China Drives Global Industry Subsidies to $108 Billion in 2024, Highest Since 2009
Updated
Updated · Reuters · Jun 1
China Drives Global Industry Subsidies to $108 Billion in 2024, Highest Since 2009
2 articles · Updated · Reuters · Jun 1
$108 billion in subsidies flowed to 15 industries in 2024, the OECD said, keeping support near 2023 peaks and at the highest share of company revenue since the 2009 financial crisis.
China drove the rebound: the OECD estimated Chinese firms received three to eight times more government support than OECD-based rivals on average from 2005 to 2024.
Nearly 60% of Chinese firms' market-share gains were linked to subsidies, versus about 22% for all firms that expanded share, according to the OECD's MAGIC database tracking what companies actually receive.
Solar panels, semiconductors, aluminium, steel and shipbuilding were the most subsidized sectors over 2005-2024, while the OECD said the support did not produce meaningful productivity or profitability gains.
OECD ministers meet Wednesday and Thursday to discuss fairer global trade rules as concern grows over opaque subsidy systems, particularly in China.
With China phasing out export tax rebates on solar panels, how will this reshape global green tech supply chains and costs for developing nations?
As China's heavy subsidies fail to drive profitability, could global overcapacity trigger a new wave of trade conflicts or industry consolidations?
Will the world's response to China's dual economy model set a precedent for future industrial policy, or will it deepen global economic fragmentation?