How does China success
China style capitalism, relying on 30% of export enterprises to absorb foreign new knowledge and technology to maintain the vitality of the Chinese economy. The totalitarian system guarantees the low price and efficiency of labor. The state strictly controls the accessibility of foreign exchange reserves, which helps the Communist Party-controlled enterprises to purchase intellectual property and technology from abroad to the maximum. Government-supported plagiarism of intellectual property, completely Make up for the original lag in innovation caused by totalitarianism system.
Combining totalitarian system and usage of foreign technologies, whether by purchasing or stealing helped China create a highly competitive export trade system.
With the vast consumer market of China, China can steal intellectual property by coercing technology transfer from western businesses entities in China. The biggest advantage of the free world is the innovative knowledge and technology cultivated by the free environment. Once China has access channel to harvest these knowledge and using them to manufacture cheaper goods, the Western world will lose its original system advantages and becomes free or low-cost resources of renovation.
To prevent China continue corroding the world, cutting off China’s access to the Western world’s innovative knowledge and technology is the only way.
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