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Alibaba Co-founder Says Many Americans 'Want To Stop China' From Upgrading Its Tech (cnbc.com)

With the threat of Trump's ever-looming trade war with China and his administration's sanctions on Chinese companies like ZTE, it's hard to remember a more contentious period between the two countries in recent times. Adding fuel to the conversation, an Alibaba co-founder alleged that many Americans want to stop China from upgrading its technology and from becoming more innovative. From a report: Chinese media outlets have repeatedly asserted that American complaints about the tech sector are really just efforts to slow the country's rise as a global power. "There's nothing wrong with a country wanting to upgrade its own manufacturing sector, go higher tech, be more innovative," Tsai said. "But then, from the Chinese perspective, what we're seeing is there are a lot of people in America that want to stop China from doing that." After three decades of producing low-end manufacturing goods, Tsai said, China recognizes the need to develop better technology, upgrade its manufacturing sector and focus more on value-added areas like robotics, aeronautics and high-tech medical equipment.

26 of 213 comments (clear)

  1. or... by GoTeam · · Score: 5, Interesting

    American companies prefer to not have their IP stolen by foreign companies. Also, don't start with something as silly and foolish as: "it's hard to remember a more contentious period between the two countries in recent times". Really? Is it that hard to remember more contentious countries? Let me get you started: https://en.wikipedia.org/wiki/...

    1. Re:or... by Austerity+Empowers · · Score: 3, Insightful

      But you are not fighting that corrupt dictatorship, you are fighting the people there.

      If those people are actively working to get rid of their government, then I'm all for them. But they're not, so they're part of the problem. If they like it, great, but it makes us enemies. Tough shit.

  2. Contentiousness by JBMcB · · Score: 4, Insightful

    it's hard to remember a more contentious period between the two countries in recent times.

    Well, Saudi Arabia is bombing the crap out of Yemen. Russia has been covertly sending troops into Ukraine. Israel and Iran are almost at war.

    So yeah, one country increasing tariffs on another is probably the most contentious thing going on right now.

    --
    My Other Computer Is A Data General Nova III.
  3. Re:Well, we sure as hell can't innovate ourselves! by ranton · · Score: 5, Insightful

    Well, we sure as hell can't innovate ourselves! So our only recourse is to try to stop other countries from innovating! No way can we allow someone a chance at bettering themselves if we're not able to steal the betterment for our own use.

    Regardless of the many problems the US has, not being able to innovate certainly isn't one of them. China is playing catch up in innovation, and who do you think they are trying to catch up to? The US is having a hard time dealing with not being the only game in town, but it is still top dog. Possibly not for long but it certainly still is today.

    While there is certainly a significant portion of Americans who simply want China to fail, most of us just don't want China to steal. Even that is a bit misguided though since every developing nation (including the early US) steals while catching up. Americans fundamentally have to realize we cannot rest on our laurels. The lead we have right now will diminish and then evaporate and we will need to compete on a level playing field. That is already true with many developed countries, and it will soon be true with China.

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    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
  4. Maturity curve [Re:or...] by Tablizer · · Score: 5, Insightful

    Basically he's denying China cheats like the wind. To be fair, when USA industry was young, we played intellectual property games with Europe also.

    But when you become a trading super-power, your scrappy "street-smarts" 3rd-world tendencies need to be corrected or you will face retaliation. You can no longer fly under the radar. China has yet to kick its bad habits.

    1. Re:Maturity curve [Re:or...] by ranton · · Score: 2

      But when you become a trading super-power, your scrappy "street-smarts" 3rd-world tendencies need to be corrected or you will face retaliation. You can no longer fly under the radar. China has yet to kick its bad habits.

      In fairness, China may be a trading super-power but it is still a developing nation. Its GDP (PPP) per capita needs to double if not triple until it can really be considered a developed power house like the top European nations or the US. China's shear size allows it to compete with more developed economies in the industries it chooses, but it likely has at least a decade or two until it would be considered a truly developed nation on the same level playing field as countries such as the UK, Germany, or US.

      --
      -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
    2. Re:Maturity curve [Re:or...] by WindBourne · · Score: 3, Interesting

      THere was a difference. Europe was forcing all other nations/colonies to cater to them with resources.
      America does not do that. In fact, up until now, we have allowed/encouraged manufacturing to go offshore. The idea was to help other nation's get rich to have better 2 way trade. Problem is, when the other nation puts up massive barriers even once they are equals in many aspects.
      That has been insane.

      Of course, Trump's approach with the rest of our western allies is just as insane.

      --
      I prefer the "u" in honour as it seems to be missing these days.
    3. Re:Maturity curve [Re:or...] by AmiMoJo · · Score: 4, Insightful

      Every country steals tech. The French were notorious for bugging Air France flights and doing state level industrial espionage. A lot of early nuclear tech was stolen by the US from Britain. European and US car-makers "adopted" a lot of Japanese tech to make their vehicles more reliable, after accusing the Japanese of copying them.

      Now China is filing a lot of patents. They are really leading with electric vehicle tech, for example. A lot of European and Japanese manufacturers that missed the boat are turning to them now while their own domestic suppliers try to catch up.

