Subsidies

All news and posts of our editorial team on the topic

Beijing lowers hurdles for chip subsidies
To cushion the impact of the US chip embargo, China is facilitating access to subsidies for its semiconductor industry. The Financial Times writes that the former requirement to meet certain targets will no longer apply. In addition, companies are to be more involved in government-funded research projects. Among the beneficiaries are chip producers such as […] continue reading →
Bavarian industry calls for defense against subsidies
The Association of Bavarian Business (vbw) is calling for EU measures against subsidized products from China. If necessary, these should also be unilateral. The demand stems from a study prepared by the Prognos research institute for the vbw. It found that Chinese subsidies make it more difficult to sell German products on the global market, […] continue reading →
EU creates law against China’s subsidies
The European Parliament has given the green light to a new trade instrument aimed at preventing takeovers of European firms by highly subsidized foreign companies. On Thursday, MEPs voted in favor of the measure by a large majority, which could come into force shortly and is intended to combat market distortions. Brussels also wants to […] continue reading →
EVs receive subsidies beyond 2022
As expected, the State Council has postponed the end of subsidies for the purchase of cars with eco-friendly engines. The subsidies were originally supposed to expire at the end of 2022. Now they will continue to apply for the time being, according to reports from the state broadcaster CCTV on Friday. The news portal Caixin […] continue reading →
Extension of EV subsidy draws closer
China’s Ministry of Commerce joined other ministries on Thursday in holding out the prospect of extending tax breaks on the purchase of electric vehicles. A plan to return to full tax on EVs from next year could now be scrapped. The world’s largest car market has been hit hard in recent months by rigorous measures […] continue reading →
Possible extension of EV subsidies
The Chinese government considers continuing subsidies for the purchase of EVs. The original plan was to stop the expensive subsidies during this year. But now the state broadcaster CCTV is reporting about plans to maintain the subsidies. Reuters also reported on talks with car manufacturers on this matter (China.Table reported).The plans are part of the […] continue reading →
Extension of EV subsidies possible
China apparently is considering an extension of expiring EV subsidies. Authorities are currently in talks with carmakers on the matter, Reuters reported on Wednesday, citing three anonymous sources. Keeping the expensive subsidies, which were supposed to end in 2023, is intended to support the segment’s growth despite the general economic downturn, the sources said. Reuters […] continue reading →
China cuts EV subsidies
The recent Ministry of Industry and Information Technology (MIIT) report on settlement of NEV subsidies (2019-2020) for each automotive manufacturer reaffirms the trend of subsidy reductions. The MIIT plans to further cut the NEV subsidies by another 30% year-on-year in 2022 and fully terminate the subsidy scheme after 2022. Reacting to the subsidy cuts, both foreign and domestic automotive brands are adjusting their pricing strategy, but use different approaches. ​ continue reading →
Subsidies for EVs set to expire
China is cutting subsidies for vehicles with alternative drives next year. The government had already announced in April 2020 that it would gradually cut state subsidies, first by 10 percent, then 20 percent, and finally by 30 percent in 2022. The subsidy will now end completely on December 31, 2022, the Finance Ministry announced on […] continue reading →
China’s grand ambitions in innovation and research
Business representatives frequently accuse the Chinese government of unfairly supporting its domestic companies. And indeed, there are some high-profile cases. But China's subsidies in the field of research and development hardly have any positive effects. The framework conditions for innovation also leave much to be desired. But Beijing is taking great efforts to make its economy more innovative. continue reading →
German companies support “more robust” measures against China
In the trade dispute between the US and the EU, China regularly emphasises the openness of its own market. In practice, however, companies perceive the situation differently: they encounter barriers to entry and compete with highly subsidised rivals. Concerns about this are growing - especially since Chinese industry has now caught up in terms of product range and technical expertise. continue reading →
EVs: export success with subsidies
China has subsidized the e-car market with the equivalent of 4.3 billion euros over the past five years. However, the subsidies are decreasing per vehicle. They are to be phased out completely in 2023. There are many indications that this form of industrial policy will be successful: The expansion plans of the Chinese carmakers are proof of their conviction of their own competitiveness. continue reading →
Beijing wants ‘bigger and stronger’ e-car firms
China wants to consolidate its own e-car industry and bring out “bigger and stronger” companies in the field. “We currently have too many EV companies in the market,” Minister of Industry and IT Xiao Yaqing said at a press conference yesterday. The companies are mostly small at present, and the government supports mergers and restructuring […] continue reading →
Exit out of the sanctions trap: ‘We’re simply filling the CAI with life!’
Joerg Wuttke in conversation with Frank Sieren: The President of the EU Chamber of Commerce in China believes sanctions are wrong, argues for pushing ahead with the investment agreement, and sees only limited European political influence on China. While the EU should protect itself against unfair competition from Chinese state-owned enterprises, it should see competition from private companies as an incentive. The goal of the policy should be a prosperous China. At the same time, Wuttke warns Beijing not to squander its opportunities out of overconfidence. continue reading →
Altmaier wants to strengthen German shipbuilding
With the help of the EU, the German government wants to better assert itself against Far Eastern competition in the shipbuilding sector. “There are countries that are trying in a very clear and sometimes aggressive way to monopolize or dominate parts of the civil shipbuilding industry, and that is why we will not simply let […] continue reading →
CAI in a coma – EU drafts new Industrial Strategy
EU Trade Commissioner Dombrovskis makes it clear: The CAI investment agreement between the EU and China is not dead – but there are significant hurdles. According to EU parliamentarians, it could take years to dismantle them. However, while the CAI is stuck, there is a lot of work going on in other areas. Brussels wants to better protect European companies from unfair competition from state-subsidized companies and make their own supply chains more independent. That, too, is aimed at China.  continue reading →
EU cracks down on Chinese subsidies
The EU Commission wants to prevent European companies from being taken over by highly subsidized foreign companies – the corresponding legislative proposal is now to be presented next Wednesday, a spokeswoman for the Directorate-General for Competition confirmed to China.Table. Brussels also wants to stop state-backed companies from abroad from taking public contracts away from European […] continue reading →