GOVERNMENT SUPPORT AS AN ENTERPRISES COMPETITIVENESS INCREASING FACTOR: THE EXPERIENCE OF CHINA FOR RUSSIA

Abstract

Introduction. This article presents a systematic review of academic literature and characterizes the instruments of state support for industrial sectors in China. The aim of the article is to identify the instruments of China's current industrial policy based on the literature review and to analyze the possibilities of applying them in Russia’s industrial policy to ensure technological sovereignty. The objectives include analyzing relevant literature, identifying significant features of China’s industrial policy, and assessing the possibilities and limitations of applying Chinese experience in Russia.

Materials and Methods. The research methodology includes comparative analysis and synthesis of scientific studies according to international PRISMA guidelines. The analysis compares methodologies and results of researches of state support tools in China based on extensive literature in Russian, English, and Chinese. Particular attention is paid to comparing the positions formulated by Aghion et al. and Bickenbach et al., both regarding the analysis of instruments applied in China and the international context of their use. The information base consists of academic publications on the research topic.

Results. Application of Chinese state support instruments in Russia is possible but requires adaptation to national conditions. The most  popular applicable instruments are tariff policy, reduced-rate lending, export subsidies, and currency regulation.

Discussion. For effective import substitution and growth of non-commodity exports it is necessary to expand hidden subsidies, reduce industrial enterprises’ costs via preferential resource tariffs, develop reduced-rate lending and state export support. It is also important to develop state industrial holdings capable of supporting strategic sectors and creating internal demand for domestic innovations.