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by honeybee93
2581 days ago
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China limits all foreign companies from accessing it's market. The true reason is to provide a safe heaven to allow local companies develop it's own technology and capability before killed off by foreign companies. During 80s when China is start to open up the market, China has literally no private enterprises with good capability on it's own. Foreign companies from US and Europe have too advanced of technology and scale simply because they have been developing much longer while China was being war ravaged. These companies would easily take over the china market and kill any local enterprises. Look at the affect of the ban, China now as pretty good technology on it's own and local companies with the scale that can compete with foreign companies. Foreign companies now entering China find difficulty partly because of the regulatory environment but also because of local competition is much stronger. I would argue that Apple sales decrease in China is not mainly from regulation but competition from Huawei xiaomi and oppo. Now contrast this with Europe and Canada, especially in the tech market, no one has home grown technology companies that are big enough to compete with the US. Many homegrown companies went away because of it cannot compete with the US. Is would surely damage local economy right? I think the advantages and disadvantages to free market must be carefully balanced. |
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