China Rules – The Land That Failed to Fail
nytimes.com
nytimes.com
Here's a really good documentary on how much engineering went into Japan's bullet trains.
https://www.youtube.com/watch?v=xA4aaSzqT9s
To see all this being stolen by someone who just walked in, pretending to make a deal, is so painful.
I mean, if you want to talk about pain, a lot of Chinese people see Japan primarily as the country responsible for the Rape of Nanking [0], among other atrocities. It doesn't make IP theft justified, but it probably puts it into context for why the Chinese government, people, or companies would have very little compunction against doing it.
[0]: https://en.wikipedia.org/wiki/Nanjing_Massacre
EDIT - wow, people here really hate China. Is it so hard to see human factors affecting behaviors?
Really, when you get under all the BS from people who've been propagandized against China, they believe America should win and China should lose. Of course China isn't going to agree to this, and they're big enough that they don't have to. Might makes right, until China becomes the mightiest global economic power.
Alright, let's torture your false equivalence a little more: you shouldn't have privacy because that's prevention of the free exchange of information.
Even Adam Smith regarded IP laws to be an 'Unessecary Evil'. Even in SV, an engineer works for one company, learns the tricks of the trade, and then takes that knowledge to another. This is business as usual, and it's a critical ingredient to Silicon Valley's success, and it's the secret to the success of many city states and industrial hubs all throughout history.
From PIIE [1],
> Overlooked are the data that suggest the popular narrative exaggerates the magnitude of China's forced technology transfer and theft and does not allow for the possibility that China's protection of intellectual property is improving rather than worsening. […] Since the subsidiaries of these holding companies using the licensed foreign technology are located in other jurisdictions worldwide, China probably ranks second globally in the magnitude of licensing fees paid for technology used within national borders.
From MMC's Brink [2]
> In the late 1980s and throughout the 1990s, Western firms such as Apple and Intel made large profits by investing in China to take advantage of the cheap labor, often at terrific human cost. As China’s economy grew and the population became wealthier, Western firms were then able to profit by selling their products back to the wealthier children of the same labor force that made them. The Chinese government saw this happening and wanted Western firms benefiting from the Chinese market to give something back. It established a system of approving foreign investments on the condition that the businesses involved agreed to partner with local firms and transfer knowledge and skills to the local Chinese market.
and [3]
> …Paul Goldstein, an IP expert at Stanford. Instead, it’s given away in negotiations with Chinese businesses, officials and investors.
[1] https://piie.com/blogs/china-economic-watch/china-forced-tec... [2] https://www.brinknews.com/why-china-is-a-leader-in-intellect... [3] https://www.brinknews.com/how-much-american-ip-is-china-stea...
They would have stolen the tech from anyone else, Japanese or not.
e.g. https://zhuanlan.zhihu.com/p/29783732
Edit: elaboration
You're right, I wasn't.
French Polynesia could probably never do this kind of thing to Japan for example.
As I see it if you don't like China politics don't do business with them and do not involve the army(though we all know some big countries like to get involved in smaller countries politics and force laws).
My point is that it sucks that IP and copyright laws are forced by the countries with big armies, the big countries impose their values on the most small countries.
Just a nitpick but French Polynesia, being French territory, is clearly not averse to stealing technology[0]. On the topic of high-speed trains precisely, I certainly would not be surprised if the TGV had "borrowed" some features from Japan's shinkansen.
[0] https://www.france24.com/en/20110104-france-industrial-espio...
But things got escalated.
So we are in effect, back to the pre-intelectual-property world. The moral connotations of IP theft hardly apply.
(To anyone who's prepared to invoke 'whataboutism' or whatever, note that my point is that the US's moral outrage is hypocritical, given its extensive history of (much more violent) theft. It's not about whether "IP theft" is morally permissible.)
Also my interpretation of the parent post is that we should not attribute China’s success to their authoritarian government without considering IP theft as a major factor.
America had slavery, but unlike untold other empires and large countries, it ended it. It owes very little if any part of its port-1865 prosperity to the work of slaves, given the destruction wrought by the Civil War.
https://en.wikipedia.org/wiki/Taxila
This idea could propel mankind into the future faster than the steal, iterate, then lock down IP method we are using today.
However, I fail to find the mention in that Wikipedia article (am I not looking enough?)
So they steal bullet trains etc and we stole steam tech etc. I guess it just indicates that it's foolish for a nation to pay for technology if it's poor.
I wonder are there any examples of poor nations in history that actually paid market prices for technology, and became super powers? (Or at least maybe regional powers?)
