There are good, bad industrial policies

Economy | Ed Zhang

For a long time, many in China have talked about how the country's economy is in transition, but the definition of that depends on whom you talk to.

Some said China's development is achieved partly by getting statistics to do the right thing and partly by policies that help whichever industries the government happens to like. Those who advance this idea differ on the relative proportions of each of these ingredients. Some say the split is 50-50 and others put it at 40-60 or 30-70. Whatever the proportions may be, the view is simplistic because it takes no account of entrepreneurship and competition.