Why is China smashing its tech industry?
&gt; China may simply see things differently. It’s possible that the Chinese government has decided that the profits of companies like Alibaba and Tencent come more from rents than from actual value added<p>Excellent observation, and I hope, for China&#x27;s sake, that this is the reason.<p>The United States is likely in for a long-term rude awakening when it finally realizes that an economy predicated on negative-value-add activities like clicking heart icons on photos, repackaging financial securities into products with impossible-to-detangle risk profiles, advertisement and addiction optimization, and political outrage, will not remain any definition of &quot;global superpower&quot; for long.<p>Facebook and Netflix are excellent examples of companies that contribute greatly to our GDP whilst simultaneously draining our reserves of <i>actual</i> capital and mental health.