OECD: Chinese firms received up to eight times more state aid than global rivals

The OECD says Chinese companies in key industries received far more state support than international rivals between 2005 and 2024. In a report published on Monday, the organisation estimated that firms in sectors such as steel, cars, semiconductors and solar panels received between three and eight times more public aid than competitors abroad.

The OECD said its estimates were “conservative” and based on disclosures from major companies across 15 industries. The support included direct subsidies, tax breaks and low-interest loans from state-backed financial institutions.

According to the report, public support played a major role in China’s rise in global manufacturing. The OECD estimated that nearly 60% of Chinese companies’ gains in global market share could be linked to state aid.

The sectors studied included aerospace, aluminium, cars, chemicals, fertilisers, semiconductors, shipbuilding, steel, telecommunications equipment, wind turbines and solar panels.

De Wever urges EU to harden stance on China's trade practices

Belgian prime minister Bart De Wever has called on the European Union to adopt a firmer approach towards what he describes as unfair Chinese...

belganewsagency.eu

Global subsidies for these industries reached their highest level since the 2008 financial crisis in 2023 and 2024, averaging 1.3% of company revenues last year. The OECD said total public support across the 15 sectors reached 108 billion dollars in 2024.

The findings come as tensions grow between China and the European Union over trade. Brussels has accused Beijing of unfair competition and is considering tougher measures to protect European industries. China has warned it will respond firmly to any new EU restrictions.

European leaders have also become increasingly vocal about dependence on Chinese imports, especially in strategic sectors such as electric vehicles, clean energy and critical raw materials. Belgian prime minister Bart De Wever recently urged the EU to take a stronger stance against what he called unfair Chinese competition, warning that Europe’s industrial base is under pressure.

^{A shipbuilding facility along the Yangtze River in Yangzhou, east China's Jiangsu province © CN-STR / AFP}