Subsidies to Chinese Industry: State Capitalism, Business Strategy, and Trade Policy
"A provocative new book* by Usha and George Haley, of West Virginia University and the University of New Haven respectively, points to another reason for China's industrial dominance: subsidies." --The Economist"Here's an in-depth look at one nation's policy that has shaped global markets in four key capital-intensive industries--steel, glass, paper and auto parts. The husband-and-wife authors use publicly available data from private and governmental sources to develop their own measures of China's industrial subsidies. Their book--dense with data, charts, graphs, chapter endnotes, appendix, bibliography and index--should be valuable to fellow academics, business people, politicians, diplomats and general readers." --Pittsburgh Tribune-Review"Subsidies to Chinese Industryis a treasure trove of data on Chinese subsidization of four key sectors--steel, glass, paper, and auto parts. It is must reading for anyone seeking to understand China's low-cost advantage and, crucially, whether this advantage is likely to remain." --Marshall W. Meyer, Tsai Wan-Tsai Professor, The Wharton School, University of Pennsylvania"This richly researched book provides a much-needed foundation for grasping the serious and growing threat posed by China's massive subsidization of its export-intensive strategic industries, which is harming industrial growth in the West. Upending conventional wisdom, the book shows that China's success does not stem from cost advantages as much as from subsidies calibrated for world-market dominance. Cutting-edge manufacturers and workers in the United States and Europe are paying a heavy toll. In light of the massive scale of subsidies supporting Chinese export manufacturers, China's growing reliance on state-owned enterprises, its disregard for intellectual property protections and its lack of transparency, Usha and George Haley have provided important recommendations to ensure fair and robust competition across the oceans as well as a bright economic future for our peoples." --Gordon Brinser, President, SolarWorld Industries America Inc., Hillsboro, Oregon"A definitive and fascinating study of China's explosion onto the global markets for manufactured goods on the back of a single resource and the unintended consequences in capital allocation that will take years to return to alignment with basic principles of comparative advantage. The role of China's curious blend of market-driven economics and direct state involvement is creatively dissected here to provide valuable insights into what comes next." --Ingo Walter, Seymour Milstein Professor of Finance, Corporate Governance and Ethics, Stern School of Business, New York University"Subsidies to Chinese Industryisn't an easy read: It's an economic study and an academic treatise. But the industry research on which it is based, the issues it explores, and the conclusions it suggests are important. And, as the letters reproduced in the book's appendices demonstrate, the Haleys' findings are already being used to influence trade policy in the United States." --Strategy+Business"[A] comprehensive and groundbreaking book..." --The Breakthrough Institute"This book is a highly instructive analysis of the role of subsidies in China's innovation system and global competitiveness." --Calestous Juma, Professor of the Practice of International Development & Director, Science, Technology, and Globalization Project, Harvard Kennedy School"Subsidies to Chinese Industry... deals with relations between companies and government policies. [It] resorts to an exhaustive empirical investigation without appealing to the blah-blah-blah ideological, often hypocritical, false opposition between states and markets in contemporary capitalism." --Carta Capital