China's 21st Century Industrial Policy Spawns Robot Bubble
- China may halt issuing permits to produce electric vehicles
- Some 800 robotic companies have launched lured by subsidies
Photographer: VCG/Getty Images
China wants to own the 21st Century economy. That's why Beijing economic planners have mapped out a full-on strategy called Made in China 2025 to dominate in artificial intelligence, robotics, electric vehicles and other key sectors. The government is spending big on tax breaks and subsidies to get these industries off the ground quickly.
Call it industrial policy on steroids.
The U.S. and European Union chambers of commerce in China both warned in March the country is becoming more closed to foreign business, and its Made in China drive will make matters worse. (The Chinese government says the playing field remains level for local and global firms.) Put that question aside, though, and consider this: Will the Chinese strategy of throwing massive resources at new industries create world-beaters or end up being a massive waste of resources in an already heavily indebted economy?