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They are not choosing technological stasis though, the actual tech firms are remaining untouched, it's what we would call derivative tech firms that are getting cut down to size.

No need for tank threads, just get them job at Foxconn and they will kill themselves in due time.

Another aspect is that they probably reached the limit how much can they advance some fields via tech theft and need more engineers on these projects, so they are killing two birds with one stone, reining in an ostensibly parasitic sector before it got too powerful and redistributing a limited...