(Source: International Financial Forum IFF Ta Kung Pao Column 2025-02-14)

In 2024, the International Financial Forum (IFF) conducted a special survey on the current situation of w88 and released the "Global Finance and Development Report". We see that protectionist policies have affected the flow of w88 to a great extent. Geopolitical factors are also one of the many factors affecting w88, such as whether Sino-US w88 relations will continue to deteriorate. Our academic committee is also doing further research and analysis, such as the impact of increasing tariffs by 10%, 25%, 60%, or even 100% in some areas. We are also further waiting and analyzing. We must face this coming storm head-on and prepare for it. Over the past three years, the world has changed dramatically, not least in terms of geopolitical tensions. Our report points out that global foreign direct investment (FDI) flows to emerging economies fell by 7%, which is much smaller than the decline in flows to advanced economies. At the same time, global growth remains sluggish, with a forecast growth rate of 3.2% in 2024, which is considered moderate. Therefore, we must face up to these challenges.

There are also some countries that are re-examining their industrial policies and placing more emphasis on security factors. This includes rising subsidies and other protectionist measures to ensure the country can retain critical manufacturing capabilities. This trend has led to increasingly localized manufacturing supply chains, helping the countries involved to reduce their dependence on other countries. This renaissance of industrial policy is a double-edged sword. On the one hand, it can increase the self-sufficiency and economic resilience of the countries concerned, but it can also further deepen geopolitical fragmentation and tensions among major economies. Every country is emphasizing the importance of the security of its own supply chain. This resurgence of protectionism has made global w88 more fragmented, making it difficult for global w88 to promote sustained and coordinated economic growth. Regardless of whether there will be another w88 war between major economies - we have not yet decided, but we are bound to witness further changes or even reorganization of the global w88 pattern. Therefore, we need to further cooperate to jointly promote the stable recovery of the global economy, otherwise everyone will be a victim.

In the past few decades, traditional economics has generally believed that measures such as tariffs, import substitution, and subsidies should not be used to select winners. This seems to have become consensus and common sense. However, industrial policy is now making a comeback, especially in some advanced economies. Is there a case for good industrial policy? Meanwhile, how can emerging economies and low-income countries win the new subsidy war?

I hope to use a case to help clarify misunderstandings about industrial policy, especially about China’s industrial policy. Many people believe that the Chinese government is unfair to other countries by using these industrial policies to make companies more powerful. However, once you truly understand the situation in China, you will find that this is not the case. We also have a very good competition policy. Without competition, companies cannot survive. Therefore, the purpose of industrial policy is to guide companies to do better and encourage innovation. For example, in China's solar cell industry, the cost of solar power generation used to be 10 yuan/watt, but now it has dropped to 10 cents, or 1 dime. The cost has dropped by more than 90%, or even to 99%. China's transformation has undergone incredible changes with the support of industrial policy, which actually promotes competition.

You may like Chinese food, but in fact we have no special industrial policy for Chinese food. There is only competition. Any restaurant that does not innovate its dishes will have to close down. Without competition, industries cannot survive. Therefore, in China, we combine industrial policy with encouraging innovation, and at the same time eliminate backward production capacity. We do not blindly support all enterprises. This is the way to promote competition.

We promote innovation and develop new generation technologies, encourage everyone to invest in research and development, and develop cutting-edge technologies to replace the elimination of backward production capacity. Our economy has benefited from this, and even the rise of China's electric vehicle industry has demonstrated international competitiveness.

Now that we are facing the challenge of geopolitical tensions, we must maintain the bottom line of national security and rely more on our own supply chain. Some technical bottlenecks are also becoming increasingly serious. Public-private partnerships can help. These are defensive measures aimed at ensuring economic security. Huawei, for example, has taken a series of stabilizing measures to create an ecosystem to encourage the introduction of more investment. I have just visited some high-tech companies in Guangdong, including those that receive venture capital and seed investment. Generally speaking, only 2% or less of startups that receive venture capital survive in the long term. However, for technology companies like Huawei and BYD that invest in them, the probability of their successful growth can be increased to 20%, which is 10 times higher than the market average. The ecosystem created by market-leading companies can improve the entire market environment, and coupled with the incentive measures taken by the government, it can cultivate the ecology of the entire economic transformation and innovation development. Therefore, we need to follow an innovation-led strategy and continue to work hard to make our technology more advanced, especially to encourage talents to give full play to their role.

In the 1920s and 1930s, tariffs were very high and w88 barriers were widespread, and the entire world paid a huge price for this. Today, history shows great parallels, and we are faced with an urgency to address this issue. On the one hand, we need to ensure the independence and resilience of each country's economic development; on the other hand, we must also maintain openness and continue to maintain the free w88 system. Currently, the global trading system is facing many challenges, and we hope to find a balance to deal with these challenges. We must further strengthen the multilateral trading system and establish unified standards. Currently, standards vary from country to country. In addition, we need to enhance the partnership between the public and private sectors, sign more regional free w88 agreements and make them truly effective to promote intra-regional w88 growth and thereby promote the development of global w88. At the same time, consensus was reached on industrial policy rules, especially regarding subsidies. Once a subsidy policy is implemented, consideration should be given to how to gradually reduce the subsidy and eventually exit it. There is a challenge as to whether subsidies are good industrial policy, but now is a critical time to get into the problem-solving phase.

This article was adapted from Zhao Zhongxiu, co-chairman of the Academic Committee of the International Finance Forum (IFF) and president of the w88 casino, for the "New Trends in Global w88 under Geopolitical Conflict" agenda of the 21st Global Annual Meeting of the International Finance Forum (IFF), and authorized this column to be published.

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