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EU Concerns About Chinese Subsidies: What the Evidence Suggests

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  • Bickenbach Frank

    (Kiel Institute for the World Economy, Germany.)

  • 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.)

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.

Suggested Citation

  • Bickenbach Frank & Dohse Dirk & Langhammer Rolf J. & Liu Wan-Hsin, 2024. "EU Concerns About Chinese Subsidies: What the Evidence Suggests," Intereconomics: Review of European Economic Policy, Sciendo, vol. 59(4), pages 214-221.
    • Handle: RePEc:vrs:intere:v:59:y:2024:i:4:p:214-221:n:1008
    DOI: 10.2478/ie-2024-0044
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    References listed on IDEAS

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    1. Li, Aitong & Sun, Ying & Song, Xiaobin, 2023. "Gradual improvement and reactive intervention: China's policy pathway for developing the wind power industry," Renewable Energy, Elsevier, vol. 216(C).
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    Cited by:

    1. Giovanni Dosi & Lorenzo Cresti & Federico Riccio & Maria Enrica Virgillito, 2024. "Industrial policies for global commons: why it is time to think of the ghetto rather than of the moon," LEM Papers Series 2024/32, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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      JEL classification:

      • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
      • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
      • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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