>> they're more often than not held at a disadvantage by domestic governments
I think you misunderstood this. When domestic competitor arise against American tech, the domestic government tends to explicitly favour those competitor against American tech, placing the latter at an disadvantage.
You can see India or China or Korea or SEA where they have their own favored food delivery apps and internet services. Even in the EU the local LLM companies like Mistral are favored by local businesses for integration over OpenAI. Clearly American tech hasn't actually displaced serious domestic competitors, so the rare earths comparison fails when the USA in contrast is far more willing to let local businesses fail.
I think you misunderstood this. When domestic competitor arise against American tech, the domestic government tends to explicitly favour those competitor against American tech, placing the latter at an disadvantage.
You can see India or China or Korea or SEA where they have their own favored food delivery apps and internet services. Even in the EU the local LLM companies like Mistral are favored by local businesses for integration over OpenAI. Clearly American tech hasn't actually displaced serious domestic competitors, so the rare earths comparison fails when the USA in contrast is far more willing to let local businesses fail.