Subsidies and the China Price

  • Reference: HBS-F0806C-E

  • Number of pages: 4

  • Geographic Setting: China

  • Publication Date: Jun 8, 2001

  • Source: HBSP (USA)

  • Type of Document: Article

  • Industry Setting: Iron & steel

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Description

New research suggests that Chinese companies' price advantage comes not from low-cost labor but from massive government subsidies. That finding has major implications for foreign firms that compete with, or source from, those companies.

Keywords

Energy Prices Subsidies