Is China Tech Doomed? (Part Four)

Details on China's low-tech edge. The most important post to date

This is a seminal piece in my U.S.-China Tech War series. I strongly recommend it.

The post for paid subscribers only. But you can use the 7-day free trial to unlock it.

My general thesis is that China loses on high tech innovation but wins the low-tech war. Net-net China still has the upper hand in terms of manufacturing, markets, and economics. Most high tech stuff is impressive but doesn’t really make money. You need a manufacturing powerhouse and a large market like China to commercialize it.

“Technology is stuff that doesn't work yet.” Douglas Adam

The recent Biden-Xi meeting at G20 made no reference to technology. But I think China’s low tech advantage over the U.S., as a bargaining chip, was embedded in the key issues: climate change, economic stability and food security etc. For example, global economic stability hinges on supply chain safety, which largely depends on China.

China’s Low Tech Edge

The way I see it, China has not one but multiple advantages in low tech, also known as industrial tech or advanced manufacturing. Things like solar equipment, electric vehicles, home appliances, consumer electronics, discrete semiconductors, medical equipment and heavy machinery.

Today I discuss 11 distinctive yet interconnected aspects of China’s low tech edge, along with useful videos for demonstration purposes.

Manufacturing History & Culture

Government Policy & Subsidy

Low Energy Cost

Labor Cost Advantage

Superior Infrastructure

Supply Chain Localization

Control of Essential Materials

Easy Access to Capital

Domestic Competition

World’s Largest Market

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