The Nikkei, Japan’s largest financial newspaper, reported that, in 2018, China’s government subsidies to companies had reached 156 billion yuan (US $22.4 billion), about five percent of the net profit of all publicly traded companies in China. That subsidy amount doubled from the amount five years earlier in 2013.
Government subsidies in the first nine months of 2019 increased 15 percent from the same period a year ago. Out of the 3,748 companies that were included in the statistical calculations, 3,544 companies (over 90 percent of the total base) have received government subsidies.
Sinopec received the largest amount of subsidies, followed by Guangzhou Automobile Group, and then Shanghai Automobile Group. Among the top ten most subsidized companies, four are auto makers. Several electronic companies are also in the top ten list, including BOE Technology Group (#4), TCL Group (#6), and Gree Electric (#7).
Source: The Nikkei, December 27, 2019