Comment by joe_mamba
4 hours ago
> but China is more protectionist than any other major economy, including recent changes in US policy.
Not true. China let Tesla set up shop in the backyard of their domestic EV industry, WITHOUT the mandatory by law 51% Chinese ownership, precisely so Tesla would light a fire under the asses of domestic players, forcing them to compete better with what was at the time, the pinnacle EV brand.
China is no longer beating us with protectionism but with innovation and manufacturing. People better wake up.
Why not both.
Protectionism that works to bolster inovation.
TSMC didn't become the world's supreme chipmaker by a laissez-faire aproach from Taiwan.
Same applies to Samsung. And oh-so-many Japanese tech ventures.
And all of them were a product of American geopolitics and tech collaboration.
Let's not pretend high tech was ever not a result of government-assisted efforts, subsidies, tarrifs, export controls, and geopolitical games.
>TSMC didn't become the world's supreme chipmaker by a laissez-faire aproach from Taiwan.
>Same applies to Samsung. And oh-so-many Japanese tech ventures.
You're missing a lot of context with these analogies. TSMC and Samsung started off in the 1950-1980s as cheap manufacturers of low margin electronic commodities the west was actively trying to get rid of in the name of protecting the environment(semi industry is poisonous) and increasing shareholder value via cheap(cough, slave, cough) labour, while giving western consumers who had options of better paid jobs access to cheaper imported stuff. It was a win-win-win situation, kind-of.
But fast forward to today, now that TSMC and Samsung have become masters of cutting edge high margin manufacturing, and the west finds itself exposed to lack of said cutting edge manufacturing at home, they're starting to twist their arms to get the know-how and infrastructure that they missed out on back on-shore. Had the west know the table would turn like this they probably would have acted differently.
Same with cars. German OEMs like Mercedes that were the pinnacle of auto tech especially when it came to tings like safety and self driving/crash avoidance, but got greedy and were more than happy to outsource electronics and ECU development and manufacturing to the lowest bidder in the name of shareholder value, but over time they lost vertical integration and access to inhouse critical high end technologies that made them valuable over the competition. Now China used that outsourced electronics industry to develop its own electronic auto tech and its vertical integration supply chain to beat the Germans.
The highest margin item in an ICE car was always the engine at which the Germans were the best at, and China could not catch up. Fast forward to today, in an EV, the highest margin items are the battery, self driving stack and supporting AI silicon, almost none of which come from Europe, meaning German OEMs are losing out on innovations and profits big time, becoming only system integrators of US and Chinese sourced parts on top of which they slap a badge hoping the consumers will value it more than Chinese badges because "heritage and tradition". They are super fucked.