China’s interventionist SSPs
● Infrastructure projects that allowed for industrial specialisation.
● promoting their electric car industries through subsidies.
Research and development:
● 13 out of the top 50 science and technology clusters in the world are located in the country.
● Ranked 11th in the global innovation index.
● Second largest spender on R&D globally, investing $469 billion in 2022.
Investment in human capital:
Healthcare::
● Life expectancy has increased, while infant mortality rates declined.
● In 2021 China’s total healthcare spending was ¥7.2 trillion.
● Over 95% of the population is covered by basic health insurance schemes.
Education:
● In 2022, China’s government allocated ¥4.3 trillion (4% of GDP) to education.
● Between 2000 and 2020, government spending on education grew over 500%.
● Gross enrollment rates in primary and secondary education are close to 100%.
● China is the country with the largest tertiary education system globally.
● The number of universities in China doubled between 2000 and 2020.
Workforce skills and training: China has heavily invested in vocational training, with over 10,000
vocational schools in the country and increasing enrollment rates to address industry needs.
Investment in infrastructure.
● Belt and road technology dealt with excess capacity in certain sectors and pushed exporters.
○ Massive infrastructure project in 2013: aimed at boosting trade and connectivity
between China and countries in Asia.
○ Ports, rail networks, roads, airports, energy and telecommunications infrastructure,
industrial parks and special economic zones.
Industrial policies
● Special economic zones, massive cities for manufacturing along the eastern coast.
● Support for infant industries → electric car industry.
https://www.csis.org/blogs/trustee-china-hand/chinese-ev-dilemma-subsidized-yet-striking
○ Government spending in supporting the sector through industrial policy.
○ Exemption of the 10% sales tax.
○ Government funding for charging poles.
○ R&D programs for EV makers.
○ The industry received loans with interest rates of roughly 2%, half the weighted
average for all commercial and industrial loans.
○ Government subsidies.
Government’s engagement in the economy → China has gone from 10 million state owned businesses
to 200,000 in 20 years.
● Infrastructure projects that allowed for industrial specialisation.
● promoting their electric car industries through subsidies.
Research and development:
● 13 out of the top 50 science and technology clusters in the world are located in the country.
● Ranked 11th in the global innovation index.
● Second largest spender on R&D globally, investing $469 billion in 2022.
Investment in human capital:
Healthcare::
● Life expectancy has increased, while infant mortality rates declined.
● In 2021 China’s total healthcare spending was ¥7.2 trillion.
● Over 95% of the population is covered by basic health insurance schemes.
Education:
● In 2022, China’s government allocated ¥4.3 trillion (4% of GDP) to education.
● Between 2000 and 2020, government spending on education grew over 500%.
● Gross enrollment rates in primary and secondary education are close to 100%.
● China is the country with the largest tertiary education system globally.
● The number of universities in China doubled between 2000 and 2020.
Workforce skills and training: China has heavily invested in vocational training, with over 10,000
vocational schools in the country and increasing enrollment rates to address industry needs.
Investment in infrastructure.
● Belt and road technology dealt with excess capacity in certain sectors and pushed exporters.
○ Massive infrastructure project in 2013: aimed at boosting trade and connectivity
between China and countries in Asia.
○ Ports, rail networks, roads, airports, energy and telecommunications infrastructure,
industrial parks and special economic zones.
Industrial policies
● Special economic zones, massive cities for manufacturing along the eastern coast.
● Support for infant industries → electric car industry.
https://www.csis.org/blogs/trustee-china-hand/chinese-ev-dilemma-subsidized-yet-striking
○ Government spending in supporting the sector through industrial policy.
○ Exemption of the 10% sales tax.
○ Government funding for charging poles.
○ R&D programs for EV makers.
○ The industry received loans with interest rates of roughly 2%, half the weighted
average for all commercial and industrial loans.
○ Government subsidies.
Government’s engagement in the economy → China has gone from 10 million state owned businesses
to 200,000 in 20 years.
