alt Hacker NewsChinese strategy of monopolizing markets via low prices is strange, it has no moat, they win simply because they provide the best value. I mean, its great for us, I’m all for it, but it doesn’t have an end game where they can actually ever set prices.
They win because it leverages their strategic asset: a vast labor pool.
Right now they're trying to avoid the other side of that coin (low value trap) by integrating vertically.