China's State-Backed Tech Is Major Trade Sore Spot for US

choi

Keith Bradsher and Alan Rapperport, 中美贸易战的真正根源. 纽约时报中文网, Mar 27, 2018
https://cn.nytimes.com/business/20180327/china-us-trade/

, which is translated from

Keith Bradsher and Alan Rapperport, China's State-Backed Tech Is Major Trade Sore Spot for US. New York Times, Mar 27, 2018.

Quote:

"Take semiconductors, for example: China is a major customer for microchips, which are used to power computers, smartphones and an ever-widening array of other electronics. Chips from the United States account for just 4 percent of China's $260 billion in annual chip imports. While Chinese trade officials have been willing to discuss buying more chips from factories in the United States, that could take market share from Japan and South Korea. Washington has resisted that solution.

"The new factories often rely on technology that foreign companies have had to transfer as a condition of competing in the Chinese market, according to the United States. Global trade rules ban mandatory technology transfers.

My comment:
(a) "The "Trump Administration officials strongly object to the [Made in China 2025] program's goal of having Chinese companies dominate these advanced industries, particularly in the Chinese market."

A student in macroeconomics quickly learns that state-backed tech investments do not work. I grew up in Taiwan, which worshiped and parroted Japanese model of Ministry of International Trade and Industry (MITI; 1949-2001; 通商産業省). I came to US and watched Japan (including its tech industry) in gradual decline. Macroeconomics did not use Japan as a negative example 负面教材.
(b) Read the first several paragraphs and you get the general idea. Maybe you need not read the rest. The quotations are from the second half.