Author: CEPR

Industrial policies are a key feature of many countries running persistent trade surpluses. This column develops a framework to examine how industrial policies shape global imbalances and asks whether countries should worry about trade deficits, in the context of the ‘Second China Shock’ affecting mostly innovation-intensive high-tech sectors. The findings suggest that countries negatively affected by global imbalances should include industrial and innovation policies as part of their policy toolkit.Read More

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SMIC, China’s largest chipmaker, has sent chipmaking tools to Iran’s military, two senior Trump administration officials said on Thursday, raising questions about Beijing’s ‌stance in the month-old U.S.-Israeli conflict with Iran. SMIC, which has been heavily sanctioned by the U.S. government ‌over alleged ties to the Chinese military, began sending the tools to Iran roughly a year ago and “we have no reason to believe that ​any of this has stopped,” one of the officials said. The official added that the collaboration “almost certainly included technical training on SMIC’s semiconductor technology.”Read More

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