‘Industrial Policy’ Is Back: The West Dusts Off Old Idea to Counter China

The U.S. and its allies have long pressed China to stop helping favored industries with subsidies, government preferences and other interventions.

Now they are beginning to copy it. Last month, the U.S. Senate voted for direct industry subsidies with little precedent: $52 billion for new semiconductor fabrication plants, called “fabs.” Other regions have done the same. The European Union has committed to nearly doubling its share of global semiconductor manufacturing capacity, to 20%. South Korea approved up to $65 billion in support for semiconductors, and Japan promised to match other countries’ semiconductor aid while planning to turn Japan into an Asian data center hub.

Chip-manufacturing subsidies are the most prominent of a range of interventions Western governments are rushing out to promote industries they deem strategic, from electric-car batteries to pharmaceuticals. Such interventions have increased sharply in both the U.S. and Europe in the past decade, according to Global Trade Alert, a trade-monitoring group.

Collectively, this represents an embrace of “industrial policy,” the idea that governments should direct resources to industries critical to the national interest rather than leaving things to the market.

Are you checking their taxes to make sure they are paying their 'fair share' before you give them taxpayer money?

Most politicians can’t spell semiconductor.

'The very decision concerning subsidies was made on the spirit of free market'

Totally agree, let's all expel China from our respective countries and continue to put pressure on them to quickly resolve this issue. ✊🏼📢✊🏼 ... 👊🏼😷

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Western governments will implement socialist policies in the semiconductor sector to counter the Chinese government. Until now, Western governments have implemented socialist policies depending on the situation. So governments are proficient in socialist policies.😏

Good. Embrace socialism next please

US Gov. has been doing subsidies like this for many, many, years. It's the normal way to bootstrap industries which the country needs. Nothing really different here. Research it yourself, if you don't believe me.

I always viewed Americans as more patriotic,why are they being bribed to get the vaccine?

They also laugh at our dementia ridden POTUS and the crazy politics that put him in office!

新冠疫情本来就把全球经济搞得压力很大，美国为一己之私，丢弃全球最强大国家的责任，继续遏制中国来给全球经济加大风险。

wow

so much for the free market

SEE IT COMING, WHO DOES NOT WANT TO IMITATE A WINNER

At least it's out in the open now, Communism is the model for the West now.

Whose taxes are being raised , and earned benefits cut, to pay for all these federal government gifts to private corporations?

That’s communism.

US has been subsidizing select industries for decades🙄

He’s already tired gone soon fat chance on the rest Pelosi is hysterical and ought to be clock running out fast now chuck s too don’t let the door hit you in the butt o the way out

How about Trump copying China's state-driven media and propaganda?

Not only state-driven investment, China has so many other things for the West to copy, with the strong and effective govn't leadership in controling Covid-19 being the most imperative. If the West can do what China has done, the pandemic wouldn't have spiralled out of control.

It is a Korean proverb that people who remain silent are more scared and skillful than people who talk for nothing.

An interesting point, although I see just one problem with it. It's a load of bollocks

Is this a reference to infrastructure? If so we’ve been doing this for a long time. Eisenhower’s highways for example

It's a balance and definitely a slippery slope but COVID made this need clear. The Federal Government needs to make targeted investments in selected aspects of industries so that we are not beholden to the CCP. Better ideas welcome but that seems 2b the unfortunate solution.

US is just a sub-branch of western civilisation, a nation state thinks they can change a civilisation state? 🤣 US is an ideological based society whilst China is a wisdom based society. Who will win? 🇨🇳🇨🇳🇨🇳🇨🇳

I thought US wants to change China , but as a matter of fact, China has changed US.😍🇨🇳🇨🇳🇨🇳🇨🇳🇨🇳

It’s about time and still not enough, China &(India) have 3x our population. Unless we forgive student debt, and make all STEAM, healthcare and education degrees ‘free’, we’re just prolonging the inevitable.

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