> They’ve been moving up the food chain for 30 years.
Organically, sure. If a company has an opportunity to build higher value components profitably it would likely take it. But that is slow.
What I mean is state pouring massive amounts of money, every year for many years, into as-is unprofitable areas to build not just the products but education, infrastructure and support needed for the local companies to become competitive.
WSJ had a good article in the last few days on China's containership building which AFACR said the government poured over 10 billion at the time to become the world's shipbuilder. This is the time of effort I am talking about and, as far as I know, it is fairly new.
$10B is a drop in the ocean. If all it took was a bit of money the US could have stayed ahead. For perspective, they’ve earmarked $800B for clean energy subsidies, that AI fund is $500B.
You can’t buy back entire supply chains and a workforce, it takes generations.
It was 10B 20 years ago when China was significantly poorer. And it is not just money. It is planning, oversight and various care and feeding activities (china-style, including executing officials for corruption) for almost 10 years before that part of the system became mature and economically self-supporting.
Organically, sure. If a company has an opportunity to build higher value components profitably it would likely take it. But that is slow.
What I mean is state pouring massive amounts of money, every year for many years, into as-is unprofitable areas to build not just the products but education, infrastructure and support needed for the local companies to become competitive.
WSJ had a good article in the last few days on China's containership building which AFACR said the government poured over 10 billion at the time to become the world's shipbuilder. This is the time of effort I am talking about and, as far as I know, it is fairly new.