Comments on Chinese spy chips: I would add a few things to that. 1) For a lot of companies they won't be so concerned. eg I did business that had connections with toys and no one would care about the sound chips in them having this so it would be far from all things drying up

Comments on Chinese spy chips: 

I would add a few things to that. 1) For a lot of companies they won't be so concerned. eg I did business that had connections with toys and no one would care about the sound chips in them having this so it would be far from all things drying up 

2) If such a government effort happened in China, these factories will go along to save themselves. They are factories things were outsourced to. They would not always be big factories (ie they are further down the supply chain). 

They will comply so that they don't get shut down by the government. It is really hard to explain the whole China mentality to people in the West. They can't appeal something in a court or anything like that. It is basically choose from a) do this and a small chance you get caught later in which case that customer has quite possibly already left or you have new ones anyway or b) don't do this, and get shut down now. What will you choose? Of course a)! 

China changes so fast that they tend to have a very short term vision for some things in business even if they can have a very long term national level vision.