PARIS, June 1 (Reuters) - Government subsidies to industry have reached their highest level since the global financial crisis, driven largely by China, a report from the Organisation for Economic Cooperation and Development said on Monday.
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The OECD’s Manufacturing Groups and Industrial Corporations database, known by the acronym MAGIC, tracks what firms receive as opposed to what governments say they give
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This provides an insight into opaque subsidy systems, particularly in China
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Subsidies for 15 industries covered by the OECD’s database reached $108 billion in 2024, only slightly below a peak in 2023
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As a percentage of firms’ revenue, the amount in both years was the highest since western governments provided various forms of state support in 2009 at the height of the financial crisis
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The sectors subsidised the most over 2005 to 2024 were solar panels, semiconductors, aluminium, steel and shipbuilding
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The OECD said at a conservative estimate Chinese firms received on average three to eight times more government support than firms based in the OECD between 2005 and 2024
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OECD Secretary-General Mathias Cormann told a press conference that of firms that gained market share between 2005 and 2024, subsidies explained around 22% of the gains
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That rises to nearly 60% for Chinese firms
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Subsidies have not led to meaningful gains in productivity or profitability, he said
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Officials meeting at an OECD ministerial gathering on Wednesday and Thursday will discuss ways to make global trade fairer
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