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RedHat requests Russian partners to suspend projects under U.S. sanctions

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Re: RedHat requests Russian partners to suspend projects under U.S. sanctions

#51
post #49

Earlier quoted context omitted.

Interesting. I had not seen that stat. Any idea how they were able to grow their market share so quickly? Obviously the government subsidies gave them the requisite funding, but what was making consumers choose Baidu over Google even before China started crippling Google?

Baidu would give you links to illegal downloads in the search results. Thus, everybody would use Baidu instead of Google.

Not only that. They had an entire MP3 search engine!

There were also in the early years language issues, and coverage issues. Internet access in/out of China is absurdly, mind bendingly expensive, due partly to all the DPI hardware they insist sits at the border. This makes crawling China from outside very hard. Conversely it also makes crawling the rest of the internet from inside harder as well, but Chinese users mostly want local content so that's no big deal, necessarily.

China was tipping the playing field in lots of ways back then, there was lots of one-sided enforcement of very vague rules. It was pretty clear which way the winds were blowing there.

Re: RedHat requests Russian partners to suspend projects under U.S. sanctions

#52
post #17

Earlier quoted context omitted.

IMHO if your only/main source of news is the western media, you get a very one sided, anti-Russian point of view. Things are really not that black and white, they almost never are in the global politics.

I have read both Western and Russian sources on the conflict. Let's just say that I find the Western sources on the matter much, much more trustworthy. It's very clear that Russia is running a propaganda campaign, which is apparently reasonably effective within Russia but less convincing when you have access to other sources of information. The Russian propaganda campaign was even fairly effective at spreading the ru…

Oh yes, the US, the exporter of freedom and democracy.

Re: RedHat requests Russian partners to suspend projects under U.S. sanctions

#53
post #20

Earlier quoted context omitted.

This was a pretty funny comment and I know its ironic, but still it is useful to point out that RedHat has a lot of products, including Middle-ware and cloud solutions that these partners resell for good money. Since Russian business is buying them, it does find them useful and thus sanctions are biting someone. Food for thought - what are the implications for Russian big-business of being forced out of the global cl…

The implications are the same as when Google pulled out of China. That is, native Russian services will overtake US competitors, and with government backing, the US companies will be unable to respond or compete. This policy, while I suspect it will hurt Russia in the short term, will ultimately only benefit domestic Russian corporations while hurting American ones. We saw this happen with Google/Baidu. Before Google…

> ...my thesis was that the Great Firewall is economically beneficial for China.

Not quite.

While protectionism can help bootstrap a domestic industry, shutting out competition doesn't always build an industry that can compete internationally. Worse yet, your industry might get involved in the political process and entrench its way of business.

Look at the Brazilian auto industry. About 50 years ago, Brazil passed import controls to boost the domestic auto industry. Today Brazil has one of the top 10 auto makers (can't remember which), and they export to...Argentina. Meanwhile Toyota--keeping in mind how big Toyota was 50 years ago--exports everywhere.

Building up the domestic market then moving to exports isn't a proven way to build up an industry. Being export-driven first, then focusing domestically is.

(I'm off topic from sanctions here, but there is a reason tariffs don't work)

Re: RedHat requests Russian partners to suspend projects under U.S. sanctions

#54
post #14

What if they don't?

From the Treasury's Website: http://www.treasury.gov/resource-center/faqs/Sanctions/Pages...

The fines for violations can be substantial. Depending on the program, criminal penalties for willful violations can include fines ranging up to $20 million and imprisonment of up to 30 years. Civil penalties for violations of the Trading With the Enemy Act can range up to $65,000 for each violation. Civil penalties for violations of the International Emergency Economic Powers Act can range up to $250,000 or twice the amount of the underlying transaction for each violation. Civil penalties for violations of the Foreign Narcotics Kingpin Designation Act can range up to $1,075,000 for each violation. [10-08-13]

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