From Beijing 3.4 billion in subsidies to BYD

HELP FROM THE GOVERNMENT – For a while i Chinese manufacturers they are under the magnifying glass of EU inspectors, who want to assess whether their electric vehicles have received incentives from the government of Beijing capable of changing the competition. New evidence comes from a study of As an Institutionaccording to which BYD they would receive at least 3.4 billion euros in government subsidies. The support The Chinese giant would rise from 220 million euros in 2020 to 2.1 billion in 2022 as part of Beijing’s push to dominate the field of electric vehicles and other “green” technologies. This type of government aid “has allowed Chinese companies to expand rapidly, dominate the Chinese market and facilitate increased expansion in EU markets,” the institute says.

REDUCTION STATISTICS – Government subsidies would be interpreted in various ways: not only the direct transfer of moneyincreased from 1.1 to 3.5% between 2020 and 2022, but also in the form of access preference for raw materials criticism, forced technology transfer by foreign investors and favorable treatment in public procurement and governance procedures. Among other things, “the statistics are clearly demeaning actual reach and scope of subsidies for green technology in China,” notes Dirk Dohse, research director of As an Institution. For example, according to the study, BYD would also benefit from the AI ​​subsidy battery manufacturersthus the availability of low prices, and incentives for the purchase of electric vehicles, which stimulated demand.

CONVERSATION IS REQUIRED – The authors of the study suggest that the European Union: start a conversation and the Beijing government to persuade China to remove subsidies, which is mainly harm for the economy of the Old Continent. According to the authors, such negotiations can be successful “given the current weakness of China’s macroeconomics, its strength in green technology and its tension with the United States.”