OECD Report Says Chinese Firms Receive Most Subsidies; China Refutes Claim as 'One-Sided and Arbitrary'
An OECD report indicates that between 2005 and 2024, Chinese companies received significantly more government subsidies in 15 key industries than their foreign competitors, creating an unfair advantage. China's Ministry of Commerce responded on the 4th, criticizing the report for imprecise concept definitions, biased sample selection, and one-sided, arbitrary conclusions, while emphasizing that China's subsidy policies comply with WTO rules.
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- 📰 Published: June 4, 2026 at 15:47
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(Central News Agency, Taipei, June 4) The Organisation for Economic Co-operation and Development (OECD) recently released a report on industrial subsidies, stating that Chinese companies receive the most subsidies compared to their foreign competitors. China's Ministry of Commerce responded today, stating that the OECD report has imprecise concept definitions, biased sample selection, and one-sided, arbitrary conclusions.
The report, released by the OECD on the 1st, shows that between 2005 and 2024, China's 15 key industrial sectors received significantly higher state subsidies than their foreign competitors, creating an unfair competitive advantage for the latter. In response, China's Ministry of Commerce issued a statement on its official website in a "Q&A with reporters" format today.
A spokesperson for China's Ministry of Commerce stated that subsidies are a common policy tool used by all economies, including OECD members. China expressed its willingness to actively participate in international discussions on industrial subsidy rules.
The spokesperson pointed out that China's industrial subsidy policies strictly comply with World Trade Organization (WTO) rules and earnestly fulfill transparency obligations. "China believes that the report released by the OECD has imprecise concept definitions, biased sample selection, and one-sided, arbitrary conclusions," the spokesperson said.
The Ministry of Commerce also stated that the so-called 'subsidies' in the report lack unified measurement standards and statistical calibers, deviating from the consensus of multilateral frameworks such as the WTO. Furthermore, it added that the report attributes the increase in Chinese companies' global market share solely to government subsidies, completely ignoring the true core advantages of Chinese companies in areas such as economies of scale, production efficiency, and technological iteration.
According to the OECD report cited by AFP, during the period from 2005 to 2024, "the average amount of government support received by Chinese companies was 3 to 8 times that of companies in the same industry in OECD member countries, and this is a conservative estimate."
The report noted that government support includes direct subsidies, tax reductions, and preferential loan interest rates provided by banks and public financial institutions, sometimes even below benchmark lending rates.
The OECD emphasized that "60% of the growth in Chinese companies' global market share benefited from subsidies." (Editor: Zhou Huiying / Chen Kaiyu) 1150604
The report, released by the OECD on the 1st, shows that between 2005 and 2024, China's 15 key industrial sectors received significantly higher state subsidies than their foreign competitors, creating an unfair competitive advantage for the latter. In response, China's Ministry of Commerce issued a statement on its official website in a "Q&A with reporters" format today.
A spokesperson for China's Ministry of Commerce stated that subsidies are a common policy tool used by all economies, including OECD members. China expressed its willingness to actively participate in international discussions on industrial subsidy rules.
The spokesperson pointed out that China's industrial subsidy policies strictly comply with World Trade Organization (WTO) rules and earnestly fulfill transparency obligations. "China believes that the report released by the OECD has imprecise concept definitions, biased sample selection, and one-sided, arbitrary conclusions," the spokesperson said.
The Ministry of Commerce also stated that the so-called 'subsidies' in the report lack unified measurement standards and statistical calibers, deviating from the consensus of multilateral frameworks such as the WTO. Furthermore, it added that the report attributes the increase in Chinese companies' global market share solely to government subsidies, completely ignoring the true core advantages of Chinese companies in areas such as economies of scale, production efficiency, and technological iteration.
According to the OECD report cited by AFP, during the period from 2005 to 2024, "the average amount of government support received by Chinese companies was 3 to 8 times that of companies in the same industry in OECD member countries, and this is a conservative estimate."
The report noted that government support includes direct subsidies, tax reductions, and preferential loan interest rates provided by banks and public financial institutions, sometimes even below benchmark lending rates.
The OECD emphasized that "60% of the growth in Chinese companies' global market share benefited from subsidies." (Editor: Zhou Huiying / Chen Kaiyu) 1150604