History shows us that industrial policies seldom foster innovative or competitive companies. In important ways, they can do more harm than good.
WASHINGTON is working up a sweat over China’s industrial policies. There are fears Beijing will build technology companies and advanced manufacturers capable of squashing American rivals by lavishing aid on favoured sectors. Many of the tariffs the US plans to impose are aimed at products generated by this state-led agenda, most of it under the “Made in China 2025” programme.
Yet this is less scary than it sounds. History shows us that industrial policies seldom foster innovative or competitive companies. In important ways, they can do more harm than good.
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