I’m not sure why you think protectionism (by the local government) can’t kill an industry. It happened to American steel as well: the American steel industry was “protected” while foreign steel companies innovated their production processes.
The timeline goes like this:
1. Government gets pressured by industry to protect domestic industry from outside competition
2. Domestic industry stagnates as it has no reason to make competitive products
3. Time passes, quality/value gulf becomes so large that it becomes impossible to catch up to competition. It becomes impossible to export your goods and even domestic customers look elsewhere.
If the USA dropped tariffs and bans against Chinese car companies, American car companies would need to improve rapidly to survive. Instead, they’re selling us $50,000 decade old dinosaur designs like the Chrysler Pacifica.
This literally already happened to them with Japanese cars. And let me tell you, you don’t want to drive a Chevrolet from before Honda and Toyota sold cars in the United States.
Not protectionism related, but look at the MacBook Neo competitors shown off by Dell and HP at Computex. Competition drives innovation and cost reduction for consumers. Apple forced HP and Dell to make an affordable aluminum chassis computer for the masses and consumers are the winner in the situation.
alt Hacker News
I’m not sure why you think protectionism (by the local government) can’t kill an industry. It happened to American steel as well: the American steel industry was “protected” while foreign steel companies innovated their production processes.
The timeline goes like this:
1. Government gets pressured by industry to protect domestic industry from outside competition
2. Domestic industry stagnates as it has no reason to make competitive products
3. Time passes, quality/value gulf becomes so large that it becomes impossible to catch up to competition. It becomes impossible to export your goods and even domestic customers look elsewhere.
If the USA dropped tariffs and bans against Chinese car companies, American car companies would need to improve rapidly to survive. Instead, they’re selling us $50,000 decade old dinosaur designs like the Chrysler Pacifica.
This literally already happened to them with Japanese cars. And let me tell you, you don’t want to drive a Chevrolet from before Honda and Toyota sold cars in the United States.
Not protectionism related, but look at the MacBook Neo competitors shown off by Dell and HP at Computex. Competition drives innovation and cost reduction for consumers. Apple forced HP and Dell to make an affordable aluminum chassis computer for the masses and consumers are the winner in the situation.