China's investment into hard-tech (semiconductors, etc) doesn't not mean it can't also allow for the growth of consumer tech. For instance, we subsidize farming to keep it state-side but we don't prevent food processing companies from growing and consolidating.
Maybe the point here is that the government in china wants to always be between the consumer and the service, which makes a lot more sense. Maybe Alibaba and the like have a connection to every person and the gov'ment is threatened by that relationship.
There are many possibilities but I don't necessarily agree with the conclusion of the author: that to grow their hard-tech industry, they have to punish consumer tech.
Maybe the point here is that the government in china wants to always be between the consumer and the service, which makes a lot more sense. Maybe Alibaba and the like have a connection to every person and the gov'ment is threatened by that relationship.
There are many possibilities but I don't necessarily agree with the conclusion of the author: that to grow their hard-tech industry, they have to punish consumer tech.