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Why is China smashing its tech industry?

noahpinion.substack.com

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Re: Why is China smashing its tech industry?

#11

Post by caeril »

> China may simply see things differently. It’s possible that the Chinese government has decided that the profits of companies like Alibaba and Tencent come more from rents than from actual value added

Excellent observation, and I hope, for China's sake, that this is the reason.

The United States is likely in for a long-term rude awakening when it finally realizes that an economy predicated on negative-value-add activities like clicking heart icons on photos, repackaging financial securities into products with impossible-to-detangle risk profiles, advertisement and addiction optimization, and political outrage, will not remain any definition of "global superpower" for long.

Facebook and Netflix are excellent examples of companies that contribute greatly to our GDP whilst simultaneously draining our reserves of actual capital and mental health.

Re: Why is China smashing its tech industry?

#13

Post by duxup »

Seems like this is just a typical kleptocracy or some authoritarian type system at work where ultimately if it doesn't benefit those in power it has a higher risk of running into trouble when someone is seen as a possible threat / or simply because it is convenient to make room for something those in power support.

Re: Why is China smashing its tech industry?

#14

Post by saiya-jin »

I don't think they are smashing tech industry per se, just those in it who grew bold enough they thought they can actually do/say what they want, and not remain forever in servitude to those wielding real power.

Be a good boy and stay a good boy and you shall be rewarded, at least domestically. This doesn't foster international success so easily but that's another story.

Re: Why is China smashing its tech industry?

#15

Post by anotherman554 »

caeril wrote: post #11

> China may simply see things differently. It’s possible that the Chinese government has decided that the profits of companies like Alibaba and Tencent come more from rents than from actual value added Excellent observation, and I hope, for China's sake, that this is the reason. The United States is likely in for a long-term rude awakening when it finally realizes that an economy predicated on negative-value-add acti…

I'm surprised you put Netflix in there with Facebook. Do they not have television in China?

Re: Why is China smashing its tech industry?

#16

Post by toss1 »

The Western financial elites thought they were exploiting cheap Chinese labor by promoting outsourcing of manufacturing - it would make for far greater profits.

Meanwhile the Chinese were exploiting the West's myopic focus on quarterly profits to gain access to and experience in fabricating and designing the top western technology.

The scale of this strategic blunder by the Western societies will be considered of historic importance.

The analysis in this article brings that into focus as well as anything I've yet seen. If the West does not rapidly regain focus on the things that matter -- real manufacturing, engineering, and AI (not consumerist opiates for the masses) -- we are soooo screwed.

Re: Why is China smashing its tech industry?

#17

Post by duxup »

caeril wrote: post #11

> China may simply see things differently. It’s possible that the Chinese government has decided that the profits of companies like Alibaba and Tencent come more from rents than from actual value added Excellent observation, and I hope, for China's sake, that this is the reason. The United States is likely in for a long-term rude awakening when it finally realizes that an economy predicated on negative-value-add acti…

The problem is making those predictions. I'm not sure anyone out there is able to decide 'this business is a net good only do that' and come out ahead without stumbling just as much.

That's pretty much a game of predict the future, get it wrong on economy scale and you don't have anyone doing anything not according to plan... you can / will get a disaster even if you get it right here or there.

And I'm not sure that's the point anyway. China could simply ban "clicking heart icons on photos" and wipe out domestic demand outright, and as far as risky financial deals ... China seems to have no problem with that.

Re: Why is China smashing its tech industry?

#18

Post by andy_ppp »

dicomdan wrote: post #9
ru552 wrote: post #6

I think it's because they want their best and brightest working on physics, materials, technological breakthroughs, etc., instead of ad tech.

You’re giving a lot of benefit of the doubt to the dictatorship. Establishing complete control over emerging power structures (tech industry) is more likely to be their goal.

We don’t actually know why anyone in power does anything. One thing I do know is we as the West need to figure out how to come together and defend democratic and liberal values, as without them we are seriously lost. We should start by not giving any more money and technology to a Chinese state that clearly do not have our best interests at heart. I think the west is in real danger of just falling apart over the next 50 years if we lose our reasons for existing and instead spend our time arguing about cultural issues. We spend so much time right now looking inward at our small differences we can’t see the reason why our nations became worthwhile in the first place.

Re: Why is China smashing its tech industry?

#19

Post by 88840-8855 »

dicomdan wrote: post #9
ru552 wrote: post #6

I think it's because they want their best and brightest working on physics, materials, technological breakthroughs, etc., instead of ad tech.

You’re giving a lot of benefit of the doubt to the dictatorship. Establishing complete control over emerging power structures (tech industry) is more likely to be their goal.

In my eyes China is a technocratic autocracy, not a dictatorship. This would explain the hypothesis why they want their brains to work on rockets rather than ad tech, as OP assumed.
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