|
This, like the linked article by the same author ("America Doesn't Have the Stomach for Growth") raises a few interesting points but doesn't have a strong central thesis. If I could summarize this article, the main thrusts are 1) it's too technically complex, 2) the margins are thin, 3) there are strong regulatory requirements, and 4) opportunity cost vs. AI and chips. Anyone that knows Chinese modern manufacturing knows that is an incredibly weak argument overall. On technical complexity, China _has_ a more technically complex engine, totally domestic! The WS-15 is a _more_ difficult engine to make. It runs hotter, has an afterburner and variable nozzle... and it is made virtually entirely domestically; yes, including the turbine blades that the author wastes two pages reassuring you only the West can make. On thin margins... this is laughable. The CCP loves to subsidize strategically industries in six million ways and it is _really_ good at it. Way better than any Western government. Talk about efficient use of gov't money, the CCP will get you high quality engineers, raw materials, a captive market, whatever you need. Negative margins do not bother them one iota. On strong regulatory requirements... China has a massive domestic market, a physically large country and several strong allies / client states. International requirements are irrelevant to start and once they have proven performance in their markets they can get them anyway. On opportunity costs... this is the least weak of the arguments. I would argue that 1) China has enough top talent to go around, 2) even in a post-AI world jet engines are useful, and 3) it's clearly a priority of Xi Jinping and thus this whole discussion is irrelevant. That said, there is something to this argument and I would be interested to read a political/strategic analysis on this topic. Overall, this and Aakash's other articles seem like starting with a conclusion then grasping at random factoids to defend it. If I might give advice to the author: try writing with a strong central thesis. |