OECD: China Leads Global Surge in Industrial Subsidies, Risking ‘Doping’ Distortions

The OECD warned on June 1, 2026 that government subsidies for manufacturing have climbed to levels not seen since the global financial crisis, with China emerging as the dominant provider and risking harmful market distortions. Total support for 15 key sectors reached $108 billion in 2024, according to a new OECD database. Chinese firms received three to eight times more aid than companies in member countries, far exceeding other large non-members like Brazil and India. In semiconductors, Chinese subsidies averaged nearly 10% of firm revenue in 2021-2022, compared to a global average just above 2%. The organization likened the practice to doping, estimating that subsidies fueled almost 60% of market share gains for Chinese firms between 2005 and 2023. It noted that the aid did not improve productivity or profitability, warning that unfair competition could ultimately stifle innovation and efficiency worldwide, even as it fuels trade tensions with the US and EU.