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Industrial Policy

All articles tagged with #industrial policy

Time running out to counter China’s rising grip on global supply chains
world17 days ago

Time running out to counter China’s rising grip on global supply chains

The US Chamber of Commerce warns governments have a finite window to push back against China’s state-led industrial policies, which deepen dependence on Chinese supply chains and boost Beijing’s global influence. A Rhodium Group report for the chamber highlights China’s shift from low-cost manufacturing to high-tech production (including robotics) and a broader industrial-policy push, signaling a potential reordering of global trade that policymakers must address soon to protect advanced economies’ competitive edge.

FCC Foreign-Made Router Ban Could Signal Broader Industrial Policy Push
technology1 month ago

FCC Foreign-Made Router Ban Could Signal Broader Industrial Policy Push

With the FCC excluding foreign-made routers and drones from new equipment authorizations, experts say the policy could extend to more consumer electronics (phones, laptops) and amount to a broader industrial policy to reshape US manufacturing. Critics warn it may raise prices, chill innovation, and take years to rebuild domestic production, even as the White House cites national security concerns. The FCC has granted limited exemptions (Netgear, Adtran) and set an 18-month timeline for new router models, plus a 2027 deadline to allow updates on currently approved foreign-made devices.

Germany's Industrial Ramstein: a bold reboot for Ukraine's factories
world1 month ago

Germany's Industrial Ramstein: a bold reboot for Ukraine's factories

Germany launches a new Industrial Ramstein framework to reboot Ukraine’s war-damaged industry, pledging €233 million (including an initial €30 million from KfW) to finance modernization and integration into European value chains through grants, loans, and guarantees, extending support beyond rebuilding to creating new production and upgrading facilities in collaboration with European partners.

Europe’s Buy European plan hits complexity and political fault lines
business3 months 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.

China’s involution could reshape its AI and robotics ambitions
economy3 months 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.

The Manufacturing Myth: Why 'Make It Great Again' Falls Short
economy3 months 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.

Draghi calls for a genuine EU federation to stave off deindustrialisation
europepolitics3 months 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.

Europe Faces Rising Risks from China's Growing Export Power
economy8 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.

Critics Warn Against Trump's U.S. Chip Industry Investments
politics9 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.

"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.

IMF Boosts China's Growth Forecast to 5% After Strong Q1
economy2 years 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.