China offers 5-year tax breaks to chip makers, Sw Developers to bolster industry | Hacker News Reader

China offers 5-year tax breaks to chip makers, Sw Developers to bolster industry

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18 pointsmolteanu6 comments

US bans will only serve to motivate the Chinese to work harder to develop its own independent technology ecosystem. It is painful today and tomorrow but it will be a boon for the Chinese in the long run. By looking at the long history or rising power vs established power, established powers always try to sabotage rising powers in order to maintain their status as long as possible. Eventually, rising powers will succeed. It has happened with the UK overtaking the Spaniards, the US overtaking the UK, the Germans overtaking the British before WWI. The US is desperate to delay the painful process.

If it was all so cut and dried as all that, China's own protectionism should have destroyed them.

For developing countries, moderate protections of its own industries are needed to foster their own. However, as they grow stronger, they are gradually opening up their markets. China is just doing that. Baby birds are protected by their mothers when they are little. Once they grow up, they should be able to fly and face challenges themselves. China is opening up, at a slow pace admittedly.

The US are indeed only trying to delay the inevitable.

It's also a watershed moment for China (and the world) that the US will not hesitate to weaponise the overwhelming technological power they yield.

Clearly no country can accept this situation so I'm guessing that the issue has gone at the top of priorities for China and that the policy in government is now to remedy this whatever it takes and whatever it costs.

Huawei was hurt for sure. So is the US. Take a look at all the US chip stocks. They have gone down precipitously since Huawei was banned. The combined loss they took is larger than imposed on Huawei. Huawei getting hurt is only a temporary pain in the process. It is like the Sputnik moment for Chinese tech industry. China has realized this and is working hard to foster its own tech industry. China already has its own internet universe. Chip universe is only a question of time.

To my knowledge, China had already been running the scheme giving semiconductor companies 5 tax free years since 2012.

They were either obliged to run from some special designated industrial parks, or something like that thought.

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