Report from the Organization for Economic Cooperation and Development says the projection is still “conservative”
A report from the OECD (Organization for Economic Cooperation and Development) released on Monday (June 1, 2026) estimates that Chinese companies in the industrial sector received more subsidies than their competitors based anywhere else.
In an estimate defined as “conservative”the organization said that companies in China received, on average, 3 to 8 times more government support than companies based in OECD countries in the period from 2005 to 2024. Here is (PDF – 3 MB, in English).
Chinese subsidies were also “considerably bigger” than in countries such as Brazil, India and Indonesia. The report analyzed companies from 15 industrial sectors, such as automotive, aerospace, chemicals, heavy machinery and semiconductors.
Considering subsidies, tax exemptions and loans made below the market price, Chinese companies had an average of 2.4% as a percentage of their sales revenue in government benefits in the period analyzed. The report attributes the expansion of Chinese companies in the global market to the higher volume of subsidies they received.
“OECD research shows that around 22% of the global market share gains of companies that grew from 2005 to 2023 can be explained by the subsidies they received. For Chinese companies, almost 60% of the global market share gains can be explained by the subsidies they received”the document said.
European and Asian countries that make up the OECD received an average of less than 0.5% of their annual revenue in the form of subsidies, while OECD countries in North America recorded an average of close to 1%. Countries outside the organization averaged just above 1%.
The report highlights that, in 2024, industrial subsidies reached their highest levels since 2009. That year, the Chinese average exceeded 3% of companies’ sales revenues.
On average, industrial subsidies totaled 1.3% in 2024, the 2nd highest level on record. The benefits for the 15 industrial sectors covered by the document reached US$108 billion in 2024.
Companies that have a state shareholding above 25% received advantages “significantly larger” than private ones, especially in relation to grants and loans below market value.
The sectors that received the most help from governments were equipment for renewable energy, semiconductors and heavy industries.
