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"Subsidies to Chinese Industry: State Capitalism, Business Strategy and Trade Policy" by Usha Haley and George Haley, deals with relations between companies and government policies. [It] resorts to an exhaustive empirical investigation without appealing to the blah-blah-blah ideological, often hypocritical, false opposition between states and markets in contemporary capitalism."

"What happens when a nation openly rejects Ricardo, desires absolute, not comparative, advantage, and employs massive state subsidies to attain that end, is the subject of Usha and George Haley’s comprehensive and groundbreaking book Subsidies to Chinese Industry: State Capitalism, Business Strategy, and Trade Policy…Haley and Haley offer an important insight: Chinese policymakers view firms’ bottom lines differently than do Westerners…”

“This richly researched book provides a much-needed foundation for grasping the serious and growing threat posed by China’s massive subsidization of its export-intensive strategic industries, which is harming industrial growth in the West.  Upending conventional wisdom, the book shows that China’s success does not stem from cost advantages as much as from subsidies calibrated for world-market dominance. Cutting-edge manufacturers and workers in the United States and Europe are paying a heavy toll.  As an executive of the largest solar-technology manufacturer in the Americas, which concluded one of the biggest trade cases ever brought against China, I can attest that traditional trade law and policy approaches, on their own, may not be enough to combat China’s state-engineered export juggernaut.  In light of the massive scale of subsidies supporting Chinese export manufacturers, China’s growing reliance on state-owned enterprises, its disregard for intellectual property protections and its lack of transparency, Usha and George Haley have provided important recommendations to ensure fair and robust competition across the oceans as well as a bright economic future for our peoples.” 



From Marshall W. Meyer, Tsai Wan-Tsai Professor, The Wharton School, University of Pennsylvania

Subsidies to Chinese Industry is a treasure trove of data on Chinese subsidization of four key sectors—steel, glass, paper, and auto parts. It is must reading for anyone seeking to understand China’s low-cost advantage and, crucially, whether this advantage is likely to remain.”


From Ingo Walter, Seymour Milstein Professor of Finance, Corporate Governance and Ethics, Stern School of Business, New York University


"A definitive and fascinating study of China's explosion onto the global markets for manufactured goods on the back of a single resource and the unintended consequences in capital allocation that will take years to return to alignment with basic principles of comparative advantage. The role of China's curious blend of market-driven economics and direct state involvement is creatively dissected here to provide valuable insights into what comes next."




"This book is an essential read for American business leaders and trade policymakers. The Haleys argue that a vast system of subsidies to Chinese industries plays a more important role in their mercantilist policy than currency manipulation. This strategy largely results from a particular view of success: that technology acquisition provides a key goal in Chinese business operations, even at the expense of profits. But another possible explanation is China’s “shift strategy,” where growth is believed to come by shifting from low-productivity industries to high-productivity ones. Why does it matter? Chinese mercantilism has not only cost the United States a significant share of manufacturing job loss, but also has distorted the global location of and nature of production systems...”


From Calestous Juma, Professor of the Practice of International Development & Director, Science, Technology, and Globalization Project, Harvard Kennedy School


"This book is a highly instructive analysis of the role of subsidies in China's innovation system and global competitiveness."
Exploring and understanding how Chinese manufacturing subsidies affect global commerce and trade
The views and research on this website,, are based on material considered reliable at the time of writing.  Information and opinions expressed will be subject to change without notice.  We do not accept liability either directly or indirectly that may arise from investment-decision-making based on research or opinions on this website.  The views and research  on this website are those of the authors alone, and not of any institution with which they are associated.


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