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It is difficult to compete with a strategic program like "Made in China 2025". We'll see. I'd guess, no change - the subsidy program in China will remain larges
by dchichkov 7y ago
It is difficult to compete with a strategic program like "Made in China 2025". We'll see. I'd guess, no change - the subsidy program in China will remain largest and most competitive, market will seeks subsidies of the largest program. The externalities, like the single point of failure that you've pointed out, will be ignored.
- magicsmoke 7y agoThe subsidies from Made in China 2025 won't be going to foreign companies since it's supposed fund Chinese companies and domestic innovation so they can have replacements for foreign tech IP. There should be no reason for the international market to think they can get some of that money.
- dchichkov 7y agoThe subsidies are used by foreign companies, by purchasing products subsidized by Made in China programs.
- aianus 7y ago> There should be no reason for the international market to think they can get some of that money. Unless the Chinese companies receiving the subsidies are barred from exporting their products, then the global market will buy those subsidized products and global unsubsidized competitors will suffer. You are not allowed to export state subsidized products per WTO rules.
- reaperducer 7y agoYou are not allowed to export state subsidized products per WTO rules. The Chinese government is well known for propping up domestic companies and playing favorites, and now suddenly you think it cares about international rules?
- aianus 7y agoNo, I don't think they care, but the rule is there on the books. It is obviously up to the other members of the WTO to enforce the rules.
- deleted 7y ago[deleted]
- robocat 7y agoSurely the US stimulus package counts as a government subsidy to uneconomic private business?