Don’t be lulled into pondering China is failing in its objective to develop into the world’s largest semiconductor-chip producer. That’s the conclusion some are drawing from such troubles because the chapter of nationwide champion Tsinghua Unigroup and the high-profile arrests of a number of officers and executives. If China is failing, the argument goes, why is Washington launching an costly industrial coverage to subsidize home semiconductor manufacturing?
This evaluation is emblematic of the Western behavior to underestimate the power and resilience of China’s financial system, political system and industrial methods. China’s statist method suffers from endemic waste, misallocation of capital and corruption. China isn’t assured to succeed just because Beijing desires to. However the notion that these arrests and chapter sign China’s failure lacks proof.
