After absorbing hard lessons from India, China is redrawing the boundary between selling products, exporting capacity, and leaking the industrial capability behind its manufacturing power.
From a historical perspective, technology transfer is inevitable and there is no need to avoid it. Of course, areas involving national security are an exception, but national security must have a clear boundary. As China's population continues to decline, China cannot forever maintain 35% of the world's manufacturing output. Rather than preventing this transfer, it is better to let other countries integrate into one's own industrial chain. This will make the industrial chain centered on China's standards and systems larger in scale and more efficient. Building a community with a shared future and sharing prosperity with the world is a sustainable path. Instead of fearing competition and trying to prevent it from happening, it is better to strengthen oneself.
My sentiments exactly. China should not take the path that is already well trodden in the USA. Its through generosity that one winds friends and influence and gains the trust that will enable others to concentrate on producing butter rather than guns. I am an Australian who thinks that the ARKUS scheme is an obscenity. Fighting trade wars is anathema to me.
I believe this to be a huge blunder on China’s part to restrict technology transfer. Why? Look at how much control the US has over its allies’ technology - a lot of which has to do with technology transfer.
The US could cut off high end semiconductors to China simply because all the countries in that sector are part of American supply chains, giving the US power over the technology.
China could have this sort over power over India too. Instead, by issuing blanket restrictions, China has made India double down on technology transfer, only this time from countries that are willing to find alternative suppliers. As an example, India is using Japanese technology to build up ingot and wafer capacity in the solar supply chain. China will have little, if any, control over this.
The same is being applied from batteries to shipbuilding, where other countries seeking to reduce their China dependence are building up India’s supply chains. This is does not bode well for China’s future.
From a historical perspective, technology transfer is inevitable and there is no need to avoid it. Of course, areas involving national security are an exception, but national security must have a clear boundary. As China's population continues to decline, China cannot forever maintain 35% of the world's manufacturing output. Rather than preventing this transfer, it is better to let other countries integrate into one's own industrial chain. This will make the industrial chain centered on China's standards and systems larger in scale and more efficient. Building a community with a shared future and sharing prosperity with the world is a sustainable path. Instead of fearing competition and trying to prevent it from happening, it is better to strengthen oneself.
My sentiments exactly. China should not take the path that is already well trodden in the USA. Its through generosity that one winds friends and influence and gains the trust that will enable others to concentrate on producing butter rather than guns. I am an Australian who thinks that the ARKUS scheme is an obscenity. Fighting trade wars is anathema to me.
I believe this to be a huge blunder on China’s part to restrict technology transfer. Why? Look at how much control the US has over its allies’ technology - a lot of which has to do with technology transfer.
The US could cut off high end semiconductors to China simply because all the countries in that sector are part of American supply chains, giving the US power over the technology.
China could have this sort over power over India too. Instead, by issuing blanket restrictions, China has made India double down on technology transfer, only this time from countries that are willing to find alternative suppliers. As an example, India is using Japanese technology to build up ingot and wafer capacity in the solar supply chain. China will have little, if any, control over this.
The same is being applied from batteries to shipbuilding, where other countries seeking to reduce their China dependence are building up India’s supply chains. This is does not bode well for China’s future.