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Chinese Electric Car Manufacturers Receives Over $230 Billion In Government Subsidies
Chinese electric car manufacturers have received at least 231 billion dollars (about 216 billion euros) in government subsidies over the past fifteen years. Just over half of the total aid amount consisted of sales tax exemptions, the Washington-based think tank Center for Strategic and International Studies (CSIS) reports, based on survey data from 2009 to the end of 2023.
The rest of the support consists of subsidies on the purchase of electric cars, government financing for infrastructure such as charging stations, government purchases of electric vehicles, and research and development support programs, writes China specialist and researcher Scott Kennedy of CSIS.
These findings became known shortly after the European Union announced it would increase import duties on Chinese electric cars. According to Brussels, Chinese manufacturers can push European competitors out of the market thanks to government subsidies. China does not agree with this, and the Chinese Ministry of Commerce warned on Friday that European actions could lead to a trade war.
According to Kennedy, the total Chinese aid amount is on the cautious side. For example, discount programs at the local level in cities such as Shanghai and Shenzhen, which are intended to encourage fuel car owners to switch to electric cars, are not taken into account. It also doesn’t include the cheap land, electricity, and credit that some electric car makers have access to. It also does not include battery manufacturers and other companies in the electric car supply chain.
