A new analysis by the Center for Strategic and International Studies has revealed that the Chinese government has spent an astonishing 215 billion euros on subsidies for electric vehicle manufacturing companies between 2009 and 2023.
It’s not surprising that most of these subsidies have been allocated recently. The think tank estimates that only 6.3 billion euros was spent between 2009 and 2017. However, this amount roughly tripled from 2018 to 2020, and during the outbreak of the COVID-19 pandemic, subsidies increased nearly tenfold.
Although these figures are estimates, the Center for Strategic and International Studies noted that the Chinese government subsidizes electric vehicles in various ways. This includes ”tax discounts” or complete tax exemptions, as well as funding for infrastructure.
Additionally, the government itself purchases electric vehicles and supports automotive manufacturers’ research and development programs.
The level of support varies, but in recent years, the government has significantly increased allocations for electric vehicle research and development programs. Between 2009 and 2017, only 2 billion dollars was spent. This jumped to 3.6 billion dollars in 2018 and rose to 4.3 billion dollars just last year.
The Center for Strategic and International Studies claims that their estimates are “very conservative” and do not even include all government support. Local incentives, gifted land for factory construction, electricity discounts, and subsidies for automotive industry suppliers are not included.
