At this point, it’s no secret that China wants to be a superpower. It wants its own share of the world stage. And frankly, some think they want world domination. I can see that.
Yet, recently, they’ve begun cracking down on their own tech companies. Penalties here, canceled IPOs there, and it’s almost exclusively in their tech sector.
Some high-profile examples:
So why would a nation vying for global power ax its tech firms, of all sectors?
Believe it or not, this may help China in the end…
You see, some might chalk some of these actions up to anti-trust. Fair enough — competition breeds prosperity.
But in the US, the same thing is going on with Big Tech firms like Google, Facebook, and Twitter.
The thing is, the US government generally only goes after those big companies that threaten market competition.
China, on the other hand, is taking the hammer to the entire tech sector. Or is it?
It’s actually not. See, the examples listed above are the consumer-facing Internet and software firms. We haven’t talked about other parts of tech, such as hardware manufacturing. It turns out that China is pouring money into semiconductors and AI.
In the US, the government lets firms pursue profits, within regulatory reason, of course. They don’t make every single public firm place American interests ahead of profits to a large degree.
China might be a bit different. Given its history (its “Century of Humiliation” and whatnot), and their system of government (the CCP), they seem more likely to make Chinese interests #1 the economy.
Maybe the Chinese government believes some consumer-oriented tech companies draw bright students away from the “harder” fields. Plus, the products these companies make might distract kids, leading them to poorer school performance, leaving China with fewer students pursuing these R&D-intensive fields.
Consider this: you need semiconductors and many other types of hardware to build and maintain a modern military. They need it to surveil their adversaries and, as you may know, their own people. As China directs its efforts to consolidate and increase its geopolitical power, it only makes sense that they order money to move into these industries.
So sure, maybe China is destroying its “Silicon Valley” types of companies…
But its tech sector is alive and well. Just a different side of the tech sector.
Naturally, a lot of capital will flow into China over the coming years, whether people like it or not. There will be a lot of profit opportunities, soon enough.
And at Profit Flow Group, we’ll be standing by, ready to teach you how to take maximum advantage.
So if you want to learn how to spot only the most prime of these opportunities...
