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What Do We Know About Chinese Industrial Subsidies?

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  • François Chimits

Abstract

While Chinese industrial subsidies have been one of the key drivers of international trade tensions, the details of the phenomenon itself are often overlooked. Reviewing the existing datasets and methodologies used to assess Chinese public supports, this Policy Brief tries to bring more clarity on what is known, and what is not. The most frequently used datasets in the literature are dated and/or largely incomplete, and find limited industrial support compared to more specific analyses. To further complicate things, the new development model pursued by the current leadership seems to champion the idea of “guiding” economic entities to align with Party-State objectives, which, by diffusing public intervention throughout the economy, makes it more difficult to assess the scale of subsidies. The Chinese authorities highly structured and detailed communication and policy planning offers alternative metrics to assess the distribution and evolution of public support to the industry, enabling a complementary approach to triangulate the actual subsidies to industrial production in China.

Suggested Citation

  • François Chimits, 2023. "What Do We Know About Chinese Industrial Subsidies?," CEPII Policy Brief 2023-42, CEPII research center.
    • Handle: RePEc:cii:cepipb:2023-42
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    File URL: http://www.cepii.fr/PDF_PUB/pb/2023/pb2023-42.pdf
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    References listed on IDEAS

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    1. Thomas Piketty & Li Yang & Gabriel Zucman, 2019. "Capital Accumulation, Private Property, and Rising Inequality in China, 1978–2015," American Economic Review, American Economic Association, vol. 109(7), pages 2469-2496, July.
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    Cited by:

    1. Klaus S. Friesenbichler & Agnes Kügler & Andreas Reinstaller, 2021. "The Impact of Import Competition from China on Firm-level Productivity Growth in the EU," WIFO Working Papers 623, WIFO.

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    More about this item

    Keywords

    China; Industrial Policy; Subsidies; Trade policy; WTO;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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