Afaik protectionism was only relevant in the development of certain industries in China, i.e. high technology. A middle class would've been created on the back of apparel, shoes, injection molding, electronics assembly alone.
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Replying to @Molson_Hart
Well yes if you have a huge labor price difference then you dont need to add anything on top of that. By definition protectionism only applies in cases where you are not competitive. I mean youre probably right to an extent but question is to what extent.
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Replying to @gsvigruha
Is that true? Africa is not exporting much besides raw materials and their labor is cheap. I think you really do need infrastructure and a few other things in order to compensate for the disadvantage of sea shipping...in order to compete. All I'm saying is that it's possible that
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Replying to @Molson_Hart @gsvigruha
protectionism was a bug, not a feature of the creation of their middle class. It probably would've happened anyway. It's unclear as to whether it was needed to compete in high tech. What areas are they doing that successfully? ZTE/phone tech? Protectionism not needed for that.
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Replying to @Molson_Hart
I don't think we can objectively settle this :) also they might not need it now but 10 20 30 years ago? How do you know they would not all use Nokia had they opened up completely before they had high tech?
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Replying to @gsvigruha
Agreed. Fair point. Even the basic light industrial manufacturing I described all started with a foreign company coming to China, setting up a factory, and then using Chinese labor. The head engineer, the general manager, the head salesman, etc. would then go on to start his own.
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Replying to @Molson_Hart @gsvigruha
Re: Nokia - because they were all using Nokia? There are enough legitimately innovative and quality Chinese companies out there who were not protected to believe that they could achieve this stuff on their own: Alibaba, DJI, Tencent to name a few.
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Replying to @Molson_Hart
No I just used it as an arbitrary example. I'm not trying to downplay their ingenuity and competence, it's not a question of being capable to innovate but rather the market to be fully capitalized from abroad before you get to that level.
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Replying to @gsvigruha
Nor do I suggest this is China specific in any way btw. Hungary opened up much more in the 90s and we have only started to see anything remotely resembling innovation in Budapest recently.
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Replying to @gsvigruha
Every country is different. Hungary is smaller and lacks China's coast. It's really hard to say what is the ingenuity or other positive attributes of a country and what is a successful protectionist policy.
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At the end of the day though, we probably agree that it is probably somewhat useful at particular points in development to have protectionist policies in some industries in order to foster their growth.
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Replying to @Molson_Hart
Yeah, and I think definitely agree that it's near impossible to settle these things with anything even remotely resembling scientific accuracy. There's way too few data points for way too many variables.
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