China funneling billions into BYD to crush European and U.S. competitors, study says
China funneling billions into BYD to crush European and U.S. competitors, study says
China makes extensive use of subsidies in order to take a leading role on the global markets in the green technology sectors of electric vehicles, wind turbines and railway rolling stock. According to DiPippo et al. (2022) and recent OECD studies, the industrial subsidies in China are at least three...
Chinese leading electric car manufacturer BYD received direct state subsidies of approximately EUR 220 million in 2020, rising to EUR 2.1 billion in 2022. In terms of business revenues, direct subsidies increased from 1.1 percent in 2020 to 3.5 percent in 2022. This is the result of an investigaton by Germany's Kiel Institute For The World Economy.
Additionally, BYD receives significantly more purchase premiums for electric cars in China compared to other domestic manufacturers like GAC or foreign companies producing locally, such as Tesla or VW's joint ventures, the study says.
However, the figures clearly understate the true scale and scope of green technology subsidies in China, ss BYD also benefits from subsidies to battery producers through lower input prices, as well as subsidies to buyers of battery electric vehicles, thus stimulating demand.
China's massive state subsidies are not limited to EV cars. According to a very conservative estimate, industrial subsidies in China amounted to around EUR 221 billion or 1.73% of Chinese GDP in 2019.
The authors urge the European Union to engage in negotiations with the Beijing government amidst the recently initiated anti-subsidy proceeding against imports of electric vehicles from China, aiming to persuade China to withdraw subsidies particularly harmful to the EU. Given China's current macroeconomic weakness, its relative strength in green technology sectors, and its tensions with the US, the authors see a realistic chance of successful negotiations.
Next week, German chancellor is visiting China, accompanied by an induszry delegation.
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Every country subsidizes their own auto industry. Every single one of them.
Ssssshhhhhh!!! We're having a circlejerk here!
Most countries don't allow slave labor throughout their supply chain.
Teslas built in China for China can't match the costs per unit of BYD. The Chinese government is playing king maker to an absurd degree.
Uhm, the United States, with 13th amendment?
Can you show me the prisons assembling lithium battery cells?
Kind of interesting actually. They don't mention any cars specifically but they throw the Air Force under the bus.