TOKYO — China is ramping up its use of tax refunds and other “hidden” subsidies for electric vehicles and other strategic businesses in an effort to give them a competitive edge in world markets, according to many experts. China’s total annual tax rebates to major mainland companies rose 400% over the decade up to 2023, fueling their export to the U.S. and Europe.
The rebates come on top of substantial direct subsidies that the government of Chinese President Xi Jinping allocates to key industries.
