China, the main government incentive: “BYD alone received 2.8 billion”

For some time, the European Union has criticized China’s heavy subsidies to its manufacturers electric cars: not surprisingly, Brussels has launched investigation against dumping which may introduce customs duties on imports from Dragon. Union institutions have so far limited themselves by claiming to have them “sufficient evidence” on unfair Chinese competition, but now there is also a study that calculates the amount of subsidies: the “signature” is that of the Kiel Institute, a German research center specializing in the international economy. Well, according to researchers, Beijing’s aid is three to nine times more than that given by other OECD countries such as Germany and the United States. And the company that has benefited the most is BYD.

And give. China’s subsidies, which according to the Kiel Institute affected more than 99% of companies listed on the stock market in 2022 alone, are allocated to develop important technologies and take various forms: preferential access to important raw materials, forced transfer of technology from. share of foreign investors or preferences in public procurement and administrative procedures. The only one BYD received “higher subsidies” and estimated to be around 220 million euros in 2020, more than 500 million in 2022 and 2.1 billion in 2023. Basically, the aid rose from 1.1% of income to 3 .5% within three years. In addition, the company has received more incentives for its electric vehicles than other domestic manufacturers such as GAC or foreign companies such as Tesla. Furthermore, the institute warns that the figures “clearly underestimate the true level of subsidies for green technology in China”: BYD, in fact, also benefits from subsidies given to battery manufacturers because they allow them to reduce production costs, and also from aid. targeting buyers of electric vehicles because they stimulate demand. In short, double the benefits.