Yet third time's a charm!
I'm wondering if anyone has ever actually paid for the stuff they need?
Also when it comes to private persons, I find many examples of the currently wealthy 1% having done things that elevated and cemented their status that are no longer legal today. I dare say most.
Its not just that the laws changed and they coincidentally were a common practice at the time, its that those were the particular nuanced laws they were using.
Everything from selling securities door to door 100 years ago, to self-benefitting charities using overlooked and accidental combinations of tax code.
https://www.itif.org/publications/2015/09/17/false-promises-...
This tactic works when it comes to mercantilist trade policy (see also: new U.S. tariffs, and recent EU complaint against China in the WTO). Less effective when it comes to stemming IP theft.
Also he looks so YOUNG in that video
It's the sure fire way to get ahead in any game.
Just because an ego is bruised or you want a better world doesn't mean you need to project that through downvoting, it is effectively censorship when you do that
I was looking for a counterpoint to that. The "any random country" comparison wasn't what I was going for
Anyway, I nominate Germany as a counterpoint to your thesis. Germany's greatness has not been built on theft, but on hard work and skill of the Germans. When Germany tried theft, or rather conquest, they failed badly, but when they got on with developing their own country rather than war, they succeeded pretty spectacularly.
Do you agree...?
Others said the Marshall Plan was a subsidy and they also defaulted in their debt
So I would have agreed 22 hours ago but not now
Western liberals say ignoring the environment will catch up to them. Western conservatives say you can't ignore fiscal discipline forever. So far both are wrong.
These go along with IP as things China is ignoring. They seem to be calling BS on all forms of large scale socioeconomic restraint that might restrain GDP growth. Strap a brick to the accelerator and go.
It's an interesting experiment and as others have pointed out not that different from America in the 19th century.
A lot of the “China can’t fail” rhetoric suggests it’s been a 40-50yr trend that defies all critics, but it’s only in the last 10-20 years we’ve seen a rise of this insane wealth, massive debt fueled economy, reverse in liberalization trends etc.
> China is the world's leading country in electricity production from renewable energy sources, with over double the generation of the second-ranking country, the United States.
Micron being the latest victim.
https://www.wired.com/story/us-accuses-chinese-stealing-micr...
It is interesting that an agrarian society can transform and innovate itself in approx 10-15 years to become the world leader in Technology, etc. They also never seem to run out of funds to drive anything they do?
If IP theft (or other dishonest behavior) is too extreme, eventually that country would lose foreign business. This is what happened in Russia soon after Gorbachev opened it up: many foreign companies and investors gave up their attempts to enter Russia because they could not handle the amount of trickery being done to them. It took many years for Russia to fix that to some extent.
The fact that foreign businesses are still very much present and expand in China means that IP theft and other deceitful practices are within the limits of accepted business risks.
- The amount spend by gov and private sector on education is insane; high literacy rate is an amazing accomplishment.
- Requiring foreign firms to give up technologies for market access is more or less the embodiment of this idea.
- IP theft is similar, you're trading a reputational hit for the means of growth.
The big variable here is growth, the social contract between China and it's citizens seems to be one of: we'll provide you with massive growth in exchange for privacy and lack of control. There was plenty of space for growth and millions of Chinese moved to the middle class, but once growth slows will they demand more? Has the government clamped down on speech already been too effective to derail a liberalization movement?
At the end of the day, I think China is just too large to not outpace the United States as a global leader. China has learned how to grow from all the Western Powers and has an incredible amount of greenfield to keep going.
But all countries are also same in the way that we are all humans.
It's one thing to try to balance authorities and free market policies in Venezuela, or even Russia, but China has a massive advantage in population and strength of the economy. The USSR was no where near where China is even at the height of its powers. China is moving more into a service based economy and has plans to become a major importer. Xi honestly IS the biggest threat but relatively speaking, there have been really successful nation-states that have similar consolidated power and have been historically successful.
I think we are way to sure of ourselves that China will fail with this model, but so far they are doing an excellent job all things considered.
Which ones were benevolent?
>> Which ones were benevolent?
> Don't be ridiculous.
What's so ridiculous about asking you to name the two Chinese leaders who you view as benevolent?
In terms of benevolent, probably Deng Xiaoping and Xi Jinping [at least, Xi hasn't made any major mistakes yet].
Waiting, crossing fingers, thinking wishfully, hoping, and acting upon it. China is doing something right..
or maybe West is indeed helping the Chinese success?
I could totally see a future where America gets embroiled in a civil war and China's experiencing a sort of "island syndrome" ala Japan where all their tech was advanced at one point and now is stuck in time.
