Industrial subsidies have reached their highest levels since the global financial crisis. As a percentage of firms’ sales revenue, industrial subsidies amounted to 1.3% in 2024, which was the second highest level on record after the previous peak in 2009 during the global financial crisis. Subsidies for the 15 industrial sectors covered by the OECD Manufacturing Groups and Industrial Corporations (MAGIC) database reached USD 108 billion (nominal) in 2024.
Industrial firms based in China receive more subsidies than their competitors based everywhere else. Between 2005 and 2024, Chinese firms received on average three to eight times more government support than firms based in the OECD, a conservative estimate. These subsidies were also considerably higher than the support received by firms based in non-OECD economies such as Brazil, India, and Indonesia.
Renewable energy equipment, semiconductors, and heavy industries receive relatively more subsidies than other industrial sectors. Between 2005 and 2024, the production of solar photovoltaic panels, semiconductors, aluminium, steel, and shipbuilding were – as a percentage of firms’ sales revenue – the top five recipients of subsidies across the 15 sectors covered in the OECD MAGIC database.
State enterprises play a large role as recipients and providers of subsidies. On average, state enterprises with state ownership above 25% are significantly larger recipients of industrial subsidies than their private competitors, especially for grants and below-market-borrowings. This stems partly from the fact that these companies are often found in heavy industries characterised by more debt financing and below-market-borrowings, and in China.
Industrial subsidies are shaping global markets. OECD research shows that around 22% of the global market share gains of firms that grew between 2005 and 2023 can be explained by the subsidies they received. For Chinese firms, almost 60% of their global market share gains can be explained by the subsidies received.
The OECD MAGIC database provides an unprecedented view of industrial subsidies at the level of individual firms, allowing for novel insights into the potential of industrial subsidies to influence global trade flows. The public MAGIC dashboard provides aggregate information on subsidies received by the largest firms across 15 industrial sectors from 2005‑24, tracking the evolution of grants, tax concessions, and below-market finance to firms over time and across regions.
OECD MAGIC Database of Industrial Subsidies
