The CCP has publicly explained that their strategy is indeed to dominate key sectors via gov subsidies, de-industrialize other nations and gain strategic leverage in the process.
The CCP has publicly explained that their strategy is indeed to dominate key sectors via gov subsidies, de-industrialize other nations and gain strategic leverage in the process.
Why doesn't America do that too? It seems to work really really well.
America does that for aerospace & some defense stuff. But the reason not to is that the industrial policy needed to do it like China does has the effect of reduced wages, longer work hours, and lower quality of life.
Two main reasons. It requires taking a lot of freedom / agency away from individuals, and redirecting much of the profits of successful enterprises to subsidies (and suppressing individual consumption and standard of living).
China has surpassed the US on standard of living, I'm not sure about individual consumption. To repeat myself, it seems to work really really well.
Median PPP adjusted income and disposable income tells a very different story.