> China cannot subsidize industries out of thin air
Correct. Their industrial subsidies come at the expense of China's domestic spending ability. Many pundits, including the one I linked, believe that China must allow increased domestic demand but this is politically unfavorable in China due to the entrenched interests and beliefs in the necessity of a strong industrial base.
Correct. Their industrial subsidies come at the expense of China's domestic spending ability. Many pundits, including the one I linked, believe that China must allow increased domestic demand but this is politically unfavorable in China due to the entrenched interests and beliefs in the necessity of a strong industrial base.