The Explosive Rise of Subsidies to Chinese Industry

Chinese mercantilism has cost the U.S. a significant share of manufacturing job loss and this loss has had ripple effects to other sectors as U.S. manufacturers and their workers cut their spending. These massive subsidies also distort the global location of and nature of production systems, resulting in production that is most efficiently done in another nation to be inefficiently done in China. Fundamentally the only real solution to this problem is for the world trading community to say enough is enough and put in place tougher policies that make it less beneficial and practical for China to continue along its current path.