Countries don’t have infinite supplies of labor and capital. The more of an economy dedicated to making cheap plastic toys or stitching tshirts, the less economic resources available for inventing the next iPhone. The very reason China is becoming more competitive in higher value-added economic activities is because China itself has moved away from low value economic activities - like manufacturing cheap clothing - these activities that have largely moved to poorer neighboring countries over the last decade or so.
And if you’re worried that the US is about to be out competed by China in the IP sphere, surely the US would be in a much weaker position if say 50% of its economy was focused on the production of cheap generic goods?
And if you’re worried that the US is about to be out competed by China in the IP sphere, surely the US would be in a much weaker position if say 50% of its economy was focused on the production of cheap generic goods?