EU Concerns about Chinese Subsidies: What the Evidence Suggests

Authors

• Bickenbach
• F.
• Dohse
• D.
• Langhammer
• R.J.
• Liu
• W.-H.

Publication Date

DOI

10.2478/ie-2024-0044

JEL Classification

Key Words

Related Topics

China uses subsidies extensively to take a leading role on the global markets of green-tech products such as battery electric vehicles and wind turbines. Against the background of the current EU investigations into Chinese subsidies in these sectors this article takes a careful look into the Chinese subsidy system and provides new data on direct government subsidies to leading Chinese producers of electric cars and wind turbines. Extensive government sup-port has allowed Chinese companies to scale up rapidly, to dominate the Chinese market and to expand into foreign markets. The article concludes that the EU should use its strong bar-gaining power due to the single market to induce the Chinese government to abandon the most harmful subsidies.

Kiel Institute Experts