China’s Industrial Planning Evolves, Stirring US Concerns

Today, 38% of multinationals say their China operations are being negatively affected by Beijing’s industrial policies, according to a membership survey by the US-China Business Council published in August, more than three times the proportion two years earlier. Political thinkers in Beijing are preparing their defense by dusting off “Entrepreneurial State,” a 2013 book by Italian economist Mariana Mazzucato. It argued US government-led innovation has been the key change agent for American private industry; for instance how GPS helped make Apple’s iPhone a truly smart device.