Yes, but those are two separate things. Lower Saxony owning part of VW doesn’t mean VW gets extra public money because of it.
High subsidy rates alter market dynamics