China’s electric car attack backed by government subsidies. In 2022 BYD received 2.1 billion in bonuses

The aggressiveness of Chinese manufacturers that export electric models to Europe is strongly supported by the subsidies that the Beijing Government recognizes for the largest manufacturers of electric models, first of all BYD. The Kiel Institute for the World Economy (ifW Kiel) explains this in a definitive study that details the subsidies that China provides, within its industrial system, to those working in green technology sectors such as electricity or ‘renewable energy’. the wind All with a multiplier of three to nine times the amount that other OECD countries such as the United States or Germany spend to get subsidies for their companies. In particular – we read in the study – the electric car manufacturer BYD currently receives large subsidies: in 2020 they amounted to almost 220 million euros and in 2022 they had already increased to 2.1 billion.

If we compare these figures with sales, explains ifW Kiel, this corresponds to an increase in the incidence of direct subsidies from 1.1% in 2020 to 3.5% in 2022. BYD also receives significantly more bonuses for the purchase of electric vehicles in China than all other national manufacturers such as Gac and Geely or brands – such as Tesla and Volkswagen and GM jvs in China – that produce in that country. “China’s subsidy policy – says Dirk Dohse, research director of IfW Kiel and co-author of the study – has been a hot topic for years because the European industry is often no longer competitive in terms of price compared to Chinese competition”. “But without the technology subsidized by China, the products that Germany needs for the green transition would also be more expensive and scarce.” The document shows that in 2022, more than 99% of listed Chinese companies received direct government subsidies.

China often uses them in a manner aimed at bringing important technologies to maturity and with other supporting measures – such as preferential access to key raw materials, technology transfer and preferential procedures in public procurement and administration – Chinese companies have been able to expand very quickly in many countries . green technology sector, dominate not only in the domestic market but increasingly also in that of the European Union.