The clearest example of the global impact of Chinese industrial policy practices? High speed rail. Has it all. Technology transfer for market access. "Buy China" preferences that favor local over foreign firms. Digestion of foreign technology. And now subsidized exports.
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But it doesn't directly involve any US firms (US isn't a HSR technology pioneer) so it doesn't get the coverage it otherwise might in the US. But if you read French, do check out this article (h/t
@IMateosylago)https://www.lejdd.fr/international/asie/le-tgv-chinois-nouvelle-reference-mondiale-3736136 …3 replies 7 retweets 15 likesShow this thread -
China's new trains are "Cent pour cent made in China" The large foreign firms in rail: "Tous ont accepté de transférer leurs technologies et de former des ingénieurs chinois, en échange d'un maigre accès au marché chinois."pic.twitter.com/M42vnLqyud
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Replying to @danwwang @Brad_Setser
Unfortunately, we cannot see the parallel universe where China did not require JVs. Perhaps that universe's cars would be much worse than what China has today. I've read and seen myself that Chinese brand and Chinese made cars like Haval are getting better every day.
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Replying to @danwwang
auto jvs have worked out ok for many of the foreign partners. other jvs not so much. and the "buy china" policies (make it in China with a jV partner) mean that China's imports of high end manufactures are kind of low. Should imply less trade over time
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Replying to @Brad_Setser @danwwang
wind = another sector with lots of poor outcomes for foreign players ... all of whom had some form of local presence. think some jvs early on in solar too. not just HSR.
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Replying to @Brad_Setser @danwwang
Every factory in China that we think of as low-end manufacturing of random crap, from clothing to staplers to injection molding grew out of a foreign business setting up shop in the country. Germans, Japanese, HKers, Taiwanese, etc. taught China how to make this stuff.
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Now it's not made in their home countries. I don't have an opinion as to whether or not that's a good thing, but I am quite confident that the car industry, when it comes to tech transfer is the exception, not the rule.
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