EU Concerns About Chinese Subsidies: What the Evidence Suggests

Frank Bickenbach, Dirk Dohse, Rolf J. Langhammer and Wan-Hsin Liu

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)

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.

Keywords: China; industrial subsidies; battery electric vehicles; wind turbines; railway rolling stock; EU; anti-subsidy proceeding (search for similar items in EconPapers)
JEL-codes: F13 O25 O53 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-cna, nep-eec, nep-ene, nep-int and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: EU Concerns About Chinese Subsidies: What the Evidence Suggests (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:301402

DOI: 10.2478/ie-2024-0044

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