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.
@blazera@lemmy.world
China is investing government money into electric car companies so that they can produce more if them cheaper …
Your positive framing of China’s economic policy is completley out of touch. It really helps to read more than a few lines of a post. The negative consequences of Chinese subsidies are obvious in tbe country’s domestic market, and there’s no reason to copy that for the world.
China’s EV price war is killing brands and infuriating consumers
China’s EV market has slowed down as consumers cut spending in a post-pandemic economy.
Brands are fighting a fierce price war in a crowded industry, leading to fast depreciation of electric cars.
Some startups are on the brink of collapse, leaving software maintenance in limbo.
And this is just one example. Read the study, find more research, tere is a lot.of it.
Man thats a weird article trying to frame cheaper EVs as a terrible thing. Chinas EV market is by far the largest and fastest growing in the world, by a huge margin.
Chinas EV market is by far the largest and fastest growing in the world
Did you read the articles?
Chinese EV car manufacturers are making losses, some already filed for bankrupcty, practically all survive on state subsidies. Chinese customers are left behind with no after-sales services and software updates.
basically a lot of companies attempted to get into the game but were crushed by BYD. an effect of going bankrupt early on because you didnt have enough customers is…you didnt have a lot of customers. So customers left without support are a small minority. The companies responsible for China’s massive EV growth are alive and well.
