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Here's how Japan avoided that problem, among other quirks of their setup that make them so successful in manufacturing sector. https://hbr.org/1984/07/simple-truths-of-japanese-manufacturing

I for one am not too sure that Japan and Korea want more competition. Going with the example of shipbuilding, this is how massive the disparity is between them and the rest of the west: Obviously China caters to a different sector of the market (cheap and low tech) than Japan and SK (reasonably...