Massive Chinese industrial subsidies highlighted by the OECD

Monday 01 June 2026 - 11:45

The Organisation for Economic Co-operation and Development (OECD) has revealed the significant scale of state support granted to certain industrial sectors in China, raising concerns about global market distortions and unfair competition.

According to an OECD report based on data collected between 2005 and 2024, Chinese companies received on average between three and eight times more public support than firms based in the 38 OECD member countries. This advantage has contributed to the strong expansion of Chinese manufacturers in global markets.

The study highlights that China’s industrial policy has played a major role in boosting key sectors such as batteries, solar panels, automobiles, steel, and semiconductors. These industries are considered strategic, as they directly influence energy transition and technological development worldwide.

The OECD’s analysis is based on a large dataset known as “MAGIC” (Manufacturing Groups and Industrial Corporations), which compiles financial information from major global companies across fifteen industrial sectors. These include aerospace, automotive, chemicals, shipbuilding, telecommunications equipment, and renewable energy industries.

The organization notes that global industrial subsidies reached around 108 billion US dollars in 2024, the highest level recorded since the 2008 financial crisis. It also warns that without coordinated international action, governments may continue to “overpay” for industrial support without achieving the intended goals of competitiveness and economic resilience.

Experts cited in the report stress that these distortions could worsen trade tensions and create long-term imbalances in global manufacturing.