TikTok’s Chinese owner offers to forego stake to clinch U.S. deal – sources

Chinese company makes huge viral app for the US market, and lets everyone stoke rumors that it's a spying platform. US gov't tosses a huge subsidy at whatever domestic company can acquire it at any cost - in the interest of national defense - resulting in massive overvalued purchase. China pockets the profits. Rinse, repeat.

It was the opportunity to expand into global economic markets, with a certain perspective in mind, ballpark along the lines of Western Liberal Democracy and Economy.

The Asian countries that followed this path after WW2 were enormously succesfull: South Korea, Japan, Singapore, Hong Kong, Taiwan.

They are basically beacons of prosperity surrounded by economic mayhem.

China chose 'it's own path' - which is fine - and there are probably many advantages to the central planning early on (those other nations did that, Korea was an authoritarian state and then opened eventually, kind of 'part of a plan') - but of course the CCP has another agenda, they don't want to cede power, and China has a different historical view of itself which is not just a function of CCP propaganda.

I think it is literally at this very point wherein the 'advantage' of autocracy is starting to be a disadvantage, and that a degree of opening up would actually beneficial.

Basically - once you get the 'easy investments' done - like roads, bridges, and you succesfull rip off everyone else's IP and are 'to some extent caught up' - then the plan starts to falter. At some point, you have to 'lead' - and it takes a different kind of approach. At least in many areas, though we should not underestimate them.

There are no obvious economic choices for China now and their 'old plan' won't work. Putting Uyghers in jail, grabbing S. China sea, getting into pissing matches with India and Japan - none of this will bear fruits.

The 'Belt and Road' is actually one 'grand strategy' that a central power like China could have that America could never have (takes a couple decades of consistent vision) - but it seems that the heavy handedness and deep corruption of the system won't allow for it.

Geopolitically, people 'love to hate on America' in the press and in propaganda, but when 'push comes to shove' there is nobody who doesn't understand what side they would rather be on, both pragmatically and for the sake of the good of everyone.

Though Trump is a dufous and blow-hard (sorry), he is actually the only Western leader with the 'crazy like a fox' to take on China, and he's absolutely right to ban TikTok and other entities.

Basically - the West needs to apply trade rules with China that are exactly tit for tat: China doesn't allow foreign competition in certain areas - then we ban that. They don't allow ownership, then we ban that. They have a lot of controls over content, then we do as well - we ban everything remotely related to the Chinese state. They require foreign companies to fork over IP, and then give it to local champions - then we do as well.

Imagine how the world would react if the US required Huawei to give up all it's IP, held it up in bureaucracy for years, while they gave the IP to Cisco, and then the Treasury and the Fed financed Cisco and their international customers, while the US diplomatic corps acted both as a sales team for Cisco, and did economic espionage to thwart competitors outright?

That would be 'fair'.

There is a Canadian company [1] that lost a contract to the Canadian government for airport scanners - the Chinese bid was 25% lower. The complaint was that the Canadian company would never be allowed to bid on such a sensitive contract in China, moreover, there were state subsidies. How on earth is this fair or free trade? It's not. If China won't allow external bidders for airport security tools - we don't allow them either.

It's really almost a paradox to understand why even China has been able to maintain such a lop-sided advantage.

It started 30 years ago, when China was so poor that the West basically accepted the asymmetrical terms of trade. Like a frog in cool water that's getting warmer never thinks to jump out - Western entities have not been able to 'get it together' to change the terms. China has been acting very aggressively against anyone who speaks out, and of course, we have the useful idiots in the West who will proclaim that any antagonism towards China must be 'racism' etc..

It's just only right now starting to cross a tipping point wherein you see bits of world leaders actually starting to push back collectiely. Merkel or Trudeau might say one small thing, then they see the reaction, then others will say something else.

COVID and the China coverup has presented basically a catalyst for this, wherein it has been fully legit to publicly criticise China because they did act poorly and it cost ostensibly a lot of lives.

Though the Dems actually have not really been against Trump's China aggression, they may not be likely to spearhead it. They are just far to 'systematically naive'. Even if many Dems individually realise what needs to be done - they do not, organisationally, have the political will. Biden might say a few things here and there, but the momentum is unlikely to continue. It takes a certain kind of 'political courage' and consistently so - with a lot of people on board to re-articulate the relationship with China - I'm wary that Biden & his team will be able to do it. Their economic team I feel just won't have enough true hardball players and I don't mean 'jerks for the sake of being jerks' - I mean 'realpolitik' players who can apply the hard rules necessary with China, that would otherwise seem out of place in a modern world.

Have a quick glance at the difference between Obama/Trump trade advisors Froman [2] and Navarro [3]. Night and Day. (FYI I'm not saying I support either, just highlighting the difference)

[1] https://nationalpost.com/news/chinese-government-owned-firm-...

[2] https://en.wikipedia.org/wiki/Michael_Froman

[3] https://en.wikipedia.org/wiki/Peter_Navarro