Since China’s entry on to the global economic stage, there has been consistent consternation among advanced economies regarding its extensive use of “non-market” policies to promote domestic industry, most particularly the use of subsidies. These run the gamut from tax breaks, to large grants, to subsidised financing through preferential equity and debt positions.

Estimates of the size of Chinese subsidies vary, but 2 per cent of Chinese GDP is not unheard-of. A study by the International Monetary Fund found that subsidies made up 95 per cent of all Chinese trade-distorting policies between 2009 and 2022. According to the Global Trade Alert, they are the largest user of subsidies by number of policy interventions.