In a groundbreaking analysis, the Center for Strategic and International Studies has uncovered that the Chinese government has invested a staggering 215 billion euros in subsidies for electric vehicle manufacturers from 2009 to 2023.
Surprisingly, the bulk of these subsidies were granted in more recent years. The think tank reveals that only 6.3 billion euros were allocated between 2009 and 2017, but this amount tripled from 2018 to 2020, and spiked dramatically during the COVID-19 pandemic.
These estimates highlight the diversified support that the Chinese government provides for electric vehicles, including tax discounts, funding for infrastructure, and direct purchases of electric vehicles. Moreover, substantial funding is also allocated for research and development programs of automotive manufacturers.
The scale of support has significantly increased in recent years, with 4.3 billion dollars being allocated just last year for R&D programs. However, these figures are considered “conservative” by the Center for Strategic and International Studies as they do not encompass all government aid, such as local incentives and subsidies for automotive industry suppliers.