The problem is that on the long run you lose the knowledge to produce physical goods locally, all it takes is a few years and once it's gone it's extremely hard

The problem is that on the long run you lose the knowledge to produce physical goods locally, all it takes is a few years and once it's gone it's extremely hard to build it back. The other problem is that if there is a war, a pandemic or anything impacting production and/or deliveries your country is now alone. If 80% of your economy is based on tourism and other services but what you now need are cars, masks or weapon parts you're in for a bad time > I get that they dump loans and the government allows for subsidies. It's the same in the US/EU, all these companies would have died long ago if they were not propped up now and then