China rushes to swap Western tech with domestic options as U.S. cracks down::China has stepped up spending to replace Western-made technology with domestic alternatives as Washington tightens curbs on high-tech exports to its rival, according to government tenders, research documents and four people familiar with the matter.
Countries seeking to develop their industry often impose import tariffs to force domestic companies to supply those goods. This “import substitution” strategy isn’t guaranteed to work; often, the domestic firms become complacent and just keep producing shoddy products. But the one region of the world where it’s arguably worked, in recent history, is East Asia. There are several examples of protected Asian firms becoming quite good, eventually turning into globally competitive champions.
Ironically, US sanctions serve essentially the same function as import tariffs (in fact, import bans). It would be funny if it ended up creating competitive Chinese lithography machine manufacturers, etc.
Can you give an example of something the US has sanctioned from China that they suddenly became extremely competent at all on their own?
China has caught up so quick because we literally give them the blueprints on some or the west’s most advanced designs, setup the factories, show them how to make it, and then go all shocked Pikachu when they just… Do that in another location too but with a different logo on it.
I don’t think there are really that many Chinese companies that rose up domestically organically. They stole their way to success and often continue to follow behind the western company they copied because they don’t have the people that made the product, just their designs to parody.
I don’t buy this “we’re digging our own grave by not allowing our most sensitive technology to be manufactured in China for them to steal it via an easy button.” If they want to steal it, make them at least try.
BYD and NIO are good examples. But you will never believe you to be proven wrong so I won’t waste my time looking for others.
BYD actively sells electric busses in the US. There was never a sanction to stop BYD or NIO (to my knowledge).
https://www.reuters.com/article/us-wiki-buffett-byd/special-report-warren-buffetts-china-car-deal-could-backfire-idUSTRE72848X20110309
And oh… There’s that
And guess what, they also give zero fucks about violating patents and stealing tech and are scary good at it. So, build it themselves or steal it, they have the the best of both worlds and America only hurts itself.