BYD, the Chinese EV giant, is poised to solidify its dominance in the electric vehicle market with a massive infusion of $3.7 billion in government funding, according to a study by Germany's Kiel Institute for the World Economy (via Bloomberg).
This substantial financial backing, which represents a sharp increase from previous years, underscores China's aggressive push to propel its green tech sectors, particularly in the realm of electric vehicles.
BYD Received Massive Chinese Government Funding
The study reveals that BYD's direct subsidies skyrocketed from €220 million in 2020 to €2.1 billion within two years. This influx of government support has enabled BYD to not only bolster its position in the domestic market but also expand its footprint globally, raising concerns among competitors and regulatory bodies alike.
Dirk Dohse, research director at the Kiel Institute and co-author of the study, emphasized the contentious nature of China's subsidy policy, stating, "China's subsidy policy has been a controversial issue for years: European industries often struggle to compete with Chinese counterparts on price."
This sentiment reflects the growing unease within European markets, where concerns about unfair competition from Chinese companies have reached new heights.
EU Looks Into Burgeoning Chinese EV Industry
Moreover, the European Union has launched a formal investigation into the 'stacked' Chinese EV industry, citing allegations of unfair subsidies and bank lending campaigns from Beijing.
The investigation, which targets prominent Chinese companies, including BYD, aims to address the influx of cheap, high-tech imports flooding European markets, posing a significant challenge to local manufacturers.
Meanwhile, the Biden administration's stance on Chinese-made electric vehicles in the US remains a topic of debate, with mounting pressure to implement restrictions.
However, the administration's recent move to permit over 25GW of clean energy on public lands, surpassing the 2025 renewable energy goal, highlights its commitment to advancing sustainability efforts domestically.
As BYD continues to receive substantial government funding, its dominance in the global electric vehicle market seems increasingly assured.
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