Monday, November 11, 2019

Winning by losing.

“Industry watchers had feared that [#China] may use #rareearths as a weapon in its #trade war with Washington... some see the policy as a way to flood the market with ample supply, keep prices low and subsequently push out any American entrants.”

ht Mark Warner

This is how war is waged in business right now. And I don't even know how to stop it. It's a complete cancer.

Everyone does it. It's why Google buys money losing companies like Fitbit. Amazon does it. China does it. WeWork is famous for their brazenness.

You sell you product at a loss. Put all of your competitors out of business because they can't compete with you. Then you are a big giant mega corporation that can't fail. Profit!

1 comment:

Capital of Texas Refugee said...

Why does US business give a crap about socialist Venezuela?

Because of the oil, the gold, and the coltan deposits.

And also nearby cocaine-snorting Colombia, BTW.

But once again, this could all be avoided by getting what used to be Sons of Gwalia back online in Australia: before the mid-2000s, this wasn't that big of a problem.

Does China want to Make Australian Mining Great Again? :-)