Comments on: China gaining on U.S. chipmakers, CEO says

With semiconductor industry improving rapidly, country could achieve technological parity with U.S. in a few years.

[CNerd2025]

Short in China

Hey, since this is on the C|Net "Business Tech" channel, I'll bring up some other economic information. Apart from the fact that at the current rate, China appears to be rapidly moving toward parity with US markets with respect to chip-manufacturing, thist article pointed out the critical flaw with Chinese business in general: government spending. In the United States, government is not the investor in technology, investors are. Is anyone besides me skeptical about the fact that the Chinese government is spending so much to acheive parity with the US semiconductor industry? I'm even more skeptical because China's central bank is absolutely awful. How awful? Let's say that conservative (Western) estimates of Chinese non-performing, zero-percent interest loans are in the 40% range. More pesimistic economists believe the rate may be higher than 50%. This contrasts with the "official" (doctored) figure of "one or two percent." Think about the Asian financial crisis of 1996-97, only much much much greater. Chinese banks not only have the horribly inefficient relics of communism but also are structured badly much like the Japanese banks. Beijing is spending much more money than it has; Hu and his henchmen know that. China is not worth anyone's investment. I'd go short in China in a heartbeat. But to go long, well I'd have to quote "How the Grinch Stole Christmas": "I wouldn't touch [it] with a...39 1/2 foot pole!"

[GrandpaN1947]

ok but

I wouldn't mind having one of those American jobs the Chinese are enjoying right now. The Chinese government is spending too much? They're spending it on their people! And the American government? Now who's long term.