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This. Not only does giving credits and incentives to huge organizations harm other local organizations because competing on wages is more difficult for them now, it also increases systemic risk and transfers more power to the Goliath. When "everyone" is dependent on the too big to fail organization, that organization can throw around more threats that they will leave if they don't get what they want. Now everyone is beholden to it. These deals are bad all the way around.


Foxconn / Hon Hai had an extensive record of doing exactly this in Taiwan. I would be surprised if they haven't done the same in China.




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