Subsidies to industry have reached their highest levels since global financial crisis of 2008. That is the conclusion of a report by the Organisation for Economic Co-operation and Development (OECD) that was published on Monday 1 June.
In 2024, the total amount of subsidies granted to 15 key sectors reached 1.3% of companies’ turnover, or $108 billion, the report says. And while the level of subsidies increased in most OECD regions, “Chinese companies continued to receive significantly greater support than their competitors elsewhere in the world between 2005 and 2024”, which is three to eight times more on average.
The organisation has adopted a notably different tone by explicitly identifying one country as responsible for distortions of competition: China. “Large and persistent industrial subsidies can distort global markets, thereby creating unfair competitive advantages and contributing to excess production capacity”, said OECD Secretary-General Mathias Cormann.
This report is being published at a time when Europeans are planning to ‘reset’ their economic relations with Beijing (see EUROPE 13877/30). Following a policy debate at the European Commission, China threatened on 30 May to take countermeasures if the EU restricted imports of Chinese products.
Read the OECD report: https://aeur.eu/f/m4x (Original version in French by Juliette Verdes)