The Chinese government being much more fans of a directed market than of a totally unregulated one (neither of which is a Free Market by the way - that thing only exists when barriers to market entry are incredibly low, and it’s not as if any Jack or Joe can set up their very own memory production cottage factory in their backyard, so it’s not possible for there to be a Free Market in RAM under current technology), they’ll probably make sure that RAM only ever leaves China as part of more complex products (i.e. computers, smartphones, tablets and so on) made in China, thus making also Made In China for those product lines be more competitive.
(In other words, want a gaming PC or smartphone with more memory - buy the whole thing from China or pay 10x more)
If properly managed this could boost quite a lot more digital electronics industries in China than merelly RAM.
It’s about complex products which contain RAM rather than other component.
Anything made in China which has RAM in it will have its price affected by the price of RAM so if Chinese brands of such products have access to cheaper RAM than non-Chinese brands, they can outcompete the latter on price whilst delivering similar quality products.
Personally I tend to assemble my own desktop PCs, but for example in the past when buying a Mini-PC I would pick a Chinese brand one if cheaper since the quality is the same. Now imagine if the Chinese brand is now 1/2 the price of the non-Chinese one because the former uses RAM from China whose price is nowhere as high as the hyper-inflated South Korean RAM - in this kind of device were the quality is the same, the Chinese product will always be the better option if it’s half the price because of using way cheaper RAM.
Honestly it’ll probably be more like 3 or 4 times cheaper. I’m excited for the effects of this to start to balloon outwards. Now China just needs a graphics card/GPU manufacturer that can be competitive.
The Chinese government being much more fans of a directed market than of a totally unregulated one (neither of which is a Free Market by the way - that thing only exists when barriers to market entry are incredibly low, and it’s not as if any Jack or Joe can set up their very own memory production cottage factory in their backyard, so it’s not possible for there to be a Free Market in RAM under current technology), they’ll probably make sure that RAM only ever leaves China as part of more complex products (i.e. computers, smartphones, tablets and so on) made in China, thus making also Made In China for those product lines be more competitive.
(In other words, want a gaming PC or smartphone with more memory - buy the whole thing from China or pay 10x more)
If properly managed this could boost quite a lot more digital electronics industries in China than merelly RAM.
Which other components are subject to this limitation in China?
It’s about complex products which contain RAM rather than other component.
Anything made in China which has RAM in it will have its price affected by the price of RAM so if Chinese brands of such products have access to cheaper RAM than non-Chinese brands, they can outcompete the latter on price whilst delivering similar quality products.
Personally I tend to assemble my own desktop PCs, but for example in the past when buying a Mini-PC I would pick a Chinese brand one if cheaper since the quality is the same. Now imagine if the Chinese brand is now 1/2 the price of the non-Chinese one because the former uses RAM from China whose price is nowhere as high as the hyper-inflated South Korean RAM - in this kind of device were the quality is the same, the Chinese product will always be the better option if it’s half the price because of using way cheaper RAM.
Honestly it’ll probably be more like 3 or 4 times cheaper. I’m excited for the effects of this to start to balloon outwards. Now China just needs a graphics card/GPU manufacturer that can be competitive.