Wall Street Journal reports a jump in industrial subsidies for Chinese manufacturers

Posted by scapozzola on 06/25/2013

According to the Wall Street Journal's Dinny McMahon, manufacturers in China (in industrial sectors ranging from aircraft to steel to consumer appliances) are gaining more subsidies from the Chinese government:

Companies listed on China's stock exchanges received 85.68 billion yuan ($13.83 billion) in government subsidies last year, up 23% from a year earlier, while corporate profits rose less than 1%, according to a Chinese data provider. The subsidies were equivalent to more than 4% of the companies' total profits last year, up from around 3% between 2009 and 2011.

The subsidies—largely from local authorities but also from the national government—took the form of cheap land, tax rebates, support for loan repayments and straight-up cash. There were a range of reasons, including research and development and support for government environment priorities.

Read more.

Related recent Blogs

@KeepitMadeinUSA on Twitter

  • ICYMI: Senate passed its version of Highway Trust Fund bill; shortened length of extension to Dec. instead of May 2015. Heads back to House. 57 min 42 sec ago
  • The Senate is now debating legislation to reauthorize the Highway Trust Fund (well, until May 2015). Watch on @cspan: http://t.co/7h65biQlFz 4 hours 49 min ago
  • RT @SteveRattner: Amazing shift in US jobs -- gone from making things to taking care of sick people http://t.co/44ZBilZiCg 5 hours 46 min ago
  • We must be close to election season. Candidates are talking a big game about unfair trade on the campaign trail: http://t.co/vsahfLZSb4 8 hours 10 min ago
  • Looks like @amazon is getting into the 3D printing business. http://t.co/dHa0askSK9 9 hours 33 min ago
  • RT @WisconsinOven: MT @KeepitMadeinUSA @ScottPaulAAM shares ideas in @HuffingtonPost on how to restore American manufacturing leadership:ht… 10 hours 18 min ago
  • BTW, ALL the machines at that Indianapolis Adidas plant helped produce LeBron jerseys. http://t.co/InVSaeooRv Plus more in Iowa & Cleveland. 10 hours 18 min ago
  • !!! RT @darrenrovell The LeBron jersey assembly line at Adidas facility in Indianapolis http://t.co/FCcJz76kpa 10 hours 21 min ago
  • Wisconsin companies are going on a national tour to promote American manufacturing: http://t.co/r08lzCvW83 11 hours 9 min ago
  • This --> http://t.co/JEuzlRwYjr @USAToday examines the myth of the STEM workers shortage. 1 day 6 hours ago