Assessment of China's Subsidies to Strategic and Heavyweight Industries

摘要

This study examines China's government subsidies to industries known as absolute control and heavyweight industries. The absolute control industries are armaments, power generation and distribution, oil and petrochemicals, telecommunications, coal, civil aviation, and shipping. The Chinese government views these industries as being strategic and of vital importance to the proper function of Chinas safety and economic well being. Government control over these industries is to remain absolute, or close to it. The heavyweight industries are machinery, automobiles, information technology, construction, and iron & steel and non-ferrous metals. These industries are deemed important to the domestic economy. The Chinese government intends to maintain a high degree of control over these industries, but is more willing to tolerate private ownership.