This reverse flow of intangible assets helps explain why the export-driven development strategy is such a powerful one. And it also helps explain why China, in particular, has been so focused on holding down the value of the yuan, and so reluctant to switch to domestic-driven growth.
There’s plenty of evidence that China understands the value of these intangible assets.Â There are lots of stories that support that, such as this one:
â€œBOE got the technology they wanted. All we got was layoffs,â€ said Hwang Pil-sang, a Hydis worker.