I'll take a stab. How about something like not more than 50% greater than OECD average per industry? My point: It seems reasonable that some countries was to specialise in certain areas. For example: Taiwan and (East!) Germany chose to build-out their semiconductor industry starting in the 1980s. It has paid pretty good dividends with a healthy amount of industrial subsidies. I also think the OECD should be raising tariff rates to protect against ridiculous levels of Chinese subsidies.
Basically every "made in USA" consumer product has a DOD contract. The DOD is mandated by law to purchase from US companies, so there is a huge sector of small-to-medium businesses which only exist because there is a guaranteed order coming every quarter for uniforms or boots or other equipment that would likely be 1/3 the price if they were contract-manufactured in China or Vietnam.
Not saying this is uniformly bad, because without the law the number of businesses with the ability to manufacture this stuff would trend toward zero, but it is a form of subsidy.
US Arms exports bring in around $13 billion a year. The military industrial complex is a domestic jobs program that sells the vast majority of what it makes domestically. The US is clearly not spending a trillion dollars a year subsidizing defense in order to make their products more competitive in other markets.
If a country hands out enormous subsidies but yet isn't leading in anything, then maybe it's time to consider what structural reasons are causing these subsidies to be squandered and whose bottom lines are being padded.
Ever wondered why everything in the USA contains corn syrup? Because sugar is artificially expensive (roughly double the global price) due to import tariffs that protect US sugar cane farmers.
> Between 2005 and 2024, Chinese firms received on average three to eight times more subsidies than competitors in OECD economies.
https://www.oecd.org/en/blogs/2026/06/industrial-subsidies-h...
I can't read this seriously while being unable to buy any Chinese EVs here in the US.
You can't buy Chinese EVs in the US because China is overtly running a dumping campaign for them. It's an interesting story, read up on it!
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What’s the level of subsidy that’s ok?
I'll take a stab. How about something like not more than 50% greater than OECD average per industry? My point: It seems reasonable that some countries was to specialise in certain areas. For example: Taiwan and (East!) Germany chose to build-out their semiconductor industry starting in the 1980s. It has paid pretty good dividends with a healthy amount of industrial subsidies. I also think the OECD should be raising tariff rates to protect against ridiculous levels of Chinese subsidies.
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"my level" - $1 more is cheating
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Which industries are the US leading in because of subsidies?
Arms, weapons, fighter jets and so on. The US sounds a trillion $ a year subsidizing the military industrial complex.
The US chose their market (arms). The Chinese chose consumer goods. Go figure.
Basically every "made in USA" consumer product has a DOD contract. The DOD is mandated by law to purchase from US companies, so there is a huge sector of small-to-medium businesses which only exist because there is a guaranteed order coming every quarter for uniforms or boots or other equipment that would likely be 1/3 the price if they were contract-manufactured in China or Vietnam.
Not saying this is uniformly bad, because without the law the number of businesses with the ability to manufacture this stuff would trend toward zero, but it is a form of subsidy.
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US Arms exports bring in around $13 billion a year. The military industrial complex is a domestic jobs program that sells the vast majority of what it makes domestically. The US is clearly not spending a trillion dollars a year subsidizing defense in order to make their products more competitive in other markets.
https://www.theglobaleconomy.com/rankings/arms_exports/
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Sadly, consumer goods are the new arms (drones, batteries, etc)
Oil, natural gas, corn (for fuel), soybeans (for cattle feed)
If a country hands out enormous subsidies but yet isn't leading in anything, then maybe it's time to consider what structural reasons are causing these subsidies to be squandered and whose bottom lines are being padded.
What US industries get anywhere near Chinese level subsidies.
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Ever wondered why everything in the USA contains corn syrup? Because sugar is artificially expensive (roughly double the global price) due to import tariffs that protect US sugar cane farmers.
EVs, mobile phones, are two massive industries where Chinese competitors are not only way ahead, but also basically banned.