Re: State subsidies will allow Chinese firms to eat everyone's lunch
"Japan almost put Intel out of business in the early '80's by dumping RAM on US markets".
That, of course, is the standard story as always, in reality Japan was just better at it with a higher yield per wafer, if I remember the expression right.
There is a very interesting book about Intel, the name is "Inside Intel": Andy Grove and the Rise of the World's Most Powerful Chip Company by Tim Jackson.
Lots of interesting stuff for us old enough to remember.
The question about subsidies is interesting too. On the other hand international trade and agreements try to keep it fair, (like within the EU too), but on the other hand everybody would like its government to support domestic industry and the country. Remember how many wanted the UK government to do something regarding ARM when a Japanese company bought it.
Regarding the USA I suppose some Americans tend to forget that the worlds largest company, the US Army, is a state subsidized company helping lots of other companies in the same manner too, like say Boeing. Only the Chinese can compete at a similar level today.