China’s Industrial Policy: A Mixed Bag of Instruments and Outcomes – Lessons for Europe

 

The perception of China’s industrial policy has gone through different waves. Once perceived as ineffective and inefficient, it is now generally considered successful based on how much China has moved up the ladder in different industries and technologies. The reality is much more mixed once the different aspects and industries of China’s industrial policy are taken into account. When it comes to following China’s industrial policy model, it is important to realize that China’s idiosyncratic economic system makes it difficult – and perhaps not even wise – to replicate