It’s not easily exportable without a de-facto annexation.

In any case, what I’m getting at is that China in its governance model, and its focusing on AI and so on is basically operating with Chinese characteristics, and these require…

After a while, the US changed the terms…

It is, and I would also add that when it comes to cars, or Sony, Japan was competing on essentially American terms.

No.

No, because it’s hard for them to actually export that particular governance mechanism. It would require a massive change in the privacy laws in the target country.

Yeah.

Yeah.

Taiwan can help.

The semiconductors, the chips…

Taiwanese components, too.

That’s right, and something that’s not like railroad tracks is that Huawei is really just a system integrator. If you look into its components, it’s coming from maybe US, Japan, Taiwan.

OPIC, JPIC, and so on.

…then it’s much more difficult to switch to another vendor’s 4G infrastructure.

If you chose Huawei for your 3G, which they sometime give out for free…

There is a path dependence. People who chose…

Yeah.

Not two years. Maybe twice that…

They already entered the pocket. It’s just the price is not the same as Huawei.

That’s right, because then the PRC essentially absorbed the research cost.

That’s right.

And then, we can all collectively wait half a year.

I think, first, everyone have to recognize that this is not about being price competitive. This is de facto state subsidy on the increasing return market. We need to understand in these terms.

Right. It’s seen as exceptional.

It’s very unusual.

Exactly, but then, if they become a company with 5,000 or more employees, there’s no state subsidy anymore, outside a few…

We do state subsidies up to maybe startup incubator stage, sometimes for strategic terms, like in DARPA Grand Challenge.

In US, in Taiwan, in Europe, in everywhere else, the states…

You see the PRC doing state subsidies in both market terms and non-market terms, to even public listed companies, and to companies well after the incubation stage.

I’m not focusing on any specific company because you can see that in pretty much everything that is a market of increasing return, meaning that the early mover has the advantage.

In any case, even if they had no connection at all, the PLA and the CCP have a lot of ways using non-market forces to assume direct control of any private owned companies anyway.

I do. Just look at all the party branches within large companies.

There is no meaningful “private sector company” coming from PRC. Every private sector company can become a state de facto owned company.

That was Huawei. The National Security Council and the NCC deliberated on this issue I think for couple of month, did a systemic risk analysis and decided that there really is no…

In any case, Terry, at the time, legitimately asked the NCC whether it’s OK for him to deploy a 4G core technology framework using…

Basically, in 2014, there’s a fierce debate because there were 4G infrastructure providers that really wanted to use PRC technology. Actually, that question was raised by Terry Gou…

Now, it was certainly not my idea, I cannot take the credit. [laughs]

We are introducing it in elementary schools today, actually, beginning this September.

They argue that this is the actual infrastructure more than roads and bridges, just to inoculate people against the virus of the mind status quo by showing how the newsroom works, by showing how people sow discord, how people and things like that to do a kind of who-done-it, this ...

That literally is a major literacy TV series, and the Ministry of Culture has a lot to do with this.

Yes, but we can do a lot using only that. I mean, each clarification message is a education, and we use public funding to fund the TV series, “The World Between Us,” which was sponsored by a special budget item by the government, and it’s very highly rated on IMDB ...

Right, and so the element of surprise is not there, is what I’m getting at.

Exactly. The only thing change is the democratization of this technology.

…is that a personal computer can now run it.

…for decades, and the only thing change…

It’s fine. A few things. Deepfake is not new. Anybody who watched “The Lord of the Rings” movie, the movie one with Gollum in it, have seen a deepfake, the motion capture of the Gollum’s face. That technique, the movie CG industry have been using them for…

Yes.

Exactly. Yes.

They do understand that. Otherwise, they would already…

You can’t censor a massacre.