TOKYO — China is ramping up its use of tax rebates and other “stealth” subsidies for electric vehicles and other strategic businesses in an effort to gain a competitive edge in global markets, many experts say. Annual total tax breaks to major Chinese mainland companies will increase by 400% over the decade to 2023, boosting their exports to the US and Europe.
The concessions come on top of significant direct subsidies to key industries from the government of Chinese President Xi Jinping.