
How Silicon Valley chip pioneer MIPS landed in China - ckcheng
https://www.reuters.com/article/us-usa-china-tech-insight/tech-war-chronicles-how-a-silicon-valley-chip-pioneer-landed-in-china-idUSKBN25L15U
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CoffeeDregs
Ha. I was involved with MIPS in 2004 or so and worked with them on their China
strategy. They were very worried about going to China and losing control of
IP. My counterpoint was: MIPS was basically an also-ran to x86 & ARM and
survival was the big question. The chances of survival without presence in
China was basically zero so: MIPS should maintain their market in the US and
fight for presence in China; if they got into China, then they could focus on
the larger war and on defending IP in China...; if they didn't get into China,
they were dead anyways.

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wombatmobile
The US argument for protectionism against China is based on the theory of
competitive advantage, which posited that trade occurs when one nation is
better at producing something than other nations. That old model has been
revised in favour of a more nuanced understanding.

Paul Krugman was awarded the Nobel Prize for economics in 2008 for his work on
the Home Market Effect, which established that nations of similar economic
levels trade most with each other.

Rich countries with larger demand for high quality goods will tend to
specialize in those goods and consequently will tend to trade more with other
rich countries, which have similar demands in their domestic markets that can
be satisfied by imports. Hence, trade occurs between similarly rich countries.
The effect is similar to the way restaurants thrive in areas where there are
more restaurants.

