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Industrial Policy

All articles tagged with #industrial policy

Europe’s Buy European plan hits complexity and political fault lines
business9 days ago

Europe’s Buy European plan hits complexity and political fault lines

Europe's upcoming Buy European policy aims to steer public funding and procurement toward EU-made goods in strategic sectors as part of the Commission's One Europe, One Market plan for 2027. While defence is broadly supported to boost strategic autonomy, experts warn the policy risks becoming protectionist, raising costs and dampening innovation if not carefully designed. Deep divisions among 27 member states over strict local-content rules versus flexible, Europe-wide rules underscore potential costs for downstream industries and fragile supply chains. A mid-March proposal is expected with sector-specific thresholds and trusted-partner carve-outs, but many technical details remain unresolved and the policy could invite retaliation from trading partners if not carefully calibrated.

via Euronews.com|
#business#buy-european#eu
China’s involution could reshape its AI and robotics ambitions
economy19 days ago

China’s involution could reshape its AI and robotics ambitions

FT Alphaville explains China’s “involution”—fierce domestic price competition backed by local subsidies and procurement rules—that drives prices lower and keeps unprofitable firms afloat, with political incentives to preserve jobs and GDP. The pattern has already hit sectors like chips, EVs, and batteries, and now AI startups are flooding the scene to access government funding. Looking ahead, there are warnings of overcapacity in strategic areas such as humanoid robotics and satellites. The piece questions whether the Chinese state can unwind involution and what the West should do as China continues to export cheap goods and potentially shape the future of AI and robotics.

via Financial Times|
#artificial-intelligence#china-economy#economy
The Manufacturing Myth: Why 'Make It Great Again' Falls Short
economy20 days ago

The Manufacturing Myth: Why 'Make It Great Again' Falls Short

The piece argues that the nostalgia for reviving U.S. manufacturing through “Make America Great Again” is politically appealing but economically ineffective: manufacturing employs less than 8% of jobs and has not rebounded to pre-COVID output despite large policy spending; tariffs raise input costs since most imports are components used by domestic firms, diminishing competitiveness; the economy has shifted toward services, with manufacturing productivity growth slowing, and only a few strategic sectors merit targeted support rather than broad protectionist policies that harm consumers and fail to deliver durable jobs.

via The Guardian|
#economy#industrial-policy#manufacturing
Draghi calls for a genuine EU federation to stave off deindustrialisation
europepolitics1 month ago

Draghi calls for a genuine EU federation to stave off deindustrialisation

Former Italian PM Mario Draghi argues in a Leuven University speech that the EU must move from a loose confederation to a genuine federation to prevent subordination, division and deindustrialisation as the US and China reshape global order. He promotes a pragmatic federalism where member states opt in but Europe acts cohesively on trade, competition and monetary policy, highlighting the euro as a success and warning that a divided bloc risks losing its values and strategic influence.

via Euronews.com|
#deindustrialisation#draghi#eu-federation
Europe Faces Rising Risks from China's Growing Export Power
economy5 months ago

Europe Faces Rising Risks from China's Growing Export Power

Germany, which thrived during the first China Shock due to its specialized manufacturing exports and strategic trade relationships, now faces a potentially catastrophic second China Shock as China rapidly advances in high-tech manufacturing and becomes a direct competitor, threatening Germany's export-led economy and prompting calls for policy reforms and increased domestic demand.

via NPR|
#china-shock#economy#exports
Critics Warn Against Trump's U.S. Chip Industry Investments
politics6 months ago

Critics Warn Against Trump's U.S. Chip Industry Investments

The Trump administration's decision to acquire a 10% stake in Intel has faced criticism from conservatives and economists who argue it undermines free enterprise and risks politicizing business decisions, raising concerns about cronyism and the direction of U.S. industrial policy, despite the administration's goal to boost domestic chip production and technological competitiveness.

via CBS News|
#economic-criticism#government-stake#industrial-policy
"Revitalizing Britain's Economy with Stronger Government Intervention"
business1 year ago

"Revitalizing Britain's Economy with Stronger Government Intervention"

The Labour Party, under Keir Starmer, is set to introduce a new economic agenda emphasizing a stronger government role to address Britain's economic challenges, including slow growth and low productivity. This approach, reminiscent of global trends, aims to revitalize the economy but is being closely watched due to past failures and the competitive nature of international government interventions.

via The New York Times|
#britain#business#economy
IMF Boosts China's Growth Forecast to 5% After Strong Q1
economy1 year ago

IMF Boosts China's Growth Forecast to 5% After Strong Q1

The International Monetary Fund has raised its forecasts for China's economic growth, predicting a 5% increase this year and 4.5% in 2025, driven by surging exports and factory investments. However, the IMF questions China's extensive support for export-focused industries and highlights significant challenges in the housing market, including overbuilding and unsold apartments.

via The New York Times|
#china#economic-growth#economy
"China's Bold Industrial Strategy: A Glimpse into the Future"
global-economy1 year ago

"China's Bold Industrial Strategy: A Glimpse into the Future"

China has surged ahead in global manufacturing, particularly in clean energy, by leveraging government and banking power, and fostering competition among private companies. The U.S. and Europe are now trying to catch up by investing heavily in domestic industries and blocking Chinese products, but China's decades of experience and infrastructure investments give it a significant advantage.

via The New York Times|
#china#clean-energy#global-competition
"Yellen Urges China Policy Shift and Touts More Stable US-China Relationship"
international-relations1 year ago

"Yellen Urges China Policy Shift and Touts More Stable US-China Relationship"

US Treasury Secretary Janet Yellen emphasized the need for China to shift its industrial and economic policies during her recent trip to China, focusing on issues such as industrial overcapacity and boosting domestic demand. Yellen also discussed national security concerns and economic cooperation with top Chinese officials, aiming to maintain open communication and address differences between the two countries.

via CNBC|
#economic-discussions#industrial-policy#international-relations
Yellen Advocates for Fair Trade and Diplomacy in China Relations
business1 year ago

Yellen Advocates for Fair Trade and Diplomacy in China Relations

Treasury Secretary Janet Yellen met with Vice Premier He Lifeng of China to urge the country to reduce its green energy exports, citing threats to the US electric vehicle and solar sectors. Yellen's push comes as the Biden administration subsidizes its own clean energy industries, posing a diplomatic test as it could inflame trade tensions between the two largest economies. Yellen warned that China's cheap green technology exports could disrupt global supply chains and advised China to focus on boosting domestic consumption instead.

via The New York Times|
#business#china#green-energy