Industrial policy

The promotion of what a government considers to be strategic industries, often using an “infant industry” justification (see article). The disruption of supply chains during and after the covid-19 pandemic, concerns about the rise of Chinese economic power, and the Russian invasion of Ukraine have given industrial policy a new lease of life in the West. The widespread adoption of subsidies, tariffs and other measures to promote favoured industries raises the danger of renewed protectionism (see article).