China-europe mozambique solar container subsidy

Are Chinese wind turbines subsidised by the EU?

Similar discussions have been held regarding subsidies to Chinese producers of wind turbines: in April 2024, EU Commissioner Margrethe Vestager (2024) announced the start of an investigation into Chinese wind turbines under the EU’s foreign subsidies regulation. These allegations must be taken seriously.

How does the EU deal with China's reliance on solar?

Rather than blocking Chinese products and reshoring manufacturing, the EU instead invests existing resources in wind energy and hydropower. It thereby offsets the risks emanating from the dependency on China in solar by developing greater capacity in sectors where European companies are still more competitive.

Should the EU use its bargaining power to induce China to abandon subsidies?

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. Green technologies are increasingly at the centre of international trade and technology policy.

Why are Chinese firms excluded from EU subsidies?

Chinese firms are excluded from receiving these subsidies based on joint criteria on trustworthiness and sustainability in supply chains agreed at the G7 level. As a consequence, they cease expanding their investments in the EU.

Does China still offer EV subsidies?

China ended a 13-year consumer subsidy scheme for EV purchases in 2022. But local governments still offer subsidies and tax rebates and the central government has prolonged a tax reduction on EV purchases to 2027. CSIS, the US think-tank, has put Beijing’s cumulative state spending on the EV sector at more than $125bn between 2009 to 2021.

How many companies in China receive government subsidies in 2022?

The database also shows that in 2022 almost all listed companies in China (more than 99% in the database) have received direct government subsidies (Bruegel, 2024). Sources: Bruegel (2024), National Bureau of Statistics of China (2023) and Deutsche Bundesbank (2024); authors’ own currency conversion, calculation of ratios and illustration.