After Congress passed $52 billion CHIPS subsidy:

-Micron, which had said it would invest $40b in the U.S. this decade, announced it will cut capital spending

-Intel cut its capital spending plans by $4b, but predicts a “growing dividend” for shareholders

  • Ehrmantrout [he/him]
    ·
    2 years ago

    Because China was much less reliant on the USSR by the late 1980s having had a decade of foreign investment as well as the Sino-Soviet split which meant that trade between them was much less.

    Another factor worth noting is the difference in the Indian and Chinese governments from 1950 to the early 1980s. Even though GDP wise, India and China were in a similar situation in the early 80s, structurally China was far ahead, with much higher literacy, better healthcare, less infant mortality due to the CPC being a lot more effective at making structural changes and improvements and spending a lot lot more on improving these indices. This meant that when the markets were opened in China, they had a much larger educated labour force capable of taking advantage.

    On top of that Mao had eliminated the landlord class, while in India, the landlords as well as the oligarchic families continued to hold power. A huge number of Indian politicians dominating Indian politics today are dynasts and scions of wealthy families in the past.