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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Farmer who wrote (125083)	11/7/2002 8:25:18 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 152472

John, we'll have to wait to find out where the event horizon for CDMA profits lies. India held itself back for decades by trying to imprison foreign capital in the way you describe. China too has been prone to that approach. I think China remains prone to that approach, as does something like half the human population in any country, including in the citadel of freedom, free enterprise and capitalism where communism, collectivism, tribalism, confiscation, kleptocracy and authoritarianism lurk and bubble through the surface; despite protestations to the contrary. Free and voluntary exchange of value is not a strong human propensity though it has gained ground over millennia. Theft and simple attack remain common to many transactions, including and especially government extraction of wealth from citizens. So, inasmuch as China, its companies and citizens, are able to steal property from others and use their creativities without payment, I'm sure they will. I don't think it will be as simple as it once was. It is not in the USA's interests to have QUALCOMM's value be stolen by China. Taxation keeps USS Enterprise afloat. With no taxes from QUALCOMM [and others] it'll sink. I don't think Americans will take kindly to that. They have leverage. They can, as with Japan before WWII when Japan went marauding into China, Korea, Taiwan etc etc etc, blockade the place and stop anything coming or going. 43% of China's external trade is with the USA and they are holding a few US$. It would not be good for Hu Jintao to have such a situation arise. The USA can also stop trade and confiscate the assets of other countries which don't go along with the USA protecting my property. The USA has military power sufficient to back up civilization. Civilization primarily means the respect of and free enjoyment of private property and person. Because China is such a large trading nation, I don't see why it would serve their interests to create a black hole with an event horizon just off their shores. Life inside a black hole was tried by Mao, North Korea, Albania, USSR and others. It is not as pleasant as life in the external expansionary limitless world. Which is why the black holes leak out into the cosmos, ceasing to exist. You have a valid point though. People do choose their own demise at times, usually through ignorance. New Zealand has been creating a black hole consfiscatory realm for decades. For a long time things can look okay from the inside. But compared with the outside, things are deteriorating. Even the USA is not immune to the tendency. Think Governor Gray of California for a start. Turkeys do sometimes vote for an early Xmas, thinking it sounds like a lot of fun, misunderstanding their role in the festivities. Irwin Jacobs is a man on a mission, to bring CDMA and mobile cyberspace to the world, so I can imagine he'd be very keen to get China into the realm. But I don't think he'd agree at the price of CDMA's destruction. The outcome will be huge CDMA developments inside China, but with plenty of payments outside the Black Hole of China to the Mothership in San Diego. By having China produce CDMA, as you say, there will be deflation exported and outside producers will struggle with declining margins. CDMA will be taken over by China and joint ventures with Korean and Japanese companies [and others]. QUALCOMM needs lowwwwww prices for CDMA products so that's great news. GSM has competed and done a great job against a vastly better technology. With billions of CDMA devices flooding out of China, GSM's days will be numbered. There's nothing GSM can do which CDMA can't, but there's a lot CDMA can do which GSM can't. China's low costs will drive the process quickly. Which is good. Why do you think there are such agreements that no payments to the Mothership will be made? I haven't seen that, that I can recall. Mq