8 ms·
Selling at a loss to capture market share, isn't that part of every SV startup? What makes it so bad in this case?
by hvb2 19d ago
Selling at a loss to capture market share, isn't that part of every SV startup? What makes it so bad in this case?
- phainopepla2 19d agoHeavy subsidies by the state.
- disgruntledphd2 19d agoSurely if this is a problem, then heavy subsidies from private capital is also a problem? If there's a difference, I haven't heard a good explanation of it.
- to11mtm 19d agoTBH I agree with you, even mentioned it in my other reply. Modern China is not like the Soviet Union; it is much closer to a capitalistic society, but instead of private equity there is a (heavier than even the most 'socialist' of EU nations) government planning push. In some ways, one could argue they're just taking lessons learned from all of the current systems and applying them aggressively in their centralized planning. As someone who has lived in/around the heart of the 'Arsenal of Democracy' for my whole life, gotta say they are taking better lessons learned than the US has.
- SpicyLemonZest 19d agoIt's not "so bad in this case". The domestic version is called "predatory pricing" and is illegal. In practice, it's easier to raise anti-dumping complaints than predatory pricing cases, both because the producers don't vote in your country and because the complaint doesn't have to be proven in a court of law.