[PDF] Subsidies To Chinese Industry eBook

Author : Usha C.V. Haley
Publisher : Oxford University Press
Page : 295 pages
File Size : 32,49 MB
Release : 2013-03-27
Category : Business & Economics
ISBN : 0199339783

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How did China move so swiftly in capital-intensive industries without labor-cost or scale advantage from bit player to the largest manufacturer and exporter in the world? This book argues that subsidies contributed significantly to China's success. Industrial subsidies in key Chinese manufacturing industries may exceed thirty percent of industrial output. Economic theories have mostly portrayed subsidies as distortive, inefficiently reallocating resources according to non-market criteria. However, China's state-capitalist regime uses subsidies to promote the governments' and the Communist Party of China's interests. Rather than aberrations, subsidies help Chinese businesses and governments produce, stabilize and create common understandings of markets; the flows of capital reflect struggles between critical Chinese actors including central and provincial governments. Concepts of state capitalism including market-transition theory, the multi-organizational Chinese state, and state as paramount shareholder, create complex and relevant understandings of Chinese subsidies. The authors develop independent measures of industrial subsidies using publicly-reported data at firm and industry levels from governmental and private sources. Subsidies include free to low-cost loans, subsidies to energy (coal, electricity, natural gas, heavy oil) and to key inputs, land and technology. Four sequential studies identify the growth of subsidies to Chinese manufacturing over time and effects on world industry: steel (2000-2007), glass (2004-2008), paper (2002-2009) and auto parts (2001-2011). Subsidies to Chinese industry affect and are affected by business strategy and trade policy. Business strategies include lobbying for subsidies and for protection from subsidized foreign competitors and managing supply chains to guard against whiplash effects of uncoordinated subsidies. The subsidized solar industry highlights how global business strategies and decisions on production location and technology development respond to production or consumption subsidies and include market (competitive) and non-market (political) strategies. The book also covers government policies and regulation on subsidies broadly focusing on domestic consumption (antidumping and countervailing duties) and domestic production (indigenous innovation).

Author : Usha C. V. Haley
Publisher :
Page : 233 pages
File Size : 40,74 MB
Release : 2013
Category : Capitalism
ISBN : 9780199332571

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How did China move swiftly in capital-intensive industries without labor-cost or scale advantage from bit player to largest manufacturer and exporter? This book argues that industrial subsidies contributed significantly. Economic theories have portrayed subsidies as distortive, inefficiently reallocating resources according to non-market criteria. However, China's state-capitalist regime uses subsidies to promote the governments' and the Communist Party of China's interests. Rather than aberrations, subsidies help Chinese businesses, central and provincial governments produce, stabilize and create common understandings of markets. Concepts of state capitalism include market-transition theory, the multi-organizational Chinese state, and state as paramount shareholder. The authors measure subsidies using publicly-reported data at firm and industry levels from governmental and private sources. Subsidies include free to low-cost loans, subsidies to energy (coal, electricity, natural gas, heavy oil) and to key inputs, land and technology. Four sequential studies identify the growth and effects of subsidies to Chinese manufacturing over time: steel (2000-2007), glass (2004-2008), paper (2002-2009) and auto parts (2001-2011). Subsidies to Chinese industry affect and are affected by business strategy and trade policy. Business strategies include lobbying for subsidies and protection from subsidized foreign competitors, and managing supply chains to guard against whiplash effects of uncoordinated subsidies. The solar industry highlights how decisions on production location and technology development respond to production or consumption subsidies and include market (competitive) and non-market (political) strategies. The book also covers government policies and regulation on subsidies broadly focusing on domestic consumption (antidumping and countervailing duties) and domestic production (indigenous innovation).

Author : Hong Sheng
Publisher : World Scientific
Page : 407 pages
File Size : 32,60 MB
Release : 2013
Category : Business & Economics
ISBN : 9814383848

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The Nature, the Performance, and the Reform of State-owned Enterprises provides a detailed description of state-owned enterprises (SOEs) in China with respect to both efficiency and income distribution. It shows that state ownership in the form of SOEs does not use resources efficiently and has a poor record in income distribution. Moreover, SOEs are found to enjoy unfair advantages in their competition with other firms. To illustrate the point, the book presents data revealing how favored policies, monopolistic powers, and subsidies benefit SOEs. These advantages are worth several trillion yuans a year. It is a sad irony that such wealth of the people is used to beef up the revenues of the SOEs, making their accounts look much better than they should be.This book, with its rich empirical data and information, is an authoritative reference for researchers interested in SOEs. It is also a good read for students of social sciences and the public to learn more about SOEs.

Author : Harvard Business Review
Publisher : Harvard Business Press
Page : 837 pages
File Size : 25,6 MB
Release : 2020-08-04
Category : Business & Economics
ISBN : 1633699307

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If you aren't working with a strategy, you're wasting your time. Strategy isn't just a set of plans handed down from the C-suite. To grow as a leader, you need to understand your company's strategy and align your thinking, projects, and team with organizational goals and vision. Master these abilities with the HBR Guides to Building Your Strategic Skills Collection. This three-book set, which includes the HBR Guide to Thinking Strategically, the HBR Guide to Managing Strategic Initiatives, and the HBR Guide to Setting Your Strategy, will help you change the way you think about your work, manage your most important priorities, and craft a strategy for long-term growth. You'll learn how to: Understand what strategy is--and what it isn't Define a clear strategy, whether you're in a start-up or in an established business Manage a portfolio of strategic projects Embed strategic thinking into your daily tasks and decision making Align your team around key objectives Let go of work that doesn’t add value Communicate strategy throughout your organization Arm yourself with the advice you need to succeed on the job, with the most trusted brand in business. Packed with how-to essentials from leading experts, the HBR Guides provide smart answers to your most pressing work challenges.

