Comment by betaby
7 hours ago
> wiping out competition by undercutting them using state subsidies
The same tactic is in the USA. Like every new AI datacenter has ~10 tax waiver + explicit subsidies + favorable loans, etc, etc.
7 hours ago
> wiping out competition by undercutting them using state subsidies
The same tactic is in the USA. Like every new AI datacenter has ~10 tax waiver + explicit subsidies + favorable loans, etc, etc.
These are done with the intention of getting kickbacks, not wiping out competition
Not even mentioning the many instances where US corporate interests were defended and advanced by US military force abroad.
As always, the US has a government removing red tape to foster innovation, while China has a regime, unfairly picking winners, to hurt and subvert the West.
this is not an accurate picture of Chinese industrial policy. In fact, you could argue they have the opposite problem. Their industrial policy encourages too many companies to enter a space, where the resulting competition kills off profit margins for whichever companies end up surviving until the end. This is exactly what we end up seeing with extremely cheap Chinese goods.
If china anointed one company per sector, they would have no reason to be so cost competitive globally. There would be no structural cause for Chinese products to outcompete the rest of the world. You can see some of this in the US, where these kinds of anointed companies exist (say e.g. Boeing/other defense contractors, at least post the 90's). They are (famously) not particularly cost competitive. This is also exactly what you'd expect economically.
Please read up on what's really going on inside China when it comes to industrial policy and innovation. Barry Naughton has a nice series of books and papers that might disperse some of your incorrect preconceptions.
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