The China Thread

[Sheilbh]

Incidentally interesting piece on Arm China basically taking Arm's IP then going rogue:
https://semianalysis.substack.com/p/the-semiconductor-heist-of-the-century

Inevitably despite that warning the UK government is showing no sign of trying to block the sale of a market-leading semi-conductor firm based in Wales to a Chinese suitor. I feel like it's reasonably predictable how that'll go

Edit: Oh apparently the sale has happened but it's now been called in for review for national security reasons and can be unwound/blocked (at least one advisor has said it should be).

[DGuller]

If Britain can sell the jet engine technology to USSR, why can't they sell chip technology to China?

[Sheilbh]

Britain for 60 years when the very blaringly obvious security risk is, in fact, exploited: "this is the one thing we didn't want to happen."

[grumbler]

If Britain can sell the jet engine technology to USSR, why can't they sell chip technology to China?

Because to sell to China, you have to give Chinese 51% of your company's stake in a "joint venture".  The Chinese partners can then take the joint venture and run it independently of the interests of the 49% shareholders, and the courts will back them because crony capitalism.  So you don't sell to China, you agree to let the Chinese rob you.

[Josquius]

I read the arm piece a few days ago
Needs pointing out brexit is to blame for that - it was the post ref crash of the pound which knocked arm down to a bargain price that its board was willing to sell it to soft bank for.
Soft bank are a really awful company. White family ads excluded.
It's strange though as you'd think they should know better. Japan has generally been way ahead of the west with pulling back from China - I read loads about this happening when I was reading the Japanese papers regularly a decade ago. I guess soft bank as a big untraditional company fell outside this

[DGuller]

If Britain can sell the jet engine technology to USSR, why can't they sell chip technology to China?

Because to sell to China, you have to give Chinese 51% of your company's stake in a "joint venture".  The Chinese partners can then take the joint venture and run it independently of the interests of the 49% shareholders, and the courts will back them because crony capitalism.  So you don't sell to China, you agree to let the Chinese rob you.

Yeah, good point.  China is definitely not Stalin's USSR when it comes to trustworthiness.

[crazy canuck]

If Britain can sell the jet engine technology to USSR, why can't they sell chip technology to China?

Because to sell to China, you have to give Chinese 51% of your company's stake in a "joint venture".  The Chinese partners can then take the joint venture and run it independently of the interests of the 49% shareholders, and the courts will back them because crony capitalism.  So you don't sell to China, you agree to let the Chinese rob you.

Yeah, good point.  China is definitely not Stalin's USSR when it comes to trustworthiness.

Less to do with trustworthiness and more to do with sophistication.  The Soviets had no idea how to take over the corporate structure of their adversaries, the Chinese were doing it, with western regulatory approval, for quite some time.

[Sheilbh]

Yeah although the Soviets were trying to buy advanced heavy industrial equipment and arms to reverse engineer.

And Britain was glad to help

(So, from memory, at least was Nazi Germany which turned out really badly for them.)

[crazy canuck]

Yeah although the Soviets were trying to buy advanced heavy industrial equipment and arms to reverse engineer.

And Britain was glad to help

(So, from memory, at least was Nazi Germany which turned out really badly for them.)

But that is Grumbler's point.  Compared to China the Soviets were unsophisticated rubes.  Why bother trying to reverse engineer when you can just buy a controlling interest in the company that owns the tech.

[Josquius]

I do wonder if there's any legal recourse on this stuff?
Within China of course not. But then in China they could just rip anything off no matter their rights.
For international selling however could stolen tech be outlawed? Enforcement would be a pain of course but it does seem possible with big ticket items.

[Tonitrus]

Good to see the Party getting back to basics? 

https://apnews.com/article/lifestyle-entertainment-business-religion-china-62dda0fc98601dd5afa3aa555a901b3f

China bans men it sees as not masculine enough from TV
By JOE McDONALD
today

BEIJING (AP) — China's government banned effeminate men on TV and told broadcasters Thursday to promote "revolutionary culture," broadening a campaign to tighten control over business and society and enforce official morality.

President Xi Jinping has called for a "national rejuvenation," with tighter Communist Party control of business, education, culture and religion. Companies and the public are under increasing pressure to align with its vision for a more powerful China and healthier society.

The party has reduced children's access to online games and is trying to discourage what it sees as unhealthy attention to celebrities.

Broadcasters must "resolutely put an end to sissy men and other abnormal esthetics," the TV regulator said, using an insulting slang term for effeminate men — "niang pao," or literally, "girlie guns."

That reflects official concern that Chinese pop stars, influenced by the sleek, girlish look of some South Korean and Japanese singers and actors, are failing to encourage China's young men to be masculine enough.

Broadcasters should avoid promoting "vulgar internet celebrities" and admiration of wealth and celebrity, the regulator said. Instead, programs should "vigorously promote excellent Chinese traditional culture, revolutionary culture and advanced socialist culture."

[Jacob]

But Xi himself looks like a grandma.

[Sheilbh]

But Xi himself looks like a grandma.

I mean tragically Winnie the Pooh is my model of masculinity so I feel this

[DGuller]

But Xi himself looks like a grandma.

I mean tragically Winnie the Pooh is my model of masculinity so I feel this

Your model of masculinity is a bear without genitals? 

[Sheilbh]

From Adam Tooze on Twitter:

Adam Tooze
@adam_tooze
Xi's "common prosperity for all", line has knocked €61.7bn, or almost 10 per cent, from the collective market value of Western luxury brands LVMH, Hermès, Kering, Richemont and Burberry since August 17.
https://ft.com/content/4cf59a