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Subsidies to Chinese IndustryState Capitalism, Business Strategy, and Trade Policy$
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Usha C.V. Haley and George T. Haley

Print publication date: 2013

Print ISBN-13: 9780199773749

Published to Oxford Scholarship Online: May 2013

DOI: 10.1093/acprof:oso/9780199773749.001.0001

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Measuring subsidies to chinese industry

Measuring subsidies to chinese industry

(p.29) Chapter 2 Measuring subsidies to chinese industry
Subsidies to Chinese Industry

Usha C. V. Haley

George T. Haley

Oxford University Press

This chapter defines subsidies, variables, measurement and data problems and methodology for the four studies on Chinese subsidies: steel (2000–2007), glass (2004–2008), paper (2002–2009) and auto parts (2001–2011). In these capital-intensive and fragmented industries, China moved swiftly from net importer to largest exporter, with labor 2–7 percent of costs, and no economies of scale or scope. Connections are specified between Chinese policy, GATT and WTO trade regulation, and subsidies. Previous research is surveyed on major forms of subsidies to Chinese industry including a) free to low-cost loans, b) subsidies to energy (coal, electricity, natural gas, heavy oil), and c) subsidies to key inputs, land and technology. Calculations used data from companies, non-governmental organizations, government agencies, think tanks, industrial analysts and policy statements. For the first time, multifaceted data incorporated firm-level variables, not just Chinese governmental reports to measure subsidies. The price-gap approach to measure subsides is elaborated.

Keywords:   measuring Chinese subsidies, Chinese data, price-gap approach, Chinese subsidies to steel, Chinese subsidies to glass, Chinese subsidies to auto parts, Chinese subsidies to paper, Chinese loans, Chinese subsidies to energy, Chinese subsidies to technology

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