> Aren't consumers benefiting from this practice by getting better cheaper models as a result?
Aren't consumers benefiting from cheap chinese batteries, EVs, and drones?
Depends on what country you live in I suppose, but likely a spectrum of yes than any outright no. For example, Chinese EVs are using a different battery chemistry and not putting demand pressure on the more expensive chemistry western manufacturers use
They are a petroleum products importer, so it’s a big win for them.
Routers have now gotten the same treatment. So yes, consumers have been historicaly benefiting from all these things, and those benefits are about to evaporate as we lose access to cheap and high quality Chinese products before any domestic equivalents exist. And IIUC banning the use of Chinese LLMs for consumers and/or businesses in the US is now being discussed at the highest levels of government, with the "encouragement" of US AI firms.
I don't think any of these people care that America consumers are increasingly going to feel like they're living in a sanctioned country. It's all about the defense and b2b segments.
I mean not really. A quadrocopter is a remarkably simple thing made out of extremely generic parts: 4 DC motors (and ESCs), a radio, a computer, a battery and an inertial measurement unit. Anybody with a rudimentary amount of electronics knowledge can build one, the components are extremely widely used. The most unique parts about them are the frame and propellers, which are pretty easy to fabricate.
Source: I've been flying R/C aircraft of various types for over 30 years. Last year I built, I think, at least 7 FPV drones (a mix of fixed wings and quads).
The banning or effective banning through tariffs of products like EVs is a pretty dumb economic strategy that rarely works out in the long-run.
Yes?
Not remembering my economic theory here, but it is likely more efficient/expensive to simply have the federal government cut checks to our moribund industrial sector companies and let consumers benefit from modern technology.
Cut GM/Ford/Stellantis a $20B check each, let consumers save (conservatively) $200B annually on new car purchases + downstream benefits. Huge win for consumers & taxpayers.
If it's not worth subsidizing explicitly like this, then we also should not subsidize by banning Chinese imports, which also ensures US drivers have less access to modern vehicles. (And downstream ensures US auto designers are less likely to have had contact with modern vehicles, making it less likely that they will be able to design future generations well.)
I don't get why USA wants to keep losing money on sustaining failed uncompetitive zombie companies. The companies that decided to lose long term competence for short-term gains need to go bankrupt (you've had EV-1, but decided to drill, baby, drill). The greedy shareholders that rewarded destructive value extraction need to lose money, instead of getting a soft exit at taxpayers' expense.
If you want to give a subsidy, give it to something that will modernize and expand manufacturing, not to prolong death of companies whose entire R&D strategy is inventing new subscriptions for old car components.
The Chinese are open-sourcing these models - meaning they are literally giving them away. That's starkly different behaviour from that which drove patents and copyright.
There are all sorts of other differences too. If you develop a drug or publish a novel (which are respectively areas where patents and copyright have strong justification), you have to kiss a lot of toads before you get a prince. Once you have a potential prince drug, it takes years and billions to get it into the market. But right now, AI labs are seemingly churning out new prince models almost weekly, on hardware that will be obsoleted in a few years by hardware that makes finding princes faster and cheaper. In fact they rent the hardware, as Moonshot apparently did here.
When innovation is happening at that rate, patents and other IP restrictions just slow things down. If AI patents are aggressively granted and enforced in the USA, I suspect the outcome would be the same as batteries. China swept the market with LFP, and one reason was because while the USA developed them, there was no competition forcing the manufacturing price down because in the USA the patents weren't re-licensed cheaply. China had the foresight to secure a deal allowing them to develop and sell LFP domestically royalty-free. Natural competition within the domestic market took care of the rest. It looks like they are using a similar strategy for AI.
To me it looks like they have come up with a better formula for using capitalism to drive innovation than the one the USA is using.
cf https://www.reddit.com/r/codex/comments/1uyj6pq/kimi_k3_is_1...