Q: On June 1, the OECD released a report on industrial subsidies, stating that Chinese enterprises have received the most subsidies. What is MOFCOM’s comment on this?

A: Subsidies are a common policy tool used by various economies, including OECD members. China is ready to actively participate in discussions on international rules on industrial subsidies.

China’s industrial subsidy policies strictly comply with WTO rules, and China has duly fulfilled its transparency obligations. China believes that the report released by the OECD contains loose definitions of relevant concepts, biased sampling, and one-sided and arbitrary findings. The so-called “subsidies” in the report lack a generally accepted measurement, and are detached from the consensus of the WTO and other multilateral frameworks. The report attributes the increase in Chinese enterprises’ global market share solely to government subsidies, while completely overlooking the genuine core strengths of Chinese enterprises in areas such as economies of scale, production efficiency, and technological iteration.

We urge the OECD to conduct its research in an objective and neutral manner, extensively soliciting the views of all relevant stakeholders, and using comprehensive, accurate and authoritative data to reflect the actual conditions of industrial development and policy practices, and avoid politicizing or instrumentalizing its research reports, which would undermine its own credibility. (Released on June 4)