Why State Aid Stirs Controversy From China to the EU

In theory, the system of free trade driving the world economy is supposed to provide a “level playing field” for all. In practice, countries have long complained that rivals unfairly dish out aid in the form of state-backed subsidies to boost favored companies — often as they themselves do the same. The U.S. has been a vocal critic of European subsidies, notably aircraft financing, and has been focusing its attention increasingly on China’s backing for its companies; in turn the European Union