IMO, the US business industry has become over-financialised to the point of self-sabotage. R&D and capital expenditure are seen as "bad" things to have on accounting statements. Combine this with Jack Welsh type CEOs who do everything they can to cut out "costs" on financial statements and you get organizations like GE turned into (badly run) banks.

Cisco is now essentially a publicly traded PE firm that buys up other companies to milk dry. Most internal development is outsourced by suits far removed from any qualifications on quality.

We all know the foibles of Boeing, where accountants made the final calls on everything.

The only innovations the traditional American car companies seem to be able to focus on is how to make cars bigger to increase margins. It's ludicrous that it took a new company (Tesla) to make electric cars available.

I could go on. This is not to say that other countries (including China) don't have their own issues with their business climate, but the United States has an environment where some of the smartest and best paid people in the country are working their asses off to find out better ways to show ads (Google/Facebook).

Well the good news is we just destroyed our education and research sectors, too, so we'll catch up to China, uh... any day now...

I know, right? I think all we have to do is follow their lead in having near slave labor /s

That is the direction we're heading in, yes.

Everyone acts like the C8 corvette doesn’t exist when they shit on American cars. Actually GM is an innovative awesome company.

The C8 has topped many “top car” lists since it came out in 2020. The reviews on it are universally excellent and it gaps pretty much anything that the turn-signal hating BMW crowd manufactures both in literal performance and in design.

The Corvette is a pretty niche vehicle though

Also there's no longer really any such thing as an American car. Everything now is some globalized mess of parts from brands here and there. Made in factories wherever is most financially convenient.

That's ultimately what you get when you have a system that 1) has most of its money held by the retirement/pension funds of a generation that didn't have enough children to sustain organic domestic economic growth and 2) has incentivized returns to those institutional investors at the board and c-suite levels of most companies.

I mean if we're talking about generations that didn't have enough children to sustain organic domestic economic growth, then China is actually ahead of us there. Their birth rate plummeted below replacement well before the US's did.

yep bingo

China's definitely much more advanced that it was twenty years ago. The science, design etc. was much worse than the west, now it's on par or sometimes ahead.

New Chinese phones and cars are incredible.

Yeah, I was just comparing BYD twenty years ago and now.

2005 you had the BYD F3 which was like a bad Corolla rip off https://en.wikipedia.org/wiki/BYD_F3

And now you have them getting the record for fastest production car https://www.topgear.com/car-news/electric/yangwang-u9-xtreme...

Agree. I visited China recently and every time we ordered a Didi (equivalent to Uber there) we were surprised with their vehicles, we used to order “deluxe” ones and boy we got some fancy electric vehicles.

Their bullet trains are also excellent.

The bigger risk specifically with roomba may be that people who have connected their roomba’s to wifi and have their floor plans mapped and possibly in the cloud.

Wonder if the deal is going to include transfer of cloud data as well.

There's very low value to the Chinese state to having detailed floor plans of a random person's house. Or even a prominent person's house. A lot of this stuff is semi-public domain regardless as many real estate listings will include a floor plan.

The camera/microphone is more worrying.

There was an interview from a Chinese Founder and he said something that I think accurately sums up the difference.

US R&D may be on top in some areas especially AI or Frontier Tech. But it is at best 2x better than China. What sets Chinese companies apart they can have product from Lab to market and manufacturing at scale that is at least an order of magnitude faster than US, not to mention a lot cheaper.

Motorola Smartphone is now Chinese owned. I dont think people even realise it. Most of the Consumer Appliance from Washing Machine to Microwave are not just manufactured in China, the brand itself are sold off to Chinese companies as well. Toshiba Home Appliances for example. Even if they are not Made in China, they are made by a Chinese Companies in SEA Region.

For TV, most of the LCD Panel are from China. TCL and Hisense are not just copying but innovated with newer panel technology. CSOT Produce the Panel for Sony top range Bravia 9 TV. Inkjet Printing OLED commercially coming out this year.

Even Agricultural tech China is catching up, something traditionally US is strong in. And some of those results are coming in already.

There are a lot more in the pipeline they have been hammering for the past 10 - 15 years and they have finally coming out where most mainstream media haven't covered because they have no idea. I remember reading Bloomberg around 12 years ago saying Tesla Battery facility being biggest in the world and they have never heard or reported anything about CATL.

And there has been a lot more Chinese companies exporting directly. I am wondering if anyone have heard of a brand called laifen where it was massively popular on IG for their toothbrush a while ago. They called it how Apple would have design and make toothbrush. And they are using exactly the same Apple packaging box for their product as well.

