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How should we view subsidy in economy after all

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Reference no: EM132060198

In the current world of economies, shall China be considered as a state capitalism country? In this way, China's national projects such as 'made in china 2025' shall give rise to the development of Chinese technologies in certain areas. Meanwhile, western's free capitalism could not compete with China's regime as companies from China are heavily subsidised and China has a huge market itself. Does this violate the principles of free trade? However, countries like US also give subsidy to companies and farmers, are their economies really 'free'? How should we view subsidy in economy after all?

Reference no: EM132060198

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