OECD data shows China state subsidies far exceed rivals
China’s industrial firms receive significantly higher state support than their global competitors, according to a new OECD database covering 15 key manufacturing sectors over the period from 2005 to 2024. The analysis tracks 525 of the world’s largest manufacturing groups and finds that Chinese companies benefited from three to eight times more public subsidies than firms in other OECD economies.
The dataset indicates that around 60 percent of China’s global market share gains in the covered sectors over the past two decades can be linked to state support. Across all firms that expanded their global presence during the same period, roughly 22 percent of market share growth is associated with government backing. The findings suggest a strong correlation between subsidy intensity and international competitiveness in manufacturing industries.
Total subsidies across the 15 sectors reached 108 billion dollars in 2024, representing 1.3 percent of corporate revenue. This level ranks as the second highest on record, behind only the peak seen during the 2008 to 2009 financial crisis. The most heavily supported industries relative to revenue include solar photovoltaic panels, semiconductors, steel, aluminium and shipbuilding, all sectors central to global industrial competition.
The report also finds no clear link between subsidies and improved productivity or profitability. Instead, the data suggests that public support mainly drives expansion and market share gains rather than efficiency improvements. Companies with state ownership above 25 percent received substantially higher levels of support, including direct subsidies and below-market loans. OECD officials warned that persistent industrial subsidies risk distorting global markets, creating unfair advantages and contributing to excess production capacity.
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