by Chinese manufacturers receive billions in subsidies
Chinese companies such as CATL, BYD, SAIC, and GWM receive significant government subsidies, enabling them to rapidly develop in the electric vehicle sector. For example, in the first half of 2024, CATL, the world leader in electric vehicle battery production, received approximately $532 million in government support. This is even more than the state oil company Sinopec received for the entire year.
In 2023, CATL received $793 million in subsidies, and in 2024, this amount likely increased significantly. But CATL is not the only one benefiting from such support. BYD received around $527 million, while GWM and SAIC received $416 million and $277 million, respectively.
“Chinese manufacturers have been able to outpace competitors and simultaneously lower prices due to massive government support.”
These subsidies explain why Chinese brands have progressed so quickly in the electric vehicle industry. Western manufacturers, such as Tesla, find themselves at a disadvantage as they have to compete with companies receiving billions in government investments. This has caused outrage in the EU and the US, where such conditions are seen as creating an uneven playing field for businesses.
Subsidies allow Chinese companies not only to invest in new technologies but also to rapidly expand their product lines. For example, BYD releases new electric vehicles far more frequently than its Western competitors. This demonstrates that government support plays a key role in the global race for leadership in ‘green’ technologies.
