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Policy Brief

Rethinking industrial policy

Industrial policy has a bad name: ‘picking winners’ and thus distorting competition, while exposing government to capture by vested interests. But there are reasons for a rethink. First, climate change: without government intervention to jump-start massive private investment in clean technologies, governments, by default, encourage investment in dirtier technologies. Second, a new post-crisis realism: laissez-faire […]

By: , and Date: June 16, 2011 Topic: European Macroeconomics & Governance

Industrial policy has a bad name: ‘picking winners’ and thus distorting competition, while exposing government to capture by vested interests. But there are reasons for a rethink. First, climate change: without government intervention to jump-start massive private investment in clean technologies, governments, by default, encourage investment in dirtier technologies. Second, a new post-crisis realism: laissez-faire complacency by many governments has led to mis-investment in the non-tradable sector at the expense of growth-rich tradables. Third, China – and some other emerging economies – are big deployers of growth-enhancing sectoral policies. The challenge for Europe is how it can design and govern sectoral policies that are competition-friendly and thus growth-enhancing.

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Blog Post

China has a grand carbon neutrality target but where is the plan?

China’s new long-term targets, to reach peak emissions before 2030 and achieve carbon neutrality by 2060, are yet to be matched with a consistent short-term action plan.

By: Alicia García-Herrero and Simone Tagliapietra Topic: Energy & Climate Date: April 14, 2021
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Podcast

Podcast

A digital yuan?

China is moving towards a digital currency but there is a long way to go.

By: The Sound of Economics Topic: Global Economics & Governance Date: April 14, 2021
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Opinion

The EU-China investment deal may be anachronic in a bifurcating world

Ultimately, only time will tell if this landmark trade agreement will be productive and counter the potential bifurcation of international value chains.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: April 6, 2021
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Opinion

中國兩會的主要目標在於長遠經濟規劃

2021年相對較低的經濟目標實際上有助於保持2021和2022年增長的相對穩定。

By: Alicia García-Herrero Topic: Global Economics & Governance Date: March 12, 2021
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Opinion

Anchoring expectations as Two Sessions’ main objective

Interestingly, the growth target for 2021 is pretty humble: over 6 percent for 2021, while most forecasts hover between 7 and 10 percent.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: March 10, 2021
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Podcast

Podcast

Will China fall into the middle/high income trap?

The middle to high-income trap in East Asia and its China dilemma.

By: The Sound of Economics Topic: Global Economics & Governance Date: March 3, 2021
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Opinion

外國投資者可能會放緩在中國債券市場的步伐

總體而言,誘人的息差縮小和信貸風險的上升可能會削弱此前中國債券的優勢。儘管中國仍在推動債券市場多元化,但越來越多的中國企業被實施制裁對2021年來說並不是個好兆頭。

By: Alicia García-Herrero Topic: Global Economics & Governance Date: March 3, 2021
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Policy Contribution

China’s state-owned enterprises and competitive neutrality

The concept of competitive neutrality can be used to assess how far a market is from being a competitive environment. In China, competitive neutrality is lacking, with state-owned firms favoured in most sectors, even over Chinese private firms.

By: Alicia García-Herrero and Gary Ng Topic: Global Economics & Governance Date: February 23, 2021
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External Publication

China and the WTO: Why Multilateralism Still Matters

An examination of China’s participation in the World Trade Organization, the conflicts it has caused, and how WTO reforms could ease them.

By: Petros C. Mavroidis and André Sapir Topic: Global Economics & Governance Date: January 28, 2021
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Podcast

Podcast

A rushed deal or a rush to judgement?

The Comprehensive Agreement on Investment (CAI) is supposed to improve market access for European companies operating in China and to ensure a level playing field, as well as reciprocity. Does it fulfil such expectations?

By: The Sound of Economics Topic: Global Economics & Governance Date: January 27, 2021
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Opinion

中國企業受累貿戰和疫情,但仍優於全球同業

總體上,中國企業的表現半喜半憂:相對全球同業表現較好,但收入下降和槓桿率升高帶來的風險也不容忽視。

By: Alicia García-Herrero Topic: Global Economics & Governance Date: January 21, 2021
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Opinion

RCEP對亞洲影響積極,無阻價值鏈重組

總體而言,雖然RCEP成員之間在市場准入上實際提升幅度有限(例如中國和澳洲),但這一協定的意義在於讓世界意識到,亞洲仍然依賴中國市場,亞洲國家不能錯過中國放寬市場准入的機會,即使幅度有限。

By: Alicia García-Herrero Topic: Global Economics & Governance Date: January 21, 2021
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