Even Beauty products where it used to be R&D and manufactured in South Korea. China is now picking up a lot of market share as well. And it is apparent in Cosmoprof, largest beauty and cosmetics trade show.

Edit: I forgot to mention something I think is bigger than AI. But doesn't get the headline like AI. Robotics. Not only do I believe they are far ahead in Humanoid Robots, they are also manufacturing it better and faster and cheaper. They are already deployed in some places in production already.

Very unfortunately, they have passed escape velocity and there is no turning back. China has won. And they are not Japan in post WWII where US can force them give up certain things. Nor do they have a free flowing currency, arguably their biggest moat where the whole bubble may burst. Barring any black swan event China will dominate in nearly all consumer industries along with other adjacent industries. And I am not sure how the West or even the rest of the world can do about it.

And I am writing this on the day they announced [1] Jimmy Lai was found quality under Hong Kong's National Security Law.

[1] Jimmy Lai, Hong Kong tycoon and democratic firebrand who stood up to China

https://www.reuters.com/business/media-telecom/jimmy-lai-hon...

  Very unfortunately, they have passed escape velocity and there is no turning back.

Unfortunate in what sense?

   And I am not sure how the West or even the rest of the world can do about it.

The last 200-250 years seems to be an abnormal period in which China was not a superpower. Historically, China has always had 25-40% of the world's GDP. It's been so long that many generations have lived and died without seeing China at the top. I think it's kind of neat for this generation to witness it.

It is unfortunate given China's abysmal stance on human rights, freedom of information, and pollution.

Compared to the current hegemony? you must have never felt yourself on the other end of "spreading freedom and democracy"

Compared to the previous dominant superpower of the last 100 years (USA)?

Yes, obviously.

https://www.dol.gov/agencies/ilab/against-their-will-the-sit...

Fortunately, China is not strongarming or invading the rest of the world.

You mean like Taiwan?

It's funny that we are running into the same problem that the British had with China in the 19th century:

China doesn't need or want anything from the West, they do not trust the West and they certainly do not want to rely on the West.

The last time the British came up with the ingenuous opium plan. But that backfired into the communist takeover in 1949.

Not to disclaim Britain's & France's atrocities in China - but blaming Mao's victory on those is simplistic at best. China is not a cardboard NPC village, where nothing happens unless the PC's visit and start pulling strings. And while various Chinese people may find it convenient to say "because $western_country did $thing", 99% of actual Chinese decisions are made from their own motives, for their own benefit, with minimal-at-best regard for Westerners.

I am not blaming the Western powers at all and neither did the communists. China was weak and they only had themselves to blame for it.

And of course the Chinese don't give a shit about Western interests. It is the duty of any Chinese government to take care of their own first.

Other than customers

China loves KFC.

There are other American brands that do well such as Nike, The North Face, Coach, Polo, and Estee Lauder.

And while Hollywood movies have been in decline in China, Zootopia 2 did amazingly well recently.

15 years ago I would've agreed. I saw SUVs with obvious BMW inspired styling cues that had manufacturers badges that were conveniently the same place and the same size as the BMW roundel. I saw Starbucks and Pizza Hut look-alikes. I saw the dismay on the barista's face when I ordered a coffee drink instead of tea. They regarded the US with a sense of awe. When I told my Chinese colleagues it was unlikely that the US would lead the way in nuclear power because only China could do it at enough scale to succeed, they were shocked.

Now the Chinese have their own expensive coffee brands. They even have what one could call private equity with Chinese characteristics: private equity in China is strategic, mostly minority stakes, and often behaves like late stage VC.

I'm not making a moral comparison here. The impact of bad PE deals in China is that an often technology oriented pre-IPO company goes bust, whereas in the US your local hospital will close. Make up your own mind which is worse.

If China doesn't want or need anything from the West, then why do they kvetch so loudly when the US implements trade barriers?

>But that backfired into the communist takeover in 1949.

This is very insightful. But it's more profound than what's observed on surface. There was a chain of reactions along with many coincident events.

If we consider a collection of human bounded by different glues, i.e. tribes, culture, religions, ethnicities , political beliefs, cooperate, LLCs, etc., as a new form of creature superior to nature animals, then Chinese as a new creature is very special one. Maybe next to Jews.

The failure of Opium war and consequential changes caused a humiliation that created a special stress on this creature, resulted in a strong response which also drove many revolves inside China. Chinese elites seeking different solutions as reaction to those changes.

One big revolt lead by revolutionaries , the predecessor of the Nationalists who fled to Taiwan in 1949, overthrew the last dynasty of China. However it didn't address the issue of humiliation. The elites continue to seeking solutions while tried to reunite China. CPP was one of them.

