This is the money that BYD & Co receives from Beijing

Research shows how much China’s electric car makers are benefiting from government subsidies. Considering the threat of EU tariffs, the number is explosive.

Kiel – Electric car manufacturers from China are flooding the world market, especially Europe, with their models. The EU he sees unfair competition at work and plays with punitive taxes. The European Commission has therefore launched an official anti-subsidy investigation.

Analysis “Foul play? IfW Kiel’s investigation into the extent and scope of industrial subsidies in China may stimulate this investigation. The authors show that more than 99 percent of China’s listed companies received government subsidies in 2022. China often uses its subsidies in a highly targeted manner to bring key technologies to market maturity.

This is how much money Chinese electric car manufacturers get from the government: Beijing is supporting BYD with several billion euros

According to the survey, electric mobility is one of the most favored industrial sectors. Electric car manufacturer BYD received the equivalent of 220 million euros directly from the government in 2020, and in 2022 it was already 2.1 billion euros. This means that BYD gets more money than its domestic competitors: GAC only received around 200 million euros in 2022.

Also from payment of purchase to Electric cars According to the study, BYD in China is more profitable than all other domestic manufacturers such as GAC or foreign companies that produce locally. Tesla. BYD received the equivalent of 1.6 billion euros in 2022. The second largest recipient is Tesla with 0.4 billion euros, followed by GAC with approximately 0.3 billion euros.

Here’s how much money Chinese car manufacturers receive from the government: Manufacturers also benefit from subsidies for battery makers.

“However, that number does not adequately capture the true scale and scope of subsidies for green technology in China,” says Dirk Dohse, research director of IfW Kiel and co-author of the study. For example, BYD also benefits from subsidies to battery manufacturers by allowing the company to buy cheaper components, as well as from the promotion of buyers of battery-powered cars through increased demand.

However, the government is not only supporting the mobility sector, but also wind turbine manufacturers like Goldwing and Mingyang, according to the study. Subsidies at the Mingyang factory rose from 20 million euros in 2020 to 52 million euros in 2022.

This is how the Chinese government supports the industry: companies don’t just receive subsidies

The study also says that Chinese companies, driven by subsidies in many areas of green technology, have been able to expand very quickly, dominate the Chinese market and increasingly penetrate the European Union markets. Government support includes not only money, but also other measures such as preferential access to important raw materials or sometimes forced technology transfer to foreign investors.

In recent years, the country has become a world leader in photovoltaic systems and battery cells. China is clearly aiming for this leadership role in other green technology products such as electric vehicles and wind turbines.