The Wall Street Journal’s Editorial Board explains the flaws in China’s industrial policy.
- A new report from National Bureau of Economic Research finds that China’s government subsidies for business have little to no positive effect on the economy, and sometimes stifle economic production.
- The report also found that China’s subsidies are vulnerable to special interest politicking and fail to support emerging businesses.
- American lawmakers can learn from this report by supporting policies that allow the private sector, not the government, to pick winners and losers.
“China is a formidable economic competitor, but the key to its success is the energy and ingenuity of its people, not central planning and state subsidies. The strength of the U.S. system is free-market competition and a rule of law that allow innovation and the private allocation of capital. Washington won’t subsidize any more wisely than Beijing does.”
Read the full article here.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
