Several things occur to me. First note that I am not anti-China or pro-US. I like certain ideas, and I don’t associate those ideas with any country, in particular.
Now let’s take make some comparisons. Tencent has done really well for itself by leaning into innovation and focusing on non-US markets. But companies like Huawei and TikTok run into issues because they try to tap into sanctioned markets, or the surveillance-entertainment industry. Companies that do well focus on non-Western markets, and some Chinese companies still make the list of consumer magazines in western markets, so their products get sold, regardless. So there’s huge potential here to develop a home grown industry in consumer electronics and devices, which still need many areas of innovation. Even if you filter out the western countries, you have 20-25T (that’s a T!) market to tap into based on some rough estimates of consumer spending.
My question is a simple one: if my country has top talent, why would I want it to go elsewhere, and not work in my country? I’d retain it instead for building a strong economy, improving home industries, and depriving my detractors of my home grown talent. Youth unemployment is really high in China right now. Why not fund some startups, or whatever to get folks into building and selling shit. Again, western markets aren’t the only ones with money to spend.
Maybe the answer is geopolitical, that it’s better not to waste your time building things at home. Just go somewhere else where you tap into an industry that’s not going to face issues with whatever you sell. Or the answer is that you can fool your detractors into replacing their home grown talent with yours. So, it kind of subverts the whole “immigration causes brain drain” thing. Now that’s a real innovation.
Now let’s take make some comparisons. Tencent has done really well for itself by leaning into innovation and focusing on non-US markets. But companies like Huawei and TikTok run into issues because they try to tap into sanctioned markets, or the surveillance-entertainment industry. Companies that do well focus on non-Western markets, and some Chinese companies still make the list of consumer magazines in western markets, so their products get sold, regardless. So there’s huge potential here to develop a home grown industry in consumer electronics and devices, which still need many areas of innovation. Even if you filter out the western countries, you have 20-25T (that’s a T!) market to tap into based on some rough estimates of consumer spending.
My question is a simple one: if my country has top talent, why would I want it to go elsewhere, and not work in my country? I’d retain it instead for building a strong economy, improving home industries, and depriving my detractors of my home grown talent. Youth unemployment is really high in China right now. Why not fund some startups, or whatever to get folks into building and selling shit. Again, western markets aren’t the only ones with money to spend.
Maybe the answer is geopolitical, that it’s better not to waste your time building things at home. Just go somewhere else where you tap into an industry that’s not going to face issues with whatever you sell. Or the answer is that you can fool your detractors into replacing their home grown talent with yours. So, it kind of subverts the whole “immigration causes brain drain” thing. Now that’s a real innovation.