Resurgent industrial policies

More countries are considering and adopting industrial policies to address new challenges and boost domestic production. While China’s industrial policies have received positive attention for their effectiveness, they are also perceived to skew competition in favor of Chinese companies. The Center for Strategic and International Studies examines Chinese spending on industrial policies in comparative perspective.

The Biden Administration is using industrial policies and trade tools to build up the US solar panel industry, per the Progressive Policy Institute. However, its attempts to come to a compromise between participants in the industry are coming up short, according to this report from Bloomberg.

Electric vehicles may soon dominate automobile trade. The Mercator Institute for China Studies warns that Chinese exports could turn EU-China trade on its head, while Robin Harding reports in the Financial Times that Chinese EV exports could turn global trade on its head. Meanwhile, the Biden Administration is applying US industrial policies to support domestic EV manufacturing, according to Bloomberg.

Mentioned publications

Red Ink: Estimating Chinese Industrial Policy Spending in Comparative Perspective - Gerard DiPippo, Ilaria Mazzocco, and Scott Kennedy, Center for Strategic and International Studies, May 2022
China’s use of industrial policies is well-known. How much does China spend on supporting industrial policy, and how does the spending compare with their peers?
PPI’s Trade Fact of the Week: Solar Power Installation in the U.S. is Suddenly Slowing Down - Ed Gresser, Progressive Policy Institute, 18 May 2022
The Biden Administration is using a combination of industrial policies and trade tools to promote and protect domestic production of solar panels.
Biden’s Trade Plan to Kickstart US Solar Fails to Win Over Industry – Jennifer A Dlouhy, Brian Eckhouse, and Ari Natter, Bloomberg, 6 June 2022
When it comes to solar panels, the Biden Administration is struggling to find the right balance between industrial policies and trade enforcement.
"Made in China" electric vehicles could turn Sino-EU trade on its head – Gregor Sebastian and Francois Chimits, Mercator Institute for China Studies, 30 May 2022
How will Chinese exports of electric vehicles to Europe shape the EU economy and EU-China trade?
Electric vehicles accelerate China’s looming dominance as a car exporter – Op-Ed: Robin Harding, Financial Times, 1 June 2022
China’s emergence as a car exporter may upend global manufacturing.
Biden Keeps Funds Flowing to Build US Electric Vehicle Supply Chain – Gabrielle Coppola, Bloomberg, 3 June 2022
How is the US acting to support electric vehicle production?