The West has long been doing "industrial policy". At least since the end of WWII, and to some degree since before as well, but especially during the Cold War and even since then. You can say that the UK, France, Japan, South Korea, Taiwan, etc. were all autocratic all that time if you like, but most wouldn't. Maybe today more people would feel that having an industrial policy makes a country autocratic, but keep in mind that industrial policy is not usually practiced by putting a gun to a business' executives' heads -- no, industrial policy is often practiced via incentives and disincentives, with force being very tenuously indirect.