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The argument (which has its own pros and cons) is that the Chinese vendors are not competing fair and square. The governmental/industrial coordination in China
by kasey_junk 2mo ago
The argument (which has its own pros and cons) is that the Chinese vendors are not competing fair and square.
The governmental/industrial coordination in China is quite literally un comparable to Western style industries so the western governments feel they have to protect their local industries.
This definitely hurts consumers in the short term, so the whole argument is about long term impacts.
- inigyou 2mo agoNothing stops western governments from adopting the tactics that work well.
- kasey_junk 2mo agoWestern populations do.
- inigyou 2mo agoIf western populations are so committed to failure, then failure is deserved.
- kasey_junk 2mo agoIf your definition of success and failure is based on how well your country motivates the production of consumer goods, I suppose that’s true.
- epolanski 2mo agoThis is bs. Both German and Italian auto industries e.g. have received countless money. FIAT alone got an equivalent of 200B+ euros in state/regional aid in Italy alone (that's ignoring the generous incentives of all the countries they opened plants).
- kasey_junk 2mo agoThrough capital and currency controls, the yuan is structurally undervalued between 9 and 25% depending on your source. That’s a direct transfer from the Chinese consumer to the Chinese exporter. That’s hundreds of billions of dollars before we get to cash subsidies, IP subsidies, central direction, property right differences etc. The Chinese approach is so different than the western approach that there isn’t broad consensus on how to quantify it, but it’s for sure more than the direct subsidies that something like the WTO was built to negotiate.