"Indeed. I mean, industrial policy is a big part of it. China's new energy vehicle targets and plans go back to around 2009. So they predate Made in China 2025. How they do this is hard to quantify, but there are a lot of subsidies for buyers, for firms. There's state-backed credit, state-backed investment funds, government procurement, etc. But I think BYD is a good example. The EV sector clearly benefited from Chinese industrial policy, but the industrial policy also didn't pick winners, so to speak. BYD was the one that rose to the top, in part because consumers are ultimately the ones deciding, and now it is a globally competitive firm."
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