Friday, October 16, 2020

Stark Admission that China is ahead of America

 Imagine you're the trainer for a car racer who keeps winning races.

 

A new race is announced, he gets into the car, you stay in radio contact with him, the race starts and for the first time, he falls behind as someone gets ahead of him. Do you think you'd be doing him a service telling him he's ahead when he is not?

 

Believe it or not, Tom Rogan has tried to do something like this, if not worse. To make his point, he wrote an article under the title: “Pursuing Shenzhen ambitions, China will double down on intellectual properties theft,” published on October 14, 2020 in The Washington Examiner. But as it turned out, while trying to show that America is still ahead of China, Tom Rogan proved that China is ahead of America and will stay that way.

 

Rogan began the discussion by making this assertion: “China lacks the technology industry to lead the world in global high-value exports.” Well then, does the rest of the article prove this point? No, it does not as you'll see in a moment. Still, however, immediately after making that assertion, Tom Rogan came to this conclusion: “To strengthen its position, Beijing will have to double down on intellectual property theft, and America will be the primary target.” This would be his guess based on the assertion he cannot prove.

 

He goes on to explain that China will double down on stealing American technology because of two reasons, one being that, “The United States is now denying China access to high technology software and hardware”.

 

What? What is he talking about? If the US is denying China access to its technology only now, it means that America was not denying it before. But not denying it before, means that what China was getting then, was not stolen. In other words, zero is what China has been stealing from America, according to Tom Rogan. And to double down on zero, like he says China is doing, means that China is still getting zero stolen technology from America. Is this paradox what Tom Rogan is trying to communicate? If yes, for what useful purpose?

 

Whatever it is, to strengthen his argument, Rogan did his own doubling down. Here is how that sounds like:

 

“After all, China lacks the three things that make the US technology industry so successful: a vast research and development base, attractiveness to high-value foreign talent, and the credible rule of law that protects their developments against competitor theft”.

 

Let's look at each of these three things separately:

 

First, whereas in the advanced economies, 10% or less of the research and development (R&D) base exist in universities and government owned laboratories, fully 90% or more exist on the premises of the industries themselves. For example, in the same way that drug and auto makers do their own research, so do most other industries. America used to lead the world in all categories of industry, but now that American industries have moved to China, so did the R&D they used to do in America. The point is that there is very little R&D to steal in America at this time, but there is much that can be stolen from China.

 

Second, let's ask this question: From where did America used to get most of its “high-value foreign talent?” From China more than anywhere else. So now that the talented Chinese are finding more opportunities in China, and now that America is closing the door on them, these talented people are staying home. They are doing in China the work they used to do in America. Just think about it, every future Eric Yuan of Zoom Video Communications who could be in America, employing American workers and adding to the American GDP, will now be in China, employing Chinese workers and adding to the Chinese GDP.

 

Third, Tom Rogan says that America has the “rule of law that protects the development of innovators against competitor theft.” Which competitors are these? If we think Chinese, we fall into the double down controversy that led us nowhere. But if we think of American companies stealing from each other, we wonder why would they not also steal from China as well? But if that's what they have been doing, it reveals the truth about Tom Rogan reversing reality by attributing the sins of Americans to the Chinese. And that's not a good thing to do.

 

As to Tom Rogan's claim that China lacks the technology to lead the world in exports, he is ignoring Huawei, Tik Tok, WeChat and many other Chinese products which are taking the world by storm. He tried to disparage Huawei near the end of his article by insinuating that it used to be successful because it relied on stolen American technology. But now that it cannot steal anymore, Huawei products are no longer successful, according to him. Well then, if this is true, why is it that America is blocking Huawei at home, and trying to block it abroad as well? It’s not because it is unsuccessful; it’s because it is too successful.