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EU Concerns About Chinese Subsidies: What the Evidence Suggests

Author

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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.
    • Handle: RePEc:zbw:ifwkie:301402
    DOI: 10.2478/ie-2024-0044
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    References listed on IDEAS

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    1. Baqaee, David & Hinz, Julian & Moll, Benjamin & Schularick, Moritz & Teti, Feodora A. & Wanner, Joschka & Yang, Sihwan, 2024. "What if? The effects of a hard decoupling from China on the German economy," Kiel Policy Briefs 170, Kiel Institute for the World Economy.
    2. 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. Iroda Xasanova & Maaz Ahmad, 2026. "Evaluating the effectiveness of import substitution versus export-oriented strategies in Uzbekistan’s economic development: lessons from South Korea," Quality & Quantity: International Journal of Methodology, Springer, vol. 60(1), pages 1771-1787, February.
    2. Sebastian G. Kessing, 2025. "Market power and global public goods," Volkswirtschaftliche Diskussionsbeiträge 198-25, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    3. Klaus Weyerstraß & Martin Ertl & Daniel Schmidtner & Adrian Wende & Hannes Zenz, 2025. "Die Einbettung des österreichischen Außenhandels in die globale Arbeitsteilung," FIW Research Reports series y:2025:m:11, FIW.
    4. Giovanni Dosi & Lorenzo Cresti & Federico Riccio & Maria Enrica Virgillito, 2025. "Industrial policies for global commons: why it is time to think of the ghetto rather than of the moon," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 52(3), pages 845-866, September.

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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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