The economist John Stuart Mill's standard for infant industries is that an industry can't compete with foreign enterprises because of its lack of technical experience, low labor productivity and higher product cost than the world market price, but it can continue to produce under protective measures such as tariffs and subsidies, and after a period of time, it can make profits under free trade conditions and stand on its own feet by reaching the level of other countries. This kind of enterprise is a new enterprise. It is necessary and worthwhile to provide temporary protection.
Specific content:
When an industry is small in scale and its production cost is higher than the international market price, if it is allowed to compete freely, it will inevitably lose money. If the government gives protection for a period of time, so that the industry can develop and grow, fully realize economies of scale and reduce costs, and finally the industry can face free competition and make profits, then the industry can be cultivated as a naive industry.