Chinese Economics Thread

[GZDRefugee]

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[FriedRiceNSpice]

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This is real reason why the US wants to shut down TikTok. Everything you here about CPC leveraging TikTok for influence and CPC accessing personal data is just BS intended for consumption by the masses.

 

[Maikeru]

This is real reason why the US wants to shut down TikTok. Everything you here about CPC leveraging TikTok for influence and CPC accessing personal data is just BS intended for consumption by the masses.

Yup. And I suspect the real reason for the semiconductor and other tech sanctions. To keep the profits and share prices of the "Magnificent Seven" up.

 

[TK3600]

This has been the recipe for every successful industrialization and development program ever since. Japan, South Korea, and more recently China, have all relied on this model to successfully industrialized and modernize their economies.

The plan is reliant on country make the product eventually after import control. Not happening in US today. Happens in China.

 

[FriedRiceNSpice]

Yup. And I suspect the real reason for the semiconductor and other tech sanctions. To keep the profits and share prices of the "Magnificent Seven" up.

No need to suspect, that is definitely the reason. US does not want competition in high margin, high value add, high tech industries that US companies dominate/monopolize in. And while that may seem unfair/dirty, we should be under no illusion that if the situation was reversed, that China (or any under independent major power) wouldn't be doing the same. This is the reality of economic competition between great powers. Don't let the last half century of illusionary "free trade" fool you. And I strongly believe we will be able to see that occurring within the next two decades.

 

[henrik]

No need to suspect, that is definitely the reason. US does not want competition in high margin, high value add, high tech industries that US companies dominate/monopolize in. And while that may seem unfair/dirty, we should be under no illusion that if the situation was reversed, that China (or any under independent major power) wouldn't be doing the same. This is the reality of economic competition between great powers. Don't let the last half century of illusionary "free trade" fool you. And I strongly believe we will be able to see that occurring within the next two decades.

China is different from the US, which is based on invasion and imperialism.

 

[supersnoop]

Yup. And I suspect the real reason for the semiconductor and other tech sanctions. To keep the profits and share prices of the "Magnificent Seven" up.

I don’t think so, the tech companies actually don’t like this because they know how short term it is. Jensen Huang could sell a lot more chips without the ban. Apple is facing long term headwinds thanks to renewed competition from Huawei. Intel, AMD, TI are all threatened. Only Meta and Google really benefit without huge backlash. Even then Google needs Chinese device makers.

 

[gelgoog]

I don’t think so, the tech companies actually don’t like this because they know how short term it is. Jensen Huang could sell a lot more chips without the ban. Apple is facing long term headwinds thanks to renewed competition from Huawei. Intel, AMD, TI are all threatened. Only Meta and Google really benefit without huge backlash. Even then Google needs Chinese device makers.

I do not think you are looking at the whole picture here. NVIDIA still has little competition from China. So of course they just want market access. Apple is treated by consumers as a luxury product and they produce in China. They also want access to new high and middle income consumers in China. But those are not the only US semiconductor companies. Qualcomm stands to lose a lot of money if Huawei gained an edge in 5G technology and started displacing their own modems and other technology. Micron also mostly competes at the bottom level of the memory market and would be most threatened by Chinese memory makers.

For companies like Meta or Google the Chinese hardware existence is inconsequential. Their objection would be against Chinese software like TikTok.

 

[henrik]

I do not think you are looking at the whole picture here. NVIDIA still has little competition from China. So of course they just want market access. Apple is treated by consumers as a luxury product and they produce in China. They also want access to new high and middle income consumers in China. But those are not the only US semiconductor companies. Qualcomm stands to lose a lot of money if Huawei gained an edge in 5G technology and started displacing their own modems and other technology. Micron also mostly competes at the bottom level of the memory market and would be most threatened by Chinese memory makers.

For companies like Meta or Google the Chinese hardware existence is inconsequential. Their objection would be against Chinese software like TikTok.

Chinese apps like Temu and Shein are paying a lot for advertisement on Meta and Google platforms, but those are for customers outside of China.

 

[Phead128]

US is trying to steal TikTok's proprietary AI algorithm via a forced sale to an American company, ostensibly to protect against foreign propaganda. If you can't innovate as well as the Chinese, then copy and steal their IP.