Professor Liu once systematically analyzed the basic characteristics and functions of industrial policies in the 1997 “Industrial Economics” textbook published by Nanjing University Press. It is now published again to echo the academic controversy of Lin and Zhang and call for the reform of the implementation of industrial policies as soon as possible.Industrial policy is a relatively complete policy system designed systematically from the overall situation of the country’s industrial development. Its core is a country’s economic structure, especially the issues of industrial structure and industrial organization. Industrial policies generally have the following characteristics: they have multiple functions, the degree of intervention in the economy is deep, the theoretical basis is multifaceted, the means are comprehensive, and the content is subject to change.The basic function of industrial policy is to indicate the direction of industrial development, make industrial development plans, and adjust the relationship between various industries and their internal structural changes.The total balance method based on demand management and the industrial policy based on supply management are two different macro-management methods. They complement each other in function.
