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.
It’d be interesting to know how much of that is a mercantilist attempt to capture market share in other countries (i.e., dumping) and how much is reflective of a sincere effort by the Chinese government to address the climate crisis.
I suspect it’s the former, since alongside China’s renewables investment, China’s emissions of greenhouse gases continue to grow, as does its consumption of coal.
Why not subsidize genuinely green tech in other countries too?
No no, better to whine about how China isn’t playing fair and continue not doing anything
It’d be interesting to know how much of that is a mercantilist attempt to capture market share in other countries (i.e., dumping) and how much is reflective of a sincere effort by the Chinese government to address the climate crisis.
I suspect it’s the former, since alongside China’s renewables investment, China’s emissions of greenhouse gases continue to grow, as does its consumption of coal.