China's Penetration of Silicon Valley Creates Risks for Startups

DooKey

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Chinese venture capital company Danhua Capital has invested in many Silicon Valley startups over the years. Some of these startups are in the areas of drones, AI and cyber security. This company and many other have ties to the Chinese government and the U.S. Congress is working on legislation to grant the U.S. government the ability to block future investments by the Chinese. Considering the amount of IP theft and forced IP transfer the Chinese are involved in it makes sense to try and stop it with this regulation. Will the reduction of Chinese investment dollars slow down Silicon Valley startups? Only time will tell.

The new law would give the U.S. government’s Committee on Foreign Investment in the United States (CFIUS) wide latitude to decide what sorts of deals to examine, eliminating certain ownership thresholds, with a particular focus on so-called “critical” technologies.
 
This is a tough one. Right now, it's obvious when it is Chinese dollars, at least to the start-ups and the IRS. Regulations like this though have a tendency to make companies be more secretive. The infusion of Chinese dollars will likely continue, we'll just be less capable of tracing it.
 
So they can't get money from US corporations or groups so they look abroad for money. Chinese companies and groups give them money and that is ruining Silicon Valley? I love the "close ties" too. A way to insinuate an "apparent truth" with no evidence whatsoever, a way to propagate logical fallacies. Propagating misinformation... There's a name for that... PROPAGANDA!

This would not be a problem if start-ups would start-out big enough to lobby for fat DoD subsidies, then they would never have to develop anything again, they could just use gubmint money to dump heavily subsidised product all over the world. That would crush foreign companies that actually have to make money to have money, once they're really suffering you can buy them all up and steal their stuff! Of course these American start ups get bought out by companies that are already getting that sweet, sweet gubby money if they have something worth owning. Is the real problem that Chinese funds might block sales to American subsidy darlings? American subidy-Cinderallas have been doing this all over the world through "allowable cost determination" for the last 70 years, slowly scumming control of start-ups with subsidy money globally and gutting them. Meaning that China is cheating the system in the exact same way the US has cheated the system all over the world since WWII?

BUT WAIT! If those companies are getting hundreds of billions of dollars in DoD funnee-cheques wouldn't that mean they have "close ties" to the American regime?

Mind-Blown.jpg


Could it be that this whole, massive, global temper-tantrum is because mean ol' China is using America's tried and true tactics to cock-block the good ol' USA?

Never mind all of that shit: The Bureau of Alternative Facts and Propaganda has assumed direct control. The sycophant wire is abuzz with today's assigned thoughts.
 
So they can't get money from US corporations or groups so they look abroad for money. Chinese companies and groups give them money and that is ruining Silicon Valley? I love the "close ties" too. A way to insinuate an "apparent truth" with no evidence whatsoever, a way to propagate logical fallacies. Propagating misinformation... There's a name for that... PROPAGANDA!

This would not be a problem if start-ups would start-out big enough to lobby for fat DoD subsidies, then they would never have to develop anything again, they could just use gubmint money to dump heavily subsidised product all over the world. That would crush foreign companies that actually have to make money to have money, once they're really suffering you can buy them all up and steal their stuff! Of course these American start ups get bought out by companies that are already getting that sweet, sweet gubby money if they have something worth owning. Is the real problem that Chinese funds might block sales to American subsidy darlings? American subidy-Cinderallas have been doing this all over the world through "allowable cost determination" for the last 70 years, slowly scumming control of start-ups with subsidy money globally and gutting them. Meaning that China is cheating the system in the exact same way the US has cheated the system all over the world since WWII?

BUT WAIT! If those companies are getting hundreds of billions of dollars in DoD funnee-cheques wouldn't that mean they have "close ties" to the American regime?

View attachment 85145

Could it be that this whole, massive, global temper-tantrum is because mean ol' China is using America's tried and true tactics to cock-block the good ol' USA?

Never mind all of that shit: The Bureau of Alternative Facts and Propaganda has assumed direct control. The sycophant wire is abuzz with today's assigned thoughts.

Yeah, you are thinking way too hard about this. I'll try and break down what it really is:

1. Find company with promising ideas, invest as little as possible to gain access to their patents and processes.

2. Let said company do all the leg work. The R&D, working out all the bugs in the tech, figuring out the overhead and production costs, setting the most profitable market price, advertising the product, etc. etc.

3. If the new product shows signs of being successful and profitable take all that information, make an identical product and undercut the company you invested in and put them out of business and reap the reward from all their work.


Its got a lot less to do with deep, underground, political shadow wars and a lot more to do with a sleezy way to make a bunch of money off the innovative ideas and hard work of other people.
 
Yeah, you are thinking way too hard about this. I'll try and break down what it really is:

1. Find company with promising ideas, invest as little as possible to gain access to their patents and processes.

2. Let said company do all the leg work. The R&D, working out all the bugs in the tech, figuring out the overhead and production costs, setting the most profitable market price, advertising the product, etc. etc.

3. If the new product shows signs of being successful and profitable take all that information, make an identical product and undercut the company you invested in and put them out of business and reap the reward from all their work.


Its got a lot less to do with deep, underground, political shadow wars and a lot more to do with a sleezy way to make a bunch of money off the innovative ideas and hard work of other people.

You're not wrong, but you're oversimplifying. This is also about countries getting their dirty, little claws into the bones of new technologies. Especially communications technologies, but more than that it can pay massive dividends for industry. SABRE engines, rocket gimbals, and afterburners are all "acquired" technologies. Bought by companies like Boeing, SAAB, Lockheed, BAE, General Motors or any other number of defence contractors, anywhere in the world, and used in-house for a myriad of purposes. Some defence, some just for good ol' income. The money to do it tends to come from subsidies, though, and that's supposed to be illegal.

The angle that it's being used to spy on the US is bullshit, I agree, if countries really wanted to comprehensively spy on American citizens they would be going after the technology that the American intelligence community uses, not new stuff.

Edit: It's no deep government conspiracy to use tax payer money to purchase competitive advantages for your domestic corporations, hell, it's been common practice all over the world since trade started existing. It's being played that way by the US regime right now because somebody who doesn't understand how any of this shit works is pointing fingers while he stands in a mile deep chasm of bullshit.
 
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Yeah, you are thinking way too hard about this. I'll try and break down what it really is:

1. Find company with promising ideas, invest as little as possible to gain access to their patents and processes.

2. Let said company do all the leg work. The R&D, working out all the bugs in the tech, figuring out the overhead and production costs, setting the most profitable market price, advertising the product, etc. etc.

3. If the new product shows signs of being successful and profitable take all that information, make an identical product and undercut the company you invested in and put them out of business and reap the reward from all their work.


Its got a lot less to do with deep, underground, political shadow wars and a lot more to do with a sleezy way to make a bunch of money off the innovative ideas and hard work of other people.

This is probably a lot closer to reality than Twisted Kidney's version. Not that there isn't truth to what he is saying, just that it may not be precisely the same thing America has been doing.

I would also argue this may be part and parcel of the Made in China 2025 project, the same one believed to be behind the IP heist at Micron, and the bottom of that moral bucket has yet to be discovered.
 
For sure there is some wonky subterfuge and accruing new tech for other purposes going on occasionally. I just don't see much "the end justifies the means" type corruption for the good of the country, be it the U.S. or China, but I do see gigantic mountains of corruption intended to line their personal pockets.
 
who woulda thought that making everything in China would come back to bite us in the ass ?

i wonder if other countries see us as a national security threat when we invest in their shit.
 
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