All Things Policy

China’s Manufacturing Powerhouse

Aug 8, 2025
Kyle Chan, a postdoctoral researcher at Princeton with expertise in industrial policy and clean technology, joins in for a captivating discussion on China’s manufacturing might. He reveals how China's strategic policies have reshaped global supply chains amid trade tensions. The conversation dives into the role of state-owned enterprises, the shift from low-end production to core technologies, and the country’s significant impact on the clean energy transition. Listeners gain insights into what this means for India and the future of global manufacturing.
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INSIGHT

Industrial Policy Manages Externalities

  • Industrial policy addresses market externalities that classical economics often misses.
  • It helps manage system-level effects like supply chain disruptions beyond profitability concerns.
INSIGHT

China's Overcapacity Strategy

  • China's heavy subsidies and state interventions cause overcapacity issues globally.
  • This strategy yields global dominance but also triggers complaints and market distortions worldwide.
INSIGHT

Industrial Maximalism and Geopolitics

  • Manufacturing brings technological advancement and geopolitical leverage for China.
  • Other countries now adopt targeted industrial policies partly in response to China's rise.
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