OECD Report Reveals Chinese Companies Receive Substantial State Subsidies

Chinese companies have been found to receive between three and eight times more subsidies than Western firms from 2005 to 2024, as per a recent report by the Organisation for Economic Co-operation and Development (OECD). The OECD Secretary-General Mathias Cormann cautioned that these industrial subsidies could distort global markets, providing unfair competitive advantages and leading to excess supply capacity. State support for Chinese firms mainly comes in the form of grants and below-market borrowings, facilitated by the country’s financial system structure. The report highlights that global state subsidies are particularly concentrated in sectors like solar panels, semiconductors, steel, and aluminum….