China Disputes OECD Report on Industrial Subsidies Amid EU Trade Tensions

On June 1, 2026, the OECD published a report indicating that China's industrial subsidies reached 1.3% of companies' turnover, totaling $108 billion in 2024. The report claims that Chinese firms received significantly more support than their global competitors, distorting market competition. In response, China rejected the report as 'one-sided' on June 4, arguing that it misrepresents the role of government subsidies in their firms' success. The Chinese Ministry of Commerce criticized the OECD's definitions and emphasized the competitive advantages of Chinese companies, such as economies of scale and technological advancements. This dispute occurs as the EU considers new trade policies regarding Chinese imports, with China threatening countermeasures. The OECD's report has intensified existing trade tensions between China and the EU, particularly in strategic sectors like technology.

Key Points: • OECD report reveals China's industrial subsidies reached $108 billion in 2024. • China rejects the OECD's findings, labeling them as biased and inaccurate. • The dispute highlights ongoing trade tensions between China and the EU.