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Isn't that discrimination?

Not really. There are disproportionately more applicants from certain countries, and the US government wants to make sure they don't flood the system. There are a limited number of "slots" every year.

When every 1 out of 7 people on this planet is either from India or China, makes me wonder what was the thought behind the limited number of "slots".

Additionally, these "slots" seems to have been placed only in the last stage of green card, there are no country specific limits for H1B applications, Green Card Application(LCA), nor the I-140 Immigration petition for Alien Worker.

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