, Columnist
Don’t Fear China’s Industrial Juggernaut
Efforts to make champions of entire sectors often fail, as Japan showed in the 1980s.
Assembling the Comac C919, the first all-Chinese modern passenger jet.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Washington is working up a sweat over China’s industrial policies. There are fears Beijing will build technology companies and advanced manufacturers capable of squashing American rivals by lavishing aid on favored sectors. Many of the tariffs the U.S. plans to impose are aimed at products generated by this state-led agenda, most of it under the “Made in China 2025” program.
Yet this is less scary than it sounds. History shows us that industrial policies seldom foster innovative or competitive companies. In important ways, they can do more harm than good.