Kelley Johnson’s Skunk Works was successful because it rejected government controls and oversight. Read Kelley’s 14 rules of Management.
Johnson had a 15th rule that he passed on by word of mouth. According to the book "Skunk Works" the 15th rule is: "Starve before doing business with the damned Navy.“ because the Navy wouldn’t relinquish control of projects to the Skunkworks.
And it’s “funding” was paid contracts for performance, not an infinite credit line of free cash that Huawei got. Entirely different things. Huawei has sucked up a huge amount of Chinese resources, and there is no guarantee they’ve made a positive return, or ever will.
And SpaceX is a great example, just like the Skunkworks it’s NASA funding was pay for performance. SpaceX would have been out if business without the first contract, and would not be remotely as big today without the others, but those contracts have also saved NASA billions of dollars.
The vast majority of government funded projects are similar to the SLS, which has eaten up $15B+ in taxpayer funds without a launch. And when it finally launches 4+ years late it will be the most expensive launch system ever by a factor of over 2x per launch, and at least 20 times more expensive per pound than commercial launch systems. While reusing 40 year old engines!
Government backed financing for equipment sales, and government procurement for defence or large projects ... these are activities are miles apart in terms of operational realities.
The Chinese government is involved to this day in financing Huawei customers. This is a big 'no no' for supposedly 'free trade' because it's a huge strategic advantage for any competitor wishing to completely dominate a market and flush out competitors.
The CCP controls their national commercial banks and controls the central bank - they can direct financing to happen directly for what they perceive to the benefit of the state and make no mistake this is a lot of firepower.
Imagine if the head of he Federal Reserve, and the head of Morgan Stanley were directed to make strategic loans to Cisco's customers at he behest of the President.
Cash-strapped Western companies, getting really sweet financing and credit terms and 'one stop one shop vendor' from Huawei is enough to really spook everyone.
Neither is it really a 'side show' issue - it's quite a fundamental thing. The financing is as important part of the equation as the product itself. Much like the financial terms on your car loan or mortgage are fundamental aspects of your terms of ownership.
Imagine if Trump Directed the Fed to print money to give to Chase Bank, to lend money to TMobile Germany to buy gear from Cisco. This would be incomprehensible to us.
Johnson had a 15th rule that he passed on by word of mouth. According to the book "Skunk Works" the 15th rule is: "Starve before doing business with the damned Navy.“ because the Navy wouldn’t relinquish control of projects to the Skunkworks.
And it’s “funding” was paid contracts for performance, not an infinite credit line of free cash that Huawei got. Entirely different things. Huawei has sucked up a huge amount of Chinese resources, and there is no guarantee they’ve made a positive return, or ever will.
And SpaceX is a great example, just like the Skunkworks it’s NASA funding was pay for performance. SpaceX would have been out if business without the first contract, and would not be remotely as big today without the others, but those contracts have also saved NASA billions of dollars.
The vast majority of government funded projects are similar to the SLS, which has eaten up $15B+ in taxpayer funds without a launch. And when it finally launches 4+ years late it will be the most expensive launch system ever by a factor of over 2x per launch, and at least 20 times more expensive per pound than commercial launch systems. While reusing 40 year old engines!