The Negative Effects of Chinese Subsidies on Innovation

I want to clarify how we should interpret some of your results. You're not claiming that these Chinese subsidies are no big deal and they're not imposing big costs on China's trading partners, he says. He asks if the component of Chinese industrial policy is not leading firms to be more productive, then is it something that we even need to worry about? And the problem, unfortunately, is that subsidies can distort trade. They can have significant negative effects both for China and for the world.