How dare they subsidize the green transition?!
China is subsidizing the transition away from fossil fuels which greatly accelerate climate change and if not taken seriously immediately will lead to the deaths of tens of not hundreds of millions in the next few decades. The speed at which this transition occurs is vital in saving human lives and preventing infrastructure losses previously unfathomable. Their actions towards green energy adoption both domestically and abroad are one of the few things that provide any sense of hope about a better renewable future.
On the other hand: BUT AT WHAT COST
Cool cool. Remove oil and gas subsidies and let’s see how much the true TCO is for owners (not manufacturers)
Let’s look at what the EU found after investigating two of China’s largest EV companies: BYD and Geely
Their investigators turned up subsidies everywhere they looked. Lithium processers and battery makers were told by the state to sell to EV companies below market rates, they said,
Important to note here that BYD is the leading battery maker in the world. They’re also a leading lithium processor, in fact setting up lithium processing plants as far away as Chile. BYD is notorious for vertically integrating across their entire supply chain, so at least for BYD this claim makes zero sense. Berkshire Hathaway owns 9.8% of BYD.
while the car companies were exempt from battery consumption taxes.
This refers to the 4% tax on batteries instituted in 2015. Except… “But cleaner batteries including mercury-free, nickel-hydrogen, lithium and solar cell varieties will be exempted and taxation on lead storage batteries will be postponed till Jan 1, 2016.” Is the EU perhaps referring to the lead-acid batteries that feature in BYD and Geely’s hybrid products? As far as I know those should be taxed, but maybe I’m wrong and that was in fact a tax subsidy. Either way, lithium batteries are exempt from this tax.
The firms issued green bonds that government-run financial institutions were ordered to buy,
Buying corporate bonds really is subsidization and not something you’d expect to see in free market economies.
https://www.nbim.no/en/the-fund/investments/#/2023/investments/fixed-income
Wait hold on…
and were granted concessional land, income tax breaks and cheap refinancing options mandated by the People’s Bank of China, the central bank.
Dirty, dirty subsidies!
https://goodjobsfirst.org/nevada-woos-tesla-plant-tax-deal-economic-benefits-prompt-debate/
https://www.seattletimes.com/business/tesla-gets-330m-tax-deal-for-nevada-expansion-truck-plant/
Admittedly, now I’m a little confused.
Why is Europe suddenly pretending that subsidizing critical industries is a Chinese invention?
The entire EU supply chain is subsidized.
