Comment by kennywinker
3 hours ago
> Great! Here is a few million go make AI.
So how is this different from the US? It’s VC’s making the choices not the gov - seems little different. Maybe scale?
> They're not unfamiliar with burning tens of billions to get a few hundred million of value.
The chinese economy seems like proof this is a valid strategy that pays off in aggregate. Yet when gov here attempts any kind of economic development policy it seems largely unpopular.
> you are not competing, because they are just burning daddies money
So like the american defense industry then?
VC's gauge what the market wants, the Chinese government is one person who decides what he wants.
One of these is grossly inefficient compared to the other, despite the final outcome looking similar from some angles.
"Capitalism good, but state capitalism bad".
Not only are US VCs dumping billions in shitty Bluetooth connected dog collars and other kinds of crap, apparently according to you because that's "what the market wants", it's also an incredibly stupid reading of how the Chinese government works.
They target specific industries that are important, according to them, like solar panels, batteries, cars, etc. They then dump billions into a bunch of companies, and see which ones come out alive and on top.
As it stands, it's been pretty accurate for many things, and has made them market leaders on many, many things. But sure, jerk off the VC model, after all YC thinks the market wants... AIs and ERPs. Woo.