China’s Subsidy Battle: Redefining Global Capitalism

Governments worldwide are ramping up subsidies in strategic sectors to bolster supply chains and reduce reliance on geopolitical rivals. A report by the OECD reveals that global state subsidies have hit $108 billion, the highest since the 2008-2009 financial crisis. China stands out by providing firms with 3-8 times more state support than OECD peers, fueling dominance in sectors like semiconductors and solar panels. This disparity is most pronounced in industries like semiconductors, where Chinese firms receive subsidies equivalent to ~10% of revenues, far outstripping the global average of 2%. China’s semiconductor exports have skyrocketed, reflecting significant growth driven by…