Re: State subsidies will allow Chinese firms to eat everyone's lunch
Japan almost put Intel out of business in the early '80's by dumping RAM on US markets. (Intel was originally a RAM company.) All that happened when Japan had a high standard of living. It was the subsidies, not a low standard of living, that allowed that to happen. The same is true of prior Chinese dumping - the government subsidies allowed them to sell for below their true (un-subsidized) COGS. The standard of living is irrelevant.