Labor’s interventionist industry policy aims big. But how can Australia compete with the US and China?

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The Albanese government has shed little light on how billions of dollars will be divvied up. The treasurer’s ‘favourite economist’ might provide some clues

Edison Zhou, the head of local sales for solar giant Trina, was slightly taken aback when asked at a recent briefing in Sydney whether his firm might shift any of its panel manufacturing to Australia.

The size of the programs is gaining heft – including a $15bn National Reconstruction Fund, $4bn for critical minerals and $2bn for green hydrogen – with more likely in next month’s federal budget. We also ignore economics when it comes to, say, building nuclear submarines in Australia. National security concerns about China presumably trump market concerns.

 

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