
Tesla’s China Dream Threatened by Standoff Over Shanghai Factory - cepth
https://www.bloomberg.com/news/articles/2018-02-14/tesla-s-china-dream-threatened-by-standoff-over-shanghai-factory
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danimal88
from my experience operating in China, its really pretty hostile to foriegn
enterprises. If you want to import into China, you face incredibly high import
duties. If you want to open a WOFE (wholly owned foreign entity), you have to
recursively give them your ownership information so if you are venture backed,
they will require your cap table, your investors cap table etc, etc. There is
a reason there are very few American products in China outside of the biggest
American brands, its simply too difficult and has too much compliance. I love
China, but I do think the trade rules asymmetry with the US will need to be
addressed at some point. There hasn't really been a detailed and honest
discussion about this.

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mathperson
It was called the tpp...

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whatyoucantsay
Don't be naive. The TPP will no more fetter the CCP than the WTO has.

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mathperson
Well the US is no longer part of the tpp.... In the counterfactual world where
tpp is signed by the American president I think it would have quite potent

[https://www.google.com/amp/foreignpolicy.com/2015/10/07/chin...](https://www.google.com/amp/foreignpolicy.com/2015/10/07/china-
tpp-trans-pacific-partnership-obama-us-trade-xi/amp/)

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whatyoucantsay
Why? The US is part of the WTO, which has been woefully incapable of reigning
in Chinese currency controls or limits on foreign companies.

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BatFastard
The whole joint venture requirement of China is just another way for China to
steal IP and money from other countries. Talk about China taking advantage of
the US and EU.

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cma
Sounds like they are following after American heros:

[https://en.wikipedia.org/wiki/Samuel_Slater](https://en.wikipedia.org/wiki/Samuel_Slater)

    
    
        Samuel Slater (June 9, 1768 – April 21, 1835) was an 
        early English-American industrialist known as the 
        "Father of the American Industrial Revolution" (a phrase
        coined by Andrew Jackson) and the "Father of the
        American Factory System."
    
        In the UK, he was called "Slater the Traitor" because he
        brought British textile technology to America, modifying 
        it for United States use. He memorized the designs of
        textile factory machinery as an apprentice to a pioneer
        in the British industry before migrating to the United
        States at the age of 21.

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oh_sigh
There's a slight difference between someone memorizing how things work, versus
whole sale theft of corporate documents, data, complex technical design, etc.

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e_b
No.

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BRAlNlAC
That's like saying there is no difference between a verbal description and a
video of something.

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e_b
No, it's not.

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oh_sigh
Yes, it is.

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JustAnotherPat
Make them in Vietnam and let the rich Chinese buy them as status symbols.

Everyone else can stick to the Chinese lemons.

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imron
Yep. Just be sure to sell them in black.

An inflated purchase price thanks to 25% tariffs just makes them more
attractive to buyers who don't care about price.

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vkou
In the short term, Tesla needs China more then China needs Tesa. Tesla's
shareholders would revolt if Tesla gave up the Chinese market.

In the long term, this will help bootstrap China's expertise in electric car
manufacturing.

It's a brilliant economic policy. Foreign companies cannot resist access to
such a large market - they can either partner, or watch their competitors do
so.

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Retric
Intel and several others successfully abandoned China without issue. The
rational choice in high tech manufacturing is to say as far away as possible.

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bilkoo
Wait, what do you mean Intel abandoned China?

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Retric
[https://en.wikipedia.org/wiki/List_of_Intel_manufacturing_si...](https://en.wikipedia.org/wiki/List_of_Intel_manufacturing_sites)

Intel's only factory in china uses 300 or 65 nm processes. That's Pentium 4
level manufacturing, and clearly not using critical x86 IP.

They are currently building yet another US factory for 7 nm processes.

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fspeech
Not sure if you know about export control and the Wassenaar Arrangement. I
don't think Intel can manufacture in China at the advanced node even if they
wanted to.

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jblow
The tone of the first paragraph should tell you everything you need to know
about this article.

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reaperducer
Doesn't China understand it's supposed to roll over for any tech company with
the word "disrupt" in its brochure?

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ng12
If you think electric cars are mockingly disruptive I would love to know what
you think actually is.

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reaperducer
Not mocking the car. Mocking the typical SV hype.

