The US Senate took a leaf out of China’s industrial policy playbook this week by passing USICA, a bill that earmarks $190bn in federal funding for strategic sectors and bears striking similarities with Beijing’s controversial Made in China 2025 plan. But despite some overlap, China’s industrial policies clearly remain far broader in scope and run a much greater risk of hindering rather than helping productivity growth.
Another burgeoning area of US-China competition is vaccine diplomacy. Here China has the clear lead, at least in terms of the quantity of vaccine exports. And the ongoing surge in domestic production and vaccination rates means that China could soon flood the world with doses on a far larger scale than other countries, including the US.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services