Balancing International Trade Policies

Countries are facing the decision to either continue nonstop exports or implement policies to restrict domestic production and enhance domestic demand. While some countries like the U.S. are providing subsidies to companies like TSMC to compete with China, these efforts are small compared to China's massive investments in its industry. The dynamic of industrial policies is influenced by responses to other countries' actions, as seen in the case of U.S.-China trade relations and the potential impact of Japan's Nipon Steel's bid for U.S. Steel.