China’s BYD Co. received at least €3.4 billion in direct government subsidies as part of Beijing’s push to dominate electric vehicles and other clean technologies, according to a new study.
Subsidies like those handed to BYD “have allowed Chinese firms to scale up rapidly, to dominate the Chinese market, and to facilitate increasing expansion into EU markets,” said the institute, which advises the German government. Elektroauto-Hersteller BYD ist einer der größten Profiteure der massiven staatlichen Subventionen, die #China in grüne Technologien steckt.
The EU has set up a €40 billion innovation fund to compete with China and subsidies earmarked in the U.S. Inflation Reduction Act. In October, the European Commission launched a probe into whether Chinese aid for companies including BYD, SAIC and Geely had given the country’s industry an unfair advantage. Initial tariffs could come as early as July.
German Chancellor Olaf Scholz’s trip to China in the coming week represents an “excellent opportunity,” to negotiate with Beijing about its subsidies, said Dirk Dohse, one of the report’s co-authors.