Key facts
- Government subsidies to industry are at their highest level since the global financial crisis.
- China is largely driving the increase in global subsidies.
- Chinese firms received three to eight times more government support than OECD-based firms between 2005 and 2024.
- Subsidies explained approximately 60% of market share gains for Chinese firms between 2005 and 2024.
- The most subsidized sectors globally were solar panels, semiconductors, aluminum, steel, and shipbuilding.
The Organisation for Economic Co-operation and Development (OECD) has released findings indicating that a substantial portion of China's global market share expansion over the last twenty years is directly linked to extensive government subsidies provided to its domestic companies. This level of support far exceeds that given to businesses in competing nations, potentially distorting global markets and reaching levels not seen since the 2009 financial crisis.