The Chinese Government has doubled its financial support to auto manufacturers last year

The Chinese Government has doubled its financial support to auto manufacturers last year

China ' s market for electric vehicles, as noted earlier, is subject to extensive public subsidies, but in recent years the sector ' s support has not been weakened, even in the face of a decline in direct compensation to citizens for the purchase of electric vehicles, investment subsidies being used by the SMIC chip manufacturer and the world ' s largest motor battery manufacturer, CATL.

According to Nikkei Asian Review, China 2025 was originally launched in 2015 to achieve a decent level of import substitution in a decade, and by the centennial anniversary of the founding of the PRC in 1949, to turn the country into the world's largest industrial power. The Fitch Agency, as noted by a Japanese source, collected information on the receipt of government subsidies to 5,000 Chinese companies last year to identify the sectors to which the PRC authorities are most inclined.

The most interesting thing is that the leader of the grants received in 2021 was the SAIC Motor, to which the Chinese authorities contributed $598 million, which is 31% higher than the previous year's grants. The China Petroleum & Chemical, as well as the Sinopec, which led over many years, took second place last year. The third largest company in China was SMIC, which is the largest contract producer of semiconductor products. It became known the other day that since July 2021 it has supplied 7-Nm products to customers, although it does not have the equipment to produce chips with a standard of less than 10 nm. The U.S. authorities in Donald Trump have made sure that the relevant technological equipment does not reach China from anywhere in the world.

Of course, SMIC remains the flagship of the Chinese semiconductor industry, so the authorities spare no money to support this company. The fourth spot in the Fitch rating was the BYD company, which simultaneously manufactures both traction batteries and electric vehicles. The Toyota Motor Corporation even chose it as a partner in the Chinese electric car market.

The second five was discovered by the Great Wall Motor manufacturer, who also focused on electric vehicles, and the seventh was the manufacturer of the BOE Technology display. The eighth was the JAC brand, under which most commercial vehicles are produced. Government subsidies are likely to help JAC accelerate the development of light electric trucks. China Mobile was the ninth largest supplier of traction batteries, and CATL was the eleventh largest supplier of traction batteries among the largest recipients of Chinese government subsidies. The target funding from the State in this case has increased by 2.6 times in the last three years.

An intrigued 13th place on the list was taken by Taiwan Foxconn's subsidiary, so from a political point of view such prioritization may raise questions, especially since experts talk about the intentions of the Chinese authorities to monitor the allocation of subsidies more closely, and preference will henceforth be given to those Chinese companies that invest more in development and research in priority areas from the State's point of view.