China's Financial Incentive Strategy

Nov. 21, 2009
Americans pride themselves as the world's leading capitalists, but when it comes to attracting manufacturing investment, China may be well ahead of the game, according to experts at a news briefing on the latest U.S.-China Economic and Security Review ...

Americans pride themselves as the world's leading capitalists, but when it comes to attracting manufacturing investment, China may be well ahead of the game, according to experts at a news briefing on the latest U.S.-China Economic and Security Review Commission report.

Complaints by Chinese leaders that the United States is moving toward protectionism are "ironic" given Beijing's moves toward "even greater government control of their economy," according to Carolyn Bartholomew, the bipartisan commission's chair.

Bartholomew says China is employing a multi-faceted policy involving artificially low currency valuation, cheap labor and a variety of financial incentives to attract foreign business investment and promote exports. In particular, Bartholomew points out that China's industrial policy chooses particular industrial segments as "national champions" and "throws everything it has at supporting those industries and protecting them from foreign competition."

Bartholomew told reporters there are reports that China's next five-year plan will focus on promoting green technology. She says there is concern that the U.S. will lose its competitve edge on green technology "before we really even get going."

Bartholomew said Chinese incentives to companies are resulting not only in the loss of manufacturing jobs in the U.S., but also the movement of research and development to China. "Once you have lost R&D capability as well as manufacturing capability, you lose your innovation capability," she warns.

Popular Sponsored Recommendations

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Machine Learning and Predictive Analytics Guidebook for Engineers

Sept. 27, 2023
Leverage Domain Expertise to Drive Optimization – Without Needing a Data Scientist.

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!