Subsidies to Chinese Industry: State Capitalism, Business Strategy, and Trade Policy
- ISBN-10
- 0199339783
- ISBN-13
- 9780199339785
- Category
- Business & Economics
- Pages
- 272
- Language
- English
- Published
- 2013-03-27
- Publisher
- Oxford University Press
- Authors
- Usha C.V. Haley, George T. Haley
Description
How did China move so swiftly in capital-intensive industries without labor-cost or scale advantage from bit player to the largest manufacturer and exporter in the world? This book argues that subsidies contributed significantly to China's success. Industrial subsidies in key Chinese manufacturing industries may exceed thirty percent of industrial output. Economic theories have mostly portrayed subsidies as distortive, inefficiently reallocating resources according to non-market criteria. However, China's state-capitalist regime uses subsidies to promote the governments' and the Communist Party of China's interests. Rather than aberrations, subsidies help Chinese businesses and governments produce, stabilize and create common understandings of markets; the flows of capital reflect struggles between critical Chinese actors including central and provincial governments. Concepts of state capitalism including market-transition theory, the multi-organizational Chinese state, and state as paramount shareholder, create complex and relevant understandings of Chinese subsidies. The authors develop independent measures of industrial subsidies using publicly-reported data at firm and industry levels from governmental and private sources. Subsidies include free to low-cost loans, subsidies to energy (coal, electricity, natural gas, heavy oil) and to key inputs, land and technology. Four sequential studies identify the growth of subsidies to Chinese manufacturing over time and effects on world industry: steel (2000-2007), glass (2004-2008), paper (2002-2009) and auto parts (2001-2011). Subsidies to Chinese industry affect and are affected by business strategy and trade policy. Business strategies include lobbying for subsidies and for protection from subsidized foreign competitors and managing supply chains to guard against whiplash effects of uncoordinated subsidies. The subsidized solar industry highlights how global business strategies and decisions on production location and technology development respond to production or consumption subsidies and include market (competitive) and non-market (political) strategies. The book also covers government policies and regulation on subsidies broadly focusing on domestic consumption (antidumping and countervailing duties) and domestic production (indigenous innovation).
Get the book
Other editions
-
- 2013-05-02
- 233 pages
- Paperback
- Oxford University Press
-
- 2013-03-27
- 256 pages
- Ebook
- Oxford University Press
Similar books
-
Subsidies to Chinese Industry: State Capitalism, Business Strategy, and Trade Policy
By George T. Haley, Usha C. V. HaleyHow did China move swiftly in capital-intensive industries without labor-cost or scale advantage from bit player to largest manufacturer and exporter? This book argues that industrial subsidies contributed significantly.
-
Chinese Trade: Trade Deficits, State Subsidies and the Rise of China
By Rich MarinoThis book provides two solutions to this endless quagmire: an increase in Western exports to China so that China and the West have more of an equal trade balance, or a very steep reduction of China’s exports to the West.
-
U.S. Tools to Address Chinese Market Distortions - Trump Administration Tariffs, Response to Chinese State Capitalism Industrial Policy Subsidies, Investment...
By U S Government, Senate of the United States of America, U S - China Security Review CommissionThis important report compilation contains the testimony of eight renowned experts at a hearing in 2018 exploring U.S. policy options available to address Chinese market distortions.
-
The Rise of China's Industrial Policy, 1978 To 2020
By Barry NaughtonThe Rise of China's Industrial Policy, 1978 To 2020
-
Ensuring Long-Term U. S. Leadership in Semiconductors - 2017 Report, Influencing China, Improving U. S. Business Climate, Moonshots for Computing,...
By U. S. Government, White House, Executive Office of the PresidentToday, U.S. semiconductor innovation, competitiveness, and integrity face major challenges. Semiconductor innovation is already slowing as industry faces fundamental technological limits and rapidly evolving markets.
-
Growth and Evolution in China's Agricultural Support Policies
By Fred GaleChina is perhaps the most prominent example of a developing country that has transitioned from taxing to supporting agriculture.
-
Chinese State-Owned Enterprises and U. S. -China Bilateral Investment
By CREATESPACE INDEPENDENT PUB, U. S. -China Economic and Security Review CommissionToday's hearing will examine three aspects of China's economic policy. The first is China's state-owned or state-controlled companies and industries, which together constitute an estimated 30 to 40 percent of China's economy.
-
HBR Guides to Building Your Strategic Skills Collection (3 Books)
By Harvard Business ReviewThis three-book set, which includes the HBR Guide to Thinking Strategically, the HBR Guide to Managing Strategic Initiatives, and the HBR Guide to Setting Your Strategy, will help you change the way you think about your work, manage your ...
-
Food Price Policy in an Era of Market Instability: A Political Economy Analysis
By Per Pinstrup-AndersenSince 2006, global food prices have fluctuated greatly around an increasing trend and price spikes were observed for key food commodities such as rice, wheat, and maize.
-
The State Strikes Back: The End of Economic Reform in China?
By Nicholas R. LardyThis book mobilizes new data to trace how President Xi Jinping has consistently championed state-owned or controlled enterprises, encouraging local political leaders and financial institutions to prop up ailing, underperforming companies ...