Author : Ross Garnaut
Publisher : ANU E Press
Page : 500 pages
File Size : 33,45 MB
Release : 2012-12-01
Category : Political Science
ISBN : 192214455X

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Twenty-five years of reform have transformed China from a centrally planned and closed system to a predominantly market-driven and open economy. As a consequence, China is emerging as the new powerhouse for the world economy. China: new engine for world growth discusses the impact and significance of this transformation. It points out risks to the growth process and unfinished tasks of reform. It presents conclusions from recent research on growth, trade and investment, the financial sector, income and regional disparities, industrial location and private sector development.

Author : Rich Marino
Publisher : Routledge
Page : 204 pages
File Size : 38,16 MB
Release : 2018-08-06
Category : Business & Economics
ISBN : 1351039806

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There’s no question, compared to the advanced economies China’s economic growth rates have been spectacular, but in most instances the economic analysts tend to forget that a large part of China’s growth has been dictated by government industrial subsidies. How did China go from a bit player overnight to the largest exporter in the world in capital-intensive industries? This book shows that government subsidies play a big part in China’s success. Government subsidies include those to basic industries: energy (coal, electricity, natural gas and heavy oil), steel, glass, paper, auto parts, solar and more. A lot has been written about China’s trade practices with the West, but none of this work addresses the real unsustainable dilemma. Much of the current literature discusses the problems but doesn’t explain the root cause of China’s lopsided trade practices with the West or explain in detail how China finances its government subsidies, with nothing written that explains that China’s subsidized exports to the United States and European Union are basically self-funded by its enormous trade surplus with the West. A trade surplus represents a net inflow of domestic currency from foreign markets and is the opposite of a trade deficit, which would represent a net outflow. Moreover, this is the only book that describes China’s current trade practices with the West as a zero sum game at the expense of the West. This book provides two solutions to this endless quagmire: an increase in Western exports to China so that China and the West have more of an equal trade balance, or a very steep reduction of China’s exports to the West.

Author : Yi Wen
Publisher : World Scientific
Page : 336 pages
File Size : 16,28 MB
Release : 2016-05-13
Category : Business & Economics
ISBN : 9814733741

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The rise of China is no doubt one of the most important events in world economic history since the Industrial Revolution. Mainstream economics, especially the institutional theory of economic development based on a dichotomy of extractive vs. inclusive political institutions, is highly inadequate in explaining China's rise. This book argues that only a radical reinterpretation of the history of the Industrial Revolution and the rise of the West (as incorrectly portrayed by the institutional theory) can fully explain China's growth miracle and why the determined rise of China is unstoppable despite its current 'backward' financial system and political institutions. Conversely, China's spectacular and rapid transformation from an impoverished agrarian society to a formidable industrial superpower sheds considerable light on the fundamental shortcomings of the institutional theory and mainstream 'blackboard' economic models, and provides more-accurate reevaluations of historical episodes such as Africa's enduring poverty trap despite radical political and economic reforms, Latin America's lost decades and frequent debt crises, 19th century Europe's great escape from the Malthusian trap, and the Industrial Revolution itself.

Author : Chi-Yuan Tsai
Publisher :
Page : pages
File Size : 38,47 MB
Release : 2018
Category :
ISBN :

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This dissertation focuses on quantifying the economic effects of the subsidies of China in year 2006 to the world by using the Chinese industry survey data from National Bureau of Statistics of China. In Chapter 1, I build a two-country, one-sector, Melitz-type model based on Cho et al. (2018) with financial frictions as an initial investigation of welfare impacts from subsidies. Parallel to the literature on misallocation, China’s subsidies reallocate production toward the subsidized firms and away from non-subsidized firms. The combined effect leads to a welfare loss to China, compared with the case with no subsidies. However, the one-sector model abstracts from the distinctive characteristics of sectors that are a major reason for sector-targeted policies in the real world. Hence, in Chapters 2 and 3 a multi-sector model is used, where the degree of monopoly distortion differs across sectors so that subsidies can actually bring about a welfare gain by reallocating production across sectors. In Chapter 2, I build a two-country two-sector model a la Ossa (2016), which allows examination of the profit-shifting effect of subsidy policies. The different levels of distortion across sectors bring a rationale to subsidize production in the most distorted sector. I prove that in this illustrative model, the production subsidies always bring a welfare gain at the free trade equilibrium in the symmetric cases with and without an input-output linkage. The result becomes more ambiguous when two countries are asymmetric in the number of firms. For the country with a relatively large number of firms, if the trade cost is relatively small, a production tax, instead, enhances the welfare, mainly due to the terms of trade effect. I then extend this model to a multi-sector framework to calculate the model-implied optimal industrial policies of China and the welfare effect brought by China switching from the observed subsidy policy to the optimal policies. In the last chapter, different from Chapter 2, I focus on the welfare effect that is brought by the observed subsidy policy, compared with the situation with no subsidies. I first empirically measure the subsidy effect on a firm's unit prices and export behavior. Based on these empirical results, a change in the CES price index for each sector-destination from the observed subsidy level to the zero-subsidy level is established by using the NBS data. I then use these changes in the price indexes to quantify the welfare effect by using a multi-sector multi-country model, further extending the model in Chapter 2. Overall, in this more realistic framework, I find that the observed subsidies in 2006 increase China’s welfare by 2.02 percent at the expense of a welfare loss of other countries between 0.01 percent to 0.22 percent.