EU Concerns About Chinese Subsidies: What the Evidence Suggests

Frank Bickenbach, Dohse Dirk, Langhammer Rolf J. and Liu Wan-Hsin
Additional contact information
Dohse Dirk: Kiel Institute for the World Economy, Germany.
Langhammer Rolf J.: Kiel Institute for the World Economy, Germany.
Liu Wan-Hsin: Kiel Institute for the World Economy; and Kiel Centre for Globalization, Germany.

Intereconomics: Review of European Economic Policy, 2024, vol. 59, issue 4, 214-221

Abstract: China uses subsidies extensively to take a leading role in 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 at the Chinese subsidy system and provides new data on direct government subsidies to leading Chinese producers of electric cars and wind turbines. Extensive government support 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 bargaining power due to the single market to induce the Chinese government to abandon the most harmful subsidies.

JEL-codes: F13 O25 O53 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Working Paper: EU Concerns About Chinese Subsidies: What the Evidence Suggests (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:intere:v:59:y:2024:i:4:p:214-221:n:1008

DOI: 10.2478/ie-2024-0044

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