Beijing’s industrial subsidies are on average three to four times higher than in Organisation for Economic Co-operation and Development (OECD) countries — sometimes up to nine times as much. A report published this week by IfW-Kiel estimated that industrial subsidies amounted to €221 billion or 1.73% of China’s gross domestic product in 2019. Another study put annual subsidies typically at around 5% of GDP.
The IfW-Kiel report revealed how Chinese subsidies for domestic green-tech firms had increased significantly in 2022. The world’s largest EV maker, BYD, received €2.1 billion, compared with €220 million just two years earlier. Support for wind turbine maker Mingyang rose from €20 million to €52 million.
Europe’s green-energy sector has already taken a beating from cheap Chinese imports of solar panels, which have wiped out several domestic players and prompted an EU anti-subsidy probe. Though EU countries installed record levels of solar capacity last year — 40% more than in 2022 — the vast majority of panels and parts came from China, according to data from the International Energy Agency.
Analysts argue that China can’t succeed without strong and stable markets for its products, which should give US and EU leaders the edge in negotiations with Beijing.
(U.S perspective)
If we didn’t let oil companies basically control the US this wouldn’t be a problem.
I think we can barely blame another country for doing something better than us. I don’t have any strong opinions on China one way or another, but this whole thing with the US panicking because another country is pushing out something good for the environment more-so than them is just silly. Our government has sat here twiddling their thumbs about the environment for decades and when someone else beats us to doing something about it on a large scale it’s suddenly a huge issue?
Perhaps I’m missing some context, I’m open to it, but I really can’t see any case where this isn’t the government’s own fault for not prioritizing the environment.