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Most of the time its just low labour costs and no environmental reg. Its really that simple
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At least in the case of solar and EVs, it's a case of western countries preferring to protect their existing cashcow industries rather than invest to build the industries of the future.

For a brief second, Germany was in a position to become a solar power global player. But our conservative government was more interested in protecting their local, bad industry. Including destroying forests for coal all projections said we would never actually need.

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From a EU perspective similar could be said about the US market - no strict worker protections, lobbying, and a general "capital first" mindset over the users/people (see GDPR etc).
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That does not explain DeepSeek, nor does it explain the car industry.

The main advantages the Chinese car industry has right now are: they lead in battery R&D, production is highly automated, they iterate quickly, Chinese work culture is extremely competitive and things get done fast, and the Chinese state has policies to promote EV adoption, so there's a huge domestic market.

Note that the last point is different from subsidies to car manufacturers. Cities made it difficult to get license plates for ICE cars. The government encouraged the massive buildout of charging infrastructure. And it used consumer rebates, like California did.

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aside from the huge domestic market (or potential in the future), china has built incredibly efficient infrastructure for manufacturing prototyping/production.

but it's also thanks to protectionism, and their strictly controlled (not freely traded) cheap currency.

if china had to play by the same rules as japan or germany it would not be quite as successful. but the west walked into this trap, hoping their win-win proposal would be satisfactory for all. now the west is too dependent on chinese production to enforce equal standing.

of course the US has its own unfair advantages, e.g. the global reserve currency and the massive post-WWII headstart.

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The US spent decades transferring manufacturing, capital, and know-how to China, while Chinese students trained, and excelled, at elite Western universities. Why are people surprised that China eventually became capable of competing with the US?
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https://www.theguardian.com/world/2025/dec/07/hostile-powers... these students?

Hostile spy agencies are now as focused on infiltrating western universities and companies as they are on doing so to governments, according to the former head of Canada’s intelligence service.

David Vigneault warned that a recent “industrial-scale” attempt by China to steal new technologies showed the need for increased vigilance from academics.

“The frontline has moved, from being focused on government information to private sector innovation, research innovation and universities,” he told the Guardian in his first interview since leaving the Canadian Security Intelligence Service (CSIS), which is part of the “Five Eyes” intelligence sharing alliance with the US, UK, Australia and New Zealand.

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People like Mr. Vigneault know nothing about how academia works. If they get their way, they'll do massive damage to Canada's academic research ecosystem. Academia is naturally open and international.

These people don't get that academics publish their research in openly available journals. They go to conferences around the world and tell everyone who will listen exactly what they are working on. Unless you're working in a secretive government weapons lab, there's nothing to hide.

In the US, people like Mr. Vigneault instituted a witch hunt against ethnically Chinese researchers, and ended up messing with the lives of all sorts of innocent people, including the director of MIT's mechanical engineering department. They found zero spies. Just a bunch of scientists working normally.

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