After WWII, only 2 contesters survived. Another 4 years of civil war later, the Nationalist lost and Republic of China migrated to Taiwan. In 1971, ROC lost the seat in UN, CPP took over as the representative of China.

Both CPP and the Nationalists are nationalists , among others who lost in the history. The majority of early members of CPP, even strongly believe in the Marxist ideology, deep in their heart they are the same as the other nationalists even they hate and kill each other.

Marxism is a tool which is very effective proved by history, used by the unique creature called China to restore its honor and dignity, without the user of the tool even realizing it. Today it is called "Socialism with Chinese character", a heavily modified and unrecognizable version of Marxist ideology.

That's a little long version of

>that backfired into the communist takeover in 1949

I wish I have time to write a book about it as real long version after some time, maybe 10 years.

And then the Chinese end up stealing any actual IP that may get the US company ahead by being there.

Also, is it still difficult to bring profits back to the US?

Damn'd if you do, dam'd if you don't.

Why do American companies have to rely on artificial protections like IP in order to compete? Don't forget it's only "stealing" if you're culturally inclined to see IP as actual property, whereas in China the idea has long been that ideas are common good, even predating Marxism.

So stealing trade secrets is legal in China?

Or do they publish all their IP on a government site for all to see?

They introduced more and more IP laws due to requirements from the WTO[https://www.wto.org/english/thewto_e/acc_e/completeacc_e.htm...]. At first they didn't prosecute them, then they did but only for foreign companies, and now we're at the stage where there's essentially legal parity.

Basically they had to play along to western rules that were baked into global institutions. But now they're getting to the point that they can start to lead the conversation.

Some further reading [0] could be a book like To Steal Is An Elegant Offense from William P. Alford for a longer history of the relationship to IP within Chinese society.

0: https://www.sup.org/books/asian-studies/steal-book-elegant-o...

> At first they didn't prosecute them, then they did but only for foreign companies

Funny how that works.

> Basically they had to play along to western rules that were baked into global institutions

Like making it mandatory to have a Chinese co-owner own 50% for all businesses created in China? I don't remember seeing that in the WTO rules.

> Some further reading [0] could be a book like To Steal Is An Elegant Offense from William P. Alford for a longer history of the relationship to IP within Chinese society.

Thanks for the book recommendation!

> Like making it mandatory to have a Chinese co-owner own 50% for all businesses created in China?

I'm not sure what this hat to do with IP laws, could you explain?

> Funny how that works.

It seems to make sense to me, but what are you suggesting?

R&D is very expensive and you want some protection for having borne that cost. If a competitor can just swoop in and clone your tech then they’re at an immediate, unfair advantage.

Yet china's economy where IP isn't respected seems to contradict your point. Why doesn't that counterexample make you change your mind on this?

You’re asking why Chinese companies aren’t stealing from each other?

How do you know they’re not?

Nothing happens in China without State approval so maybe the penalties for encroaching on a State backed entity are quite severe?

He's saying the opposite:

1. Chinese companies steal IP from each other all the time.

2. The Chinese economy is growing quickly and Chinese companies are out-innovating their US competitors in many segments.

And the question then is: do strong IP protections actually benefit innovation? Because China seems to be a counterexample.

There is a huge difference between "some protection" and blocking the competition for many decades, because an incompetent patent office has approved many exaggerated claims, either about things that are obvious and well known by anyone in the field, but nobody was shameless enough to claim them in a patent before, or else about things that the patent filer is completely unable to do in the present, but they are claimed in the patent for the case when someone else will figure how to do them in the future.

Today the vast majority of patents are not intended for any kind of licensing and they might be even completely useless if licensed, but they are only intended for preventing competition in the market where the patent owner is active.

In order to be useful, a patent system should start to require again that the inventor shows a working prototype that demonstrates all the features claimed in the patent. Moreover, the patents should expire much faster, certainly not later than after 10 years from being issued. Perhaps a longer validity could be accepted for patents owned by individual inventors, but in any case not for the patents assigned to the employers of the inventors, as most patents are today. Also, patent owners should offer "Fair, Reasonable and Non-Discriminatory licensing" (FRAND), otherwise the patent should be invalidated.

Patents aren’t the only means of copying something. I would imagine China has a very sophisticated reverse engineering skill set. Made even easier since pretty much everything is made there so if you want the specs of some component you can just call someone up.

So?

The entire Personal Computer revolution was built from reverse engineering the IBM PC, to start the clone market, which was legal in the US!

On the software side, both Apple and Microsoft were cribbing notes from all sorts of other places.

Remixing and iterating on mostly free ideas is literally how the US used to build things!

People get all huffy and puffy about how the US has stagnated and doesn't build anymore, and in the same breath get pissed that China doesn't kneel to our absurd IP laws!