Are they really the brightest if they can't find a way to make a high wage without working in advertising? :)
Also LOL at calling advertising, a scummy but legal industry "corrupt" in a conversation about China
https://web.archive.org/web/20081210040251/http://www.csis.o...
Uh, ok? Sorry but your reply is a bit of a non-sequitur, I'm not clear where you're going with this point.
Is that why the west invested trillions of dollars in china over the past 4 decades? I expect very little from the nytimes, but this is a new low for them.
Did the nytimes assume Gordon Chang is "the west" and then run with that false premise?
If anything, we have gambled our future and put all our eggs in one basket - china. We looked to china to be the manufacturer of the world. Then during the financial crisis, we looked to china to increase debt to save the world economy from collapse. Now we are looking to china to be the consumer of the world to boost the world economy.
The west helped create modern china. It was our money, resources, expertise, technology and markets that helped create modern china. Why would we invest trillions in a country expecting it to fail?
From hollywood to the NBA to silicon valley to wall street to agriculture, "the west" is looking to china to be the source of growth for decades to come. Or maybe I'm missing something?
I think the expectation was that it's political system would fail, not the country itself, and a liberal democracy would emerge from that failure. Much of the investment was sanctioned by the (now disproven) idea that capitalism invariably brings democracy and liberalization with it.
which I can really recommend it has given me a completely new appreciation for the term competition.
Western economists, politicians, and citizens are having a hard time realizing that the bigger rigid bureaucracy is in the west. Whether you are trying to develop housing in the bay area, or set up a new factory, or build mass transit, the bureaucracy tax of time and dollars is our biggest handicap. Things end up costing too much, taking to long, and being inferior.
California passed the high speed rail proposition ten years ago in 2008, we have spent billions, and have zero working miles of rail complete. Since 2008, China has built 15,500 miles of high speed rail.
There is no doubt this is a piece that is trying to rally around a very unlikely scenario where the US administration will give into Chinese belligerence and back off on trade tariffs at the end of November when Trump and Xi meets - despite Trump, Pence, the current Trump administration, and even prominent Democrats' hardline against China. A trade war which the US is winning strongly.
A couple of things stands out from the article: reminiscience about the great Chinese growth in the last 30 years, and "The party appears to enjoy broad public support, and many around the world are convinced that Mr. Trump’s America is in retreat while China’s moment is just beginning." That last thing is the conclusion drawn out of nowhere, and very incorrect. US has been growing 4% this year, while every other major economies around the world has suffered. https://www.cnn.com/2018/11/14/economy/economy-global-slowdo...
The author cleverly avoids talking about China's now: slumping economy, the ever increasing local government/corporate/personal debt, export falling 30% year-over-year in Guangdong, the top exporting province https://sinoinsider.com/2018/10/risk-watch-declining-export-..., potential tariff on all of China's import into US, the great military alliance between US, Japan, Australia, India and several other Southeast Asian countries against China in South Asia Sea, western ambassadors demanding answers to China's imprisonment of Muslim minority https://www.businessinsider.com/china-slams-western-ambassad..., and last, how private companies which drove the innovations in china are dying out to state enterprises https://www.bloomberg.com/news/articles/2018-10-24/china-s-s....
EDIT: clarified author
Jonathan Ansfield and Keith Bradsher contributed reporting from Beijing. Claire Fu and Iris Zhao contributed research from Beijing, and Carolyn Zhang from Shanghai.
Or are you saying they are secretly working for the WashPo?
And relax, as Avenue Q states: everybody's a little bit racist! But discussion on HN is meant to be substantiative, and part of that is trying to avoid ad-hominem attacks with a racist tint.
Export surplus is falling... that's a very different animal.
If you're wondering about the American soybean farmers that China has targeted as a response, you'll see that they are... simply looking at the commodities futures markets and making rational economic decisions [1]. I'm sure that this is not at all what China was hoping to accomplish.
[1] https://www.chicagotribune.com/business/ct-biz-soybeans-chin...
The bags farmers are using are not new technology, they have been around since the 1990s: https://extension.purdue.edu/article/6963
> The party appears to enjoy broad public support, and many around the world are convinced that Mr. Trump’s America is in retreat while China’s moment is just beginning.
> Then again, China has a way of defying expectations.
In other words: China seems to be doing well but then again they could totally fail
The author is clearly uncertain of China’s future, not too bearish but clearly not bullish either. He even makes reference to Xi’s crackdowns and return to autocracy as being troubling signs, not sure signs of success.