[iknowSFR]

There’s a NYT’s interview several months back where the journalist phrased it as in America, you have to prove success first to get funded. But in China, funding comes first and the successful companies emerge.

[adventured]

Which isn't at all accurate. Venture capital specifically exists to fund first, in the pursuit of success later - and the US has been by a dramatic margin the leader in doing that for the past ~60-70 years.

[mensetmanusman]

China has this process at the city state level. They can leverage their pegged currency to keep their citizen’s purchasing power lower than it should be to fund anything.

A downside is that their consumption economy is low, all their geo neighbors view them as a threat (reducing exports long term), and this contributes to high unemployment as productivity increases.

[iknowSFR]

VC still requires startups to find themselves and prove something first. China basically has a program to do X and anyone can sign up to be a part of that program. All are funded and the winners emerge. I’m broadly generalizing that process but that’s not how VC approaches it.

[powerapple]

I think thats misunderstanding. China studied the US and learned from the US, the funding is almost the same way except the state funding has objectives other than returns. US has the best financial system, (well most effective and powerful). There is no way China can do better than the US, what we are seeing is that the objectives are very different.

[CalRobert]

That sounds more like Europe than America.

[powerapple]

Europe is like the US, money is owned by private but they are old money, not new tech billionaires, and does not take the risks as the US. In China, money is owned by the state, and they are willing to take the risks as the US. In this way, I think China is more similar to US than Europe.