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EU Concerns About Chinese Subsidies: What the Evidence Suggests

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

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," Open Access Publications from Kiel Institute for the World Economy 301402, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkie:301402
    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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      More about this item

      Keywords

      China; industrial subsidies; battery electric vehicles; wind turbines; railway rolling stock; EU; anti-subsidy proceeding;
      All these keywords.

      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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