Comment by abtinf
13 hours ago
> It is wise … to price well below cost push out other players forever
I challenge you to name a single successful example of this that isn’t state enforced.
13 hours ago
> It is wise … to price well below cost push out other players forever
I challenge you to name a single successful example of this that isn’t state enforced.
Uber
Amazon?
Amazon was wildly profitable on a unit cost basis from relatively early on. They didn’t show profits on paper because they reinvested everything into their capital buildout to reduce costs even more.
I thought Amazon was selling quite a few items at a loss to undercut competition early on?
All VC funded companies that release free or underpriced products and services, capture market share, then raise prices or enshittify?
The entire business model of VC funded tech?
Typically, VC funded firms are inventing new markets entirely.
Simply overcoming startup capital costs is not the argument being made when folks claim dumping.
They are? Most of what VC funded companies do has been done before at a smaller scale, often with less polish and at a higher price.
VC money is used to scale up, cut costs with scale, capture markets, and then usually prices go up later depending on the economics.
The Chinese state is basically just acting as a big VC fund for Chinese manufacturing industries. A VC fund with a sovereign currency and the ability to sustain burn-mode for decades.
It doesn’t always work. There are some absurd examples of Chinese waste produced this way like “ghost cities.” But when it works it works, and at tremendous scale, and they can just dominate entire industries.
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