Reviews, Endorsements, Use by Industry, and Awards for Subsidies to Chinese Industry:  State Capitalism, Business Strategy and Trade Policy

REVIEWS

From the Economist (April 27, 2013), print edition, PDF here: 

"A provocative new book by Usha and George Haley, of West Virginia University and the University of New Haven respectively, points to another reason for China’s industrial dominance: subsidies."

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From the Pittsburgh Tribune-Review (June 16, 2013), PDF here:

"Here’s an in-depth look at one nation’s policy that has shaped global markets in four key capital-intensive industries... [The] book — dense with data, charts, graphs, chapter endnotes, appendix, bibliography and index — should be valuable to fellow academics, business people, politicians, diplomats and general readers."

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From strategy+business (July 24, 2013), PDF here:

"Subsidies to Chinese Industry isn’t an easy read: It’s an economic study and an academic treatise. But the industry research on which it is based, the issues it explores, and the conclusions it suggests are important. And, as the letters reproduced in the book’s appendices demonstrate, the Haleys’ findings are already being used to influence trade policy in the United States."

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From Carta Capital (July 25, 2013), in Portuguese, PDF here:

"Subsidies to Chinese Industry: State Capitalism, Business Strategy and Trade Policy" by Usha Haley and George Haley, deals with relations between companies and government policies. [It] resorts to an exhaustive empirical investigation without appealing to the blah-blah-blah ideological, often hypocritical, false opposition between states and markets in contemporary capitalism."

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From The Breakthrough Institute (November 24, 2013), PDF here:

“"What happens when a nation openly rejects Ricardo, desires absolute, not comparative, advantage, and employs massive state subsidies to attain that end, is the subject of Usha and George Haley’s comprehensive and groundbreaking book Subsidies to Chinese Industry: State Capitalism, Business Strategy, and Trade Policy…Haley and Haley offer an important insight: Chinese policymakers view firms’ bottom lines differently than do Westerners…”

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ENDORSEMENTS

From Gordon Brinser, President, SolarWorld Industries America Inc., Hillsboro, Ore:

“This richly researched book provides a much-needed foundation for grasping the serious and growing threat posed by China’s massive subsidization of its export-intensive strategic industries, which is harming industrial growth in the West.  Upending conventional wisdom, the book shows that China’s success does not stem from cost advantages as much as from subsidies calibrated for world-market dominance. Cutting-edge manufacturers and workers in the United States and Europe are paying a heavy toll.  As an executive of the largest solar-technology manufacturer in the Americas, which concluded one of the biggest trade cases ever brought against China, I can attest that traditional trade law and policy approaches, on their own, may not be enough to combat China’s state-engineered export juggernaut.  In light of the massive scale of subsidies supporting Chinese export manufacturers, China’s growing reliance on state-owned enterprises, its disregard for intellectual property protections and its lack of transparency, Usha and George Haley have provided important recommendations to ensure fair and robust competition across the oceans as well as a bright economic future for our peoples.” 

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From Marshall W. Meyer, Tsai Wan-Tsai Professor, The Wharton School, University of Pennsylvania

“Subsidies to Chinese Industry is a treasure trove of data on Chinese subsidization of four key sectors—steel, glass, paper, and auto parts. It is must reading for anyone seeking to understand China’s low-cost advantage and, crucially, whether this advantage is likely to remain.”

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From Ingo Walter, Seymour Milstein Professor of Finance, Corporate Governance and Ethics, Stern School of Business, New York University

"A definitive and fascinating study of China's explosion onto the global markets for manufactured goods on the back of a single resource and the unintended consequences in capital allocation that will take years to return to alignment with basic principles of comparative advantage. The role of China's curious blend of market-driven economics and direct state involvement is creatively dissected here to provide valuable insights into what comes next."

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USE BY INDUSTRY

From J. P. Morgan, Eye on the Market, Special Edition, The Agony and the Ecstasy, Appendix 1, On Chinese Subsidies (p.44) "in our view, the China case has no equal in terms of scope, breadth and impact" (written by Michael Cembalest, Chairman of Market and Investment Strategy at J.P. Morgan Asset Management).

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AWARDS

From The ITIF Summer Reading List 2014 (June 9, 2014) of the books that "do the best job of informing the innovation and competitiveness policy debates", PDF here:

“"This book is an essential read for American business leaders and trade policymakers. The Haleys argue that a vast system of subsidies to Chinese industries plays a more important role in their mercantilist policy than currency manipulation. This strategy largely results from a particular view of success: that technology acquisition provides a key goal in Chinese business operations, even at the expense of profits. But another possible explanation is China’s “shift strategy,” where growth is believed to come by shifting from low-productivity industries to high-productivity ones. Why does it matter? Chinese mercantilism has not only cost the United States a significant share of manufacturing job loss, but also has distorted the global location of and nature of production systems...”

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Harvard Kennedy School's Innovation Book of the Week (May 30, 2013)

From Calestous Juma, Professor of the Practice of International Development & Director, Science, Technology, and Globalization Project, Harvard Kennedy School

"This book is a highly instructive analysis of the role of subsidies in China's innovation system and global competitiveness."