responding to @escobar but forgot to quote the post.
the article you linked is really interesting and I will read later. quick response though. industrial policy is a market distorting practice. and there are IMO broadly two ways to distort the market: policies to gain access or deny access of market, tech, product, labor, etc. The article correctly assume that China can climb the tech and value chain thru its own competitiveness in the market, but only in none-strategic domains. but we all know F-16s or Intel chips will never be made in China, even if these companies can lower the cost by moving productions to China and China has a perfect market economy. In areas with anti-access policy from the west, China has no choice but enact policies to gain access.
the article you linked is really interesting and I will read later. quick response though. industrial policy is a market distorting practice. and there are IMO broadly two ways to distort the market: policies to gain access or deny access of market, tech, product, labor, etc. The article correctly assume that China can climb the tech and value chain thru its own competitiveness in the market, but only in none-strategic domains. but we all know F-16s or Intel chips will never be made in China, even if these companies can lower the cost by moving productions to China and China has a perfect market economy. In areas with anti-access policy from the west, China has no choice but enact policies to gain access.