How Much Does China Subsidize Its Economy?
Exporting your way out of a recession is fine and good — it’s basically how Germany and South Korea shrugged off the Great Recession in the early 2010s.3 But China’s export boom is heavily subsidized, both with explicit government subsidies, and — more importantly — with ultra-cheap abundant bank loans. Subsidies are distortionary — they mean that... See more
Noah Smith • The Pettis Paradigm and the Second China Shock
Arthur Kroeber is a leading researcher on Chinese tech and macro, and author of "China's Economy: What Everyone Needs to Know." It's the most useful, detailed resource I've found of how China actually works.
We discuss how China achieved high-tech manufacturing dominance, and where they'll go from... See more
Dwarkesh Patelx.comAccording to a March 2024 action plan, the Ministry of Commerce, together with other Chinese government agencies, has offered subsidies to consumers who trade in old automobiles, home appliances, and fixtures for new models. On paper, the plan loosely resembles the “cash for clunkers” program that Washington introduced during the 2008 recession to
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