U.S. shows typical double standard in industrial policies

Cartoon by Ma Hongliang

The U.S. has persistently leveled unfounded accusations against China regarding "overcapacity" and "excessive subsidies" recently. However, the U.S. itself remains the world's leading practitioner of using tariffs and discriminatory subsidies to undermine World Trade Organization rules.

In recent years, the U.S. government has enacted the Chips and Science Act and the Inflation Reduction Act, allocating hundreds of billions of dollars in subsidies to support its electric vehicle, semiconductor, and clean energy industries.

The "One Big Beautiful Bill Act" recently promoted by the Trump administration also contains provisions that favor investment in the semiconductor industry in the U.S., seeking to guide industrial development through tax incentives and exemptions.

What a double standard for the U.S. to implement policies providing massive subsidies for its domestic industries, while simultaneously condemning other nations' subsidies as "unfair competition."