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by cwhiz 2102 days ago
The US can, does, and should act reciprocally. In all markets where there are no restrictions in trade or commerce we treat foreign competitors fairly, as we should. In markets where US companies are not treated fairly, we should reciprocate.

In the case of China, American companies are not treated fairly. We should reciprocate. Otherwise it's a lopsided engagement that will eventually result in Chinese corporate dominance. We can't operate in China, but they can operate in the US? No way.

3 comments

100% this. It's insane to me that some people don't understand this when I discuss it with them.

Potential market share for chinese company: <population of world>

Potential market share for literally any other company: <population of world - population of china>.

Since <population of china> is ~1.4 Billion, and <population of world> is ~7.8 Billion, how does one not understand that a chinese company has an insane and unfair advantage.

> Potential market share for literally any other company: <population of world - population of china>.

China is one of the largest markets for a very large number of Western companies. If you ever go to China, chances are that the taxi that picks you up will be a Volkswagen, and the planes that take you from one city to the next will be made by Boeing or Airbus. You'll see Starbucks, McDonald's and KFC everywhere, and it's likely you'll stay in a Marriott or Hilton. If you go to the mall, you'll see foreign clothing brands everywhere, and the electronics shops will be filled with devices powered by Intel, Micron, Qualcomm, AMD, Nvidia, etc.

> It's insane to me that some people don't understand this when I discuss it with them.

What I don't get is how people believe that foreign companies don't operate in China. Have these people ever been to China?

Apple and Microsoft also operate in China.
Exactly. When the US imposes tariffs on Canadian aluminum, we expect Canada to reciprocate. When China imposes bans on foreign internet service companies, we expect India, the US, and other affected countries to reciprocate.

Failing to reciprocate will merely serve to encourage these bans and lead to a further fragmented internet.

US companies have a massive presence in China, utterly unmatched by the presence of any Chinese company in the US. It now looks more and more like large Chinese tech companies, on the other hand, are de facto banned from the United States. The most egregious case is Huawei, which the US not only banned from its own market, but is actively trying to destroy through sanctions. The US is even threatening foreign companies with sanctions unless they stop doing business with Huawei.

Has China ever done something that drastic to a US company? What $120-billion-revenue, 200k-employee US company has China ever sanctioned out of existence?

The striking thing about this trade war is how little China has retaliated against American companies. China could savage a lot of American tech companies that profit massively off the Chinese market. But the Chinese government appears to hope that the US will come to its senses at some point, and is therefore holding off for the moment.