(Source: International Financial Forum IFF Ta Kung Pao Column 2025-02-14)

In 2024, the International Financial Forum (IFF) conducted a special investigation on the current situation of trade and released the Global Finance and Development Report. We see that protectionist policies have greatly affected the flow of trade. Geopolitical factors are also one of the many factors affecting trade, such as whether Sino-US trade relations will continue to deteriorate.

w88 mobileSome countries are also re-examining their industrial policies and emphasizing security factors. This includes rising subsidies and other protectionist measures to ensure that the state can retain critical manufacturing capacity.

In the past few decades, traditional economics generally believed that measures such as tariffs, import substitution and subsidies should not be adopted to select winners, which seems to have become consensus and common sense. However, industrial policies are now back, especially in some developed economies.

I hope to use a case to help clarify misunderstandings about industrial policies, especially about China's industrial policies. Many people believe that the Chinese government makes enterprises stronger through these industrial policies, thus causing unfairness to other countries.

You may like Chinese food, but in fact we do not have special industrial policies for Chinese food. We only have competition. Any restaurant that does not engage in dish innovation will have to be closed. Without competition, industries cannot survive.

We promote innovation and develop a new generation of technologies, encourage everyone to invest in R&D, and develop cutting-edge technologies to replace w88 slotand eliminate backward production capacity. Our economy has benefited from this, and even the rise of China's electric vehicle industry has shown international competitiveness.

Now we are facing the challenge of geopolitical tensions. We must maintain the bottom line of national security and rely more on our own supply chain. Some technical bottlenecks are becoming increasingly serious, and the relationship between public-private partnerships can help, which are some defensive measures aimed at ensuring economic security.

In the 1920s and 1930s, tariffs were high and trade barriers were widespread, and the whole world paid a huge price for this. Today, history shows great similarity and we face the urgency to solve this problem.

This article was rewritten by Zhao Zhongxiu, co-chair of the Academic Committee of the International Finance Forum (IFF) and president of the University of International Business and Economics and Trade, for the agenda speech of the 21st Global Annual Meeting of the International Finance Forum (IFF) and authorize this column to be published.

attached original link:https://mp.weixin.qq.com/mp/wappoc_appmsgcaptcha?poc_token=HIRIsGejQ07EbpGLuAmudssGniSODet2vrbadnyD&target_url=https%3A%2F%2Fmp.weixin.qq.com%2Fs%2FH-zD0-aaLjXCqVvlRnS-gg