Chinese leading electric car manufacturer BYD received direct state subsidies of approximately EUR 220 million in 2020, rising to EUR 2.1 billion in 2022. In terms of business revenues, direct subsidies increased from 1.1 percent in 2020 to 3.5 percent in 2022. This is the result of an investigaton by Germany’s Kiel Institute For The World Economy.
Additionally, BYD receives significantly more purchase premiums for electric cars in China compared to other domestic manufacturers like GAC or foreign companies producing locally, such as Tesla or VW’s joint ventures, the study says.
However, the figures clearly understate the true scale and scope of green technology subsidies in China, ss BYD also benefits from subsidies to battery producers through lower input prices, as well as subsidies to buyers of battery electric vehicles, thus stimulating demand.
China’s massive state subsidies are not limited to EV cars. According to a very conservative estimate, industrial subsidies in China amounted to around EUR 221 billion or 1.73% of Chinese GDP in 2019.
The authors urge the European Union to engage in negotiations with the Beijing government amidst the recently initiated anti-subsidy proceeding against imports of electric vehicles from China, aiming to persuade China to withdraw subsidies particularly harmful to the EU. Given China’s current macroeconomic weakness, its relative strength in green technology sectors, and its tensions with the US, the authors see a realistic chance of successful negotiations.
Next week, German chancellor is visiting China, accompanied by an induszry delegation.
What a major embarassment for EU. China benefitting the climate by getting fossil fuels off the roads. And EU throwing a tantrum to try and stop them.
There are some comments like this, suggesting that the commentators didn’t even click the link.
China is investing government money into electric car companies so they can produce more of them for cheaper. this gives them a competitive edge against electric car companies in EU that arent being bolstered by government subsidies. The EU has two options: one, the environmental option, they compete by subsidizing their own car companies to produce electric vehicles, which would accelerate the effort to stop relying on fossil fuels and reduce emissions by having two regional markets focused on vehicle electrification. Or two, the capitalism option, they compete by pressuring China to drop their subsidies, which would slow down efforts to stop relying on fossil fuels as neither regional market is focused on vehicle electrification.
from your article, “The authors urge the European Union to engage in negotiations with the Beijing government amidst the recently initiated anti-subsidy proceeding against imports of electric vehicles from China, aiming to persuade China to withdraw subsidies particularly harmful to the EU.”
ensuring we stay on track for the absolute worst timeline for humanity.
@blazera@lemmy.world
Your positive framing of China’s economic policy is completley out of touch. It really helps to read more than a few lines of a post. The negative consequences of Chinese subsidies are obvious in tbe country’s domestic market, and there’s no reason to copy that for the world.
China’s EV price war is killing brands and infuriating consumers
And this is just one example. Read the study, find more research, tere is a lot.of it.
Man thats a weird article trying to frame cheaper EVs as a terrible thing. Chinas EV market is by far the largest and fastest growing in the world, by a huge margin.
@blazera@lemmy.world
Did you read the articles?
Chinese EV car manufacturers are making losses, some already filed for bankrupcty, practically all survive on state subsidies. Chinese customers are left behind with no after-sales services and software updates.
basically a lot of companies attempted to get into the game but were crushed by BYD. an effect of going bankrupt early on because you didnt have enough customers is…you didnt have a lot of customers. So customers left without support are a small minority. The companies responsible for China’s massive EV growth are alive and well.
@blazera@lemmy.world
Which ones?
BYD is the one which is ‘alive’ as they live heavily on state subsidies (their subsidies have at least ten-fold since 2020).
HiPhi, once a promising start-up, Baidu-backed WM Motor, Tencent’s Aiways - all ran out of liquidity to sustain operations. Other brands such as Levdeo and Singulato entered bankruptcy proceedings.
Which ones are doing well? There are none, even the Chinese government appears to have given up on these companies as they appear to focus solely on BYD given a strong deflationary domestic market.
this just sounds fantastic to me. every country that makes EV’s should be heavily subsidizing them. You’re making capitalism look worse and worse, are you gonna go after American libraries for not being profitable enough and needing state funding?
Weve got just wildly different priorities. You say depreciation, i say more affordable. My priorities arent for rich people to make more money, i dont care that startups are falling behind, i dont care that someone bought in before a price drop. China’s ev market has “slowed down” to a growth rate that still dwarves the rest of the world, after a crazy and unsustainable gold rush.
The bottom line is more electric vehicles, less fossil fuel vehicles. Thats it, thats the goal.
Meanwhile the country I live in in Europe is stopping all tax incentives next year on EVs and the taxes might even be higher since they’re based on weight and EVs are heavier.
Best of luck: this person uses their @0x815@feddit.de and @tardigrada@beehaw.org accounts to post anti-China articles like it’s their day job. Worse, really, as they do it on the weekends, too.