The US COULD compete if we put building shit ahead of rewarding some shithead capitalist for someone else's work.

I'm not American.

Except that you have the technical know how to keep advancing, and have already been producing them before they hit market an have been reverse engineered.

Also a lot of research is already done at, or in cooperation of universities, or with research tax breaks.

Let alone the fact that a lot of patents are absolute bullshit. There are patents on UI elements, even black rubber handles with a hand grip. Not white ones, mind you. It’s insanity and stifles innovation.

But if patents and trademarks and copyright are so incredibly important for innovation, I guess that’s why stuff like math and theoretical physics has the lowest amount of innovation, right?

> artificial protections

Everything is an artificial protection by your standard. Laws are written for a reason.

IP is an incentive to develop the IP in the first place. Why would anyone sink huge amounts of money into developing IP if a competitor can just wait and then take it for itself.

And if its such a good idea, why hasn't China been a superpower for so long? America and Europe have been creating and innovating for centuries and millennia. In recent decades China has risen by replicating the West's technology and techniques. Where would China right now be without the West? What is the plan to surpass the West without someone else supplying the IP? Suddenly China is going excel at something at something they haven't done? Japan is instructive because they rose economically in a similar fashion.

A key difference is that the West are liberal democracies and there is strong evidence that freedom and a cosmopolitan society promotes innovation.

Which system is better isn't hard to spot. The naivete of some here is incredible.

> Everything is an artificial protection by your standard. Laws are written for a reason.

No it isn't and this comes across as a straw man. Competing on price, build quality, distribution, aesthetic, service support etc etc are all very real.

> Why would anyone sink huge amounts of money into developing IP if a competitor can just wait and then take it for itself.

How/why did we ever develop anything prior to 1710? And we can add first movers advantage to the list of "real" protections, as well as prestige, marketing etc.

> And if its such a good idea, why hasn't China been a superpower for so long?

Define superpower here? It seems to me that Western powers became global powers first because of colonialism, which A) was driven by materials not by IP, and B) caused direct harm to China.

> China has risen by replicating the West's technology and techniques. Where would China right now be without the West?

Was China in a bad position before the Europeans arrived? Since the Opium Wars they've been forced to play along or risk being wiped out completely. Where could they be without the west indeed.

> Suddenly China is going excel at something at something they haven't done?

Haven't they? It seems that they are very competitive for a host of practical manufacturing reasons that could have been implemented elsewhere if there had been a will or long term vision.

> Japan is instructive because they rose economically in a similar fashion.

Japan was completely neutered and propped up by the US for half a century while they "recovered." It's not a comparable situation.

> there is strong evidence that freedom and a cosmopolitan society promotes innovation.

Is there? Did Britain become a superpower because of its free and cosmopolitan society? Is being a superpower our end goal?

> Which system is better isn't hard to spot. The naivete of some here is incredible.

This isn't an argument at all, just an ad hominem not in keeping with site guidelines. I'm happy to discuss but strawmen and as hominems are very off-putting.

Not to mention that the US was notorious for IP theft until it would up at the apex of the international order. I presume as China becomes economically dominant it too will gradually shift toward rent seeking and patent enforcement.

Just wanted to point out that Roborock is now in a similar position - they have completely slept on the roller mop trend - and meanwhile other Chinese manufacturers are building better robots.

Yes, being able to pay wages that amount to slavery opens a lot of doors. There is a lot of positive Chinese sentiment on this website, much of it exaggerated, and all of their accomplishments pretty much hinge on being able to exploit their workforce, of which we just sort of wave our hands and dismiss it in these types of discussions.

Not to mention the blatant corporate espionage. They may have some of their own innovations, and I’m sure there are plenty of smart people there who, despite being oppressed, still find joy in building things. But let’s not pretend this is all due to excellence.

> It is complacency or is China just accelerating?

Specifically in the case of Roomba complacency certainly played a role. I have one of their robots for several years already, and while it mostly works fine for my usecases their app is a complete mess. Sometimes the roomba has an issue and aborts a run but there's zero to no detail visible in the app as to why that happened. I seem to be unable to look at old runs, see statistics over time, basically anything that might be useful other than the bog-standard basics, and even those are lacklustre at best.

I wouldn't be surprised if someone actually reverse-engineered their APIs and made a better app on top of them; the app is comically bad with little to no improvement since I've started using the product.

> American companies need to start designing in China, not just made in China.

Why does China have a bunch of electronics companies? Because people outsourced all their manufacturing to China. So all non-China has left, barely, is the hardware design. Cool, so let's outsource that too? So all non-China has left is, oops?