Board of Editors member, Prof. Usha Haley, spoke at the U.S.-China Economic and Security Review Commission Hearing on China's World Trade Compliance. In Part One, she addressed subsidies, their forms and complications. In Part Two, she covers how profitable and available those subsidies are and how profitable companies are that serve the China market.
Usha C. V. Haley, Ph.d.How pervasive are subsidies in China?
Our research has shown that despite recent deregulation efforts, state consumption through its SOEs dominates the Chinese economy. Figure 1 indicates difference in state domination of the Indian and Chinese economies.
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