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Industrial Policy and the Great Power Competition
Lei Shaohua (雷少华)*
School of International Studies (SIS), Peking University, Beijing, China
Abstract:Since the end of the Cold War, major powers have avoided direct military confrontation, wary of the devastating consequences of nuclear warfare. Yet the arms race and regional conflicts remain important forms of power competition. Nonetheless, in the era of globalization, rapid advancements in new technologies and industries have eclipsed the utility of geopolitical maneuvers and military competition. In today’s world, the great power competition goes beyond the arms race and GDP aggregates. What matters more is the race to innovate and apply new technologies through a complete range of industrial sectors. In a world where technology has a controlling influence, industrial security has become the linchpin of national security. As globalization reshapes the world’s industrial landscape, a country’s economic influence, military might and national security depend increasingly on its industrial structure. National security is contingent upon industrial strength. In the era of globalization, industrial policy, cutting-edge technologies and market size are dominant factors influencing a country’s competitive position. The essence of the great power competition are industrial policies that fully unlock a country’s industrial potential and implementation of the policies.
Keywords:globalization, geopolitics, industrial policy, great power competition, late mover advantage
JEL Classification Codes: F02, L16
DOI: 10.19602/j.chinaeconomist.2020.09.05
