Visitors study a semiconductor display at the Semicon China trade fair in Shanghai, on March 17. The huge sums Beijing has ploughed into the sector have resulted in spectacular failures and the emergence of thousands of new companies that have no technological expertise but wish to capitalise on the subsidies. Photo: Reuters
Visitors study a semiconductor display at the Semicon China trade fair in Shanghai, on March 17. The huge sums Beijing has ploughed into the sector have resulted in spectacular failures and the emergence of thousands of new companies that have no technological expertise but wish to capitalise on the subsidies. Photo: Reuters
Chang-Tai Hsieh
Opinion

Opinion

Chang-Tai Hsieh

Why US attempts to thwart China’s industrial policy are a costly mistake

  • Growth in China’s business sector has been fuelled not by support for state-owned firms or industrial policy but by local governments’ backing of private firms
  • If the US forces China to end its support for state-owned firms and roll back its industrial policy, it would only remove the shackles on the private sector

Visitors study a semiconductor display at the Semicon China trade fair in Shanghai, on March 17. The huge sums Beijing has ploughed into the sector have resulted in spectacular failures and the emergence of thousands of new companies that have no technological expertise but wish to capitalise on the subsidies. Photo: Reuters
Visitors study a semiconductor display at the Semicon China trade fair in Shanghai, on March 17. The huge sums Beijing has ploughed into the sector have resulted in spectacular failures and the emergence of thousands of new companies that have no technological expertise but wish to capitalise on the subsidies. Photo: Reuters
READ FULL ARTICLE