Chinese companies received three to eight times more subsidies than Western companies between 2005 and 2024, according to a report released Monday by the Organisation for Economic Co-operation and Development (OECD).
The findings came at a time when European policymakers were trying to halt the wave of low-cost Chinese imports in sectors ranging from metals to chemicals, from cars to green technologies.
Last week the European Commission held a ’ orientation debate in Brussels“ and concluded that the current state of the ” trade and investment relationship [with China] is not sustainable“.
The OECD warned that state aid risks disrupting the playing field. According to OECD Secretary-General Mathias Cormann, “, large and permanent industrial subsidies can disrupt global markets, create unfair competitive advantages and contribute to oversupply capacity.
The report noted that Chinese firms benefit from government support through grants and under-market borrowing (BMB), with the latter being “, which is particularly large.
The report noted that this support is provided by the structure of “'s financial system, especially the fact that most corporate loans are issued by state banks and policy banks at rates close to the China’'s one-year lending reference point.
Global government subsidies are concentrated in sectors such as solar panels, semiconductors and heavy industries such as steel and aluminum.
Average assistance for wind turbines is a measure of global company revenue for the period 2005-2024. %It took place at the level of 1’i. But subsidies for Chinese companies have consistently exceeded “ 2% over the past 15 years, and ” more than once exceeded ’ 5% per year.
The support is even more pronounced in semiconductors. The OECD estimates that subsidies are the average of company income worldwide. %2’sini constitutes, but “China-based subsidies for companies in 2021 and 2022’ company revenues are almost ’ stated that he had reached ”.
The EU says some Chinese subsidies are unfair commercial practices and is investigating the products one by one. In 2022’de also adopted the Regulation on Foreign Subsidies, which allows the Commission’ to investigate foreign companies receiving government support when entering merger or public tender procedures in the bloc.