      This is just the way of the world. Everyone steals from everyone else, countries that were developing eventually start leading in some areas. Korea used to be a source of cheap labour, now they are leading manufacturers of memory, displays, batteries, phones, some kinds of software...

      If anything, I much prefer the Chinese attitude towards patents and IP to the American one. They get on and innovate without worrying too much about rounded corners and vague, obscure and never-used patents. And actually the west isn't that different - we just waste more time and money looking for trivial variations to get around patents and IP.

      I worked on a sensor product that three short sampling periods. I asked why not just use one longer sampling period and it turned out it was to get around a patent that covered the complex detection algorithm, and was of no benefit.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    4. Re:Maturity curve [Re:or...] by Frobnicator · · Score: 4, Interesting

      There is stealing tech like you described, and stealing tech like China is doing it.

      Industrial espionage is basically the acceptable form of doing it. If you can slip someone into the company, sneak up to the golden goose, and get out, that's a corporate success story. Alternatively if you can hire away their workers, or if you can reverse engineer technology, those are also generally acceptable. The goods are still protected by assorted laws, but if you can sneak some information out that's generally accepted.

      China's form is a mandate that every company doing business turns over the golden goose outright. If you want to do business in China you must turn over the technology, and you must pass along ownership to a mandatory Chinese business partner. Many times the mandated business partner takes the IP and makes their own products from it. They aren't adapting it, nor growing from it, nor trying to integrate it into their own. The law requires corporations give up their secrets, then those secrets are directly used against the corporation.

      --
      //TODO: Think of witty sig statement
    5. Re:Maturity curve [Re:or...] by Anonymous Coward · · Score: 2, Interesting

      Except that's not the full story. Companies that went to China and gave up IP did so because what they were giving up wasn't 1st tier IP, but 2nd or 3rd tier tech. What this meant is that companies were essentially giving up old tech IP. China learned from that and is not trying to create their own 1st tier IP.

      Companies thought they could give up the 2nd or 3rd tier older tech because they thought they could continue to rely on innovation and their 1st tier IP. The issue is that these companies didn't realize that by giving up 2nd and 3rd tier tech, that they were giving up 3rd world market. African countries e.g. did not need 1st tier tech, because it was simply too expensive, so they were glad to be able to get 2nd or 3rd tier tech. China began undercutting companies in these market places.

      As to whether Trump wants China from "upgrading its tech", to a large degree it's true. Trump has already stated that one of the things he wanted is for China to give up it's 2030 plan, which would have China investing heavily in research and tech fields to develop new tech.

  5. Americans want to stop China from upgrading... by Dr_b_ · · Score: 3, Insightful

    Maybe they just want to stop having tech stolen and show up in Chinese products that largely look like clones of the stolen products that are in turn then sold back to the foreign markets at much lower cost. There is no way any american laws or tariffs would prevent or even could prevent China from having its own ideas, creating new product categories, and then selling them to other countries that would feel safe using them

  6. America's push to stop china's dumping/theft/etc by WindBourne · · Score: 4, Interesting

    China continues to require that nearly all companies that operate in CHina to have 51% chinese ownership (though cars are now exempted, though they will still pay high tariffs). Likewise, the companies will be required to turn over IP to Chinese owners.
    And yet, this is America's fault for a western company wanting to keep their IP, while Chinese companies will sue for theft of their IP.
    Yeah, totally makes sense.

    Now, if Trump would just do his GD job or at least keep a few of his promises esp for dealing with CHina.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  7. Re:Well, we sure as hell can't innovate ourselves! by WindBourne · · Score: 3, Informative

    really? No innovation here?
    Nearly all of AE still comes from America.
    EV innovation is coming from America.
    Space innovation is coming from America.
    China/India are still trying to catch up with civil nuclear tech innovation from America's 60s.
    Most of the items that are made in China but sold in America were innovated in America, not china.
    BUT, America is not innovative?

    You could only be Porky/Red Tide to have such egregious lies.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  8. Re:"becoming more innovative" by WindBourne · · Score: 4, Insightful

    that is not accurate.
    Yes, China steals a great deal. BUT, that does not mean that CHina's innovation is not up and coming. It is a horrible mistake to claim otherwise.
    Just like Japan and India today, you have many ppl in CHina that are learning and are as innovative as any others.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  9. Re:More likely by butchersong · · Score: 2

    Countries like to have allies. They are obligated to defend those allies. It isn't always altruistic but many times it can be. Setting aside fluffy feelings though there is plenty of motivation for us to want to defend our allies in the region from a country that is at best a "competitor" to us on the global stage.

  10. Not everything is U.S vs China by Dorianny · · Score: 3, Insightful

    ZTE broke an International embargo and then blatantly lied about implementing the remedies it had agreed to. There is a general unease with China's grown economic and military power but ZTE's case had absolutely nothing to do with any of that. Chinese companies need to learn that being cozy with the Chinese Communist party can't protect them in the world stage

  11. Re:More likely by cayenne8 · · Score: 4, Insightful
    Not to mention, they Chinese aren't mentioning that their plans to "upgrade their technology" is by way of stealing the tech from all the other major western nations.

    We do the R&D on new ideas, they use espionage (been going on for decades) to steal it and then "upgrade" their systems, to compete back with us.

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  12. Military vs. commercial shenanigans by Tablizer · · Score: 3, Interesting

    That's mostly military tech. Everyone expects and does military espionage.

    But China plays games on the commercial side. It would be like the US Federal Gov't breaking into Chinese OS companies and giving the trade secrets to Microsoft, or creating red-tape for foreign competitors to MS that MS itself doesn't have.

  13. Re:Well, we sure as hell can't innovate ourselves! by ranton · · Score: 2

    "we will need to compete on a level playing field."

    Bullshit. The playing field will never be level, so long as Chinese companies continue to steal then undercut both quality and price.

    What I mean by a level playing field is when China has just as much tech for the US to steal as we do of them. Right now China is like the early US, when we stole a significant amount of IP from Europe. It is simply what developing nations do, and it hastens the time it takes for them to contribute more to the World economy (which helps everyone) . Soon China will become a developed nation and expectations regarding China's behavior will shift.

    --
    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
  14. Re:Well, we sure as hell can't innovate ourselves! by WindBourne · · Score: 2

    LOL.
    Every company out there is screaming that they will build tesla killers. They are not saying that they will build Renault killers or Mercdes killers or BYD killers.
    Tesla is not doing motors on each wheel because it is ineffective. That is why every car maker that starts down that path stops. They do OTA updates and constantly have a car that improves. All their cars compete head on with ICE versions, instead of being highly over priced shit like the leaf, i3, bolt, etc. Tesla has a massive super charger network that covers almost 1/2 of the global population. MB/VW/Ford are just now starting to build out a super charger network and even then, they are getting govs to fund it.
    The reason that nearly all car makers have moved their autopilot efforts to California is because Tesla is WAY ahead of others. Yes, at the moment, they are having the same singular issue that has to be addressed. BUT, they remain way ahead.
    Safety? Tesla makes volvo look like a yugo.
    Finally, there IS no real EV innovation in Europe. Even China is ahead of Europe.

    Angel, you are messed up because you let your hatred of America fucked with your head.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  15. Re: More likely by Type44Q · · Score: 2

    ...the US DISREGARDED AND DIDN'T GIVE A SHIT about European patents or Copyrights.

    Oh, we certainly regarded them: feel free to shut your mouth for a bit and learn a little.

  16. Back here on Earth by sjbe · · Score: 4, Informative

    If you mean electric vehicle with EV, then no. america is decades behind Europe.

    What color is the sky on your planet? You certainly aren't basing that claim on any facts (nor did you provide any) so one has to presume you are talking about a different America and a different Europe than the one here on Earth.

    Tesla made a new and better battery and manages to sell a nice set of cars ... but in the vehicle itself is nothing really innovative.+

    Spare me your attempt to seem unimpressed. "Nothing really innovative"? You might have an argument if anyone else was making more innovative vehicles. Nobody has moved the auto industry more towards electrification than Tesla and to claim their cars aren't innovative is preposterous even if you don't like them.

  17. I don't have a problem with upgrade and improve by Khyber · · Score: 2

    It's the blatant stealing you've done to me four times now with successive LED designs I've asked various companies to manufacture for me, only for them to turn around and sell my fucking units to a competitor.

    And this is why all my primary manufacturing gets done here in the USA, by my own hand. Fuck you assholes, you just supply raw components to me. No more asking you to build advanced things for me when you steal it.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  18. Maybe 5-10 years ago by voss · · Score: 2

    Now there are innovative and competitive chinese products out there. Trump just likes stroking the "Were number 1" jingoism among the old timers some more.
    Your not number 1 unless you earn it and keep earning it.

  19. Re:We did it to the Brits by sit1963nz · · Score: 4, Informative

    And during WWII, the USA would only accept payment for weapons and aid in Gold.

    For centuries the "gold standard" and the "British Pound" were the defect standard currencies for trade. Because the UK gold reserves were stripped from them by the USA the pound was conferred no longer to have the backing of the gold held in treasuries, so to get international trade the US$ became the standard because they now had the most gold.

  20. US patents by hackingbear · · Score: 2

    Unless one is under threats, each party involved in any deal can make any demand and the other parties can walk away if he doesn't like it. If these American companies don't like transferring IPs, then they can walk away. Just like a Chinese company should not deal with the US if it doesn't want to obey the (questionably erected) Iran sanction. (In practice, most companies may transfer some assembling IP over to the Chinese entities while retaining the most valuable components/tech; which is why much of the Chinese surplus in manufacturing are actually just transferring costs of components they purchased from abroad. Chinese usually just do the last step of assembling. There is likely little IP forced to be transferred.)

    Then you all know that how silly the US patent system has become. US companies have become patent trolls filing massive number of garbage patents over the year. How would a newcomer such as China can ever have a fair competing ground in such a skewed IP ecosystem? Why don't people in tech complain about the US patent system in other context but never when it involves China?