping doing activities at convenient points.
- soared 2y agoThis is not remotely accurate. Plenty of large tech companies still play in China. The difficulties are very high but if you are big enough the huge market size it’s still very profitable. I don’t think google/etc are in China for its slave labor.
- ghaff 2y agoCertainly, depends on the company/organization. If working in China is a big win then many companies will decide to continue doing so while preparing other options. If it's more marginal, then starting to carefully pull out probably makes sense. Which is more or less what I'm seeing. I'm not sure about ten years but the situation over the last five has started to become pretty clear.
- alephnerd 2y ago> Plenty of large tech companies still play in China Depending on the segment you are in within the tech industry, the Chinese subsidiary of the foreign company might be a white-labelled Chinese offering (eg. AWS China, Azure China) or entirely unique IP developed in-house by the Chinese subsidiary.
- flaminHotSpeedo 2y agoAWS and Azure in China are the literal opposite of white labeling. It's still the global product, branded under the global name, (mostly) operated by the global organizations. The affiliation with Chinese companies is borderline fine print, white labeling would be if you had "tencent cloud" which happened to behave exactly like Azure.
- NerdSniper9001 2y ago[dead]
- flaminHotSpeedo 2y agoIt's not just tech companies, many entertainment companies (e.g. video games, media) do the same, even at the risk of alienating or angering Western customers