Hello dear and loyal readers, this is an opportunity to share with you all contextualized information on how the great economic and financial powers use industrial and technological policies as a weapon of world war.
Much has been said about how China is at economic war with the United States of America, and to find out we don't have to find any formal statement from both states, yet the administration in the US has imposed draconian restrictions on China's access to semiconductor chips, while Congress has approved significant subsidies for the chip industry.
The truth is that this type of industrial and technological policy, a favorite of ambitious politicians around the world, has little chance of succeeding, but it should be remembered that targeted investment to promote industrial and technological control from a political standpoint cannot necessarily succeed, since it has been shown that modern society diversifies the use of technologies.
On the other hand, for hundreds of experts Beijing has used fair and foul means to acquire Western technology, so it is not surprising that despite its move toward the market, China has long maintained a strong state influence on the economy. Examples include high-employment SOEs backed by state-owned banks and other preferential policies.
China is spending heavily to gain control of leading-edge technologies. In the face of the growing debate on decoupling, more and more governments are responding with their own industrial policies.
SOURCES CONSULTED
Foreignpolicy. How to Win the U.S.-China Economic War. Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: Globaltimes.
