Despite the Biden Administration’s adoption of the EU’s ‘de-risking’ term, and admitting the infeasibility of truly decoupling, they are still trying to divide major parts of the world economy, including China from the EU. Along with export controls and investment reviews, their big initiative is the subsidies war in manufacturing that they have launched through the IRA and CHIPS Acts.
The evidence supports the idea that government spending on R&D, worker training, infrastructure, and expedited regulation of innovations is positive. Once politicians start handing out money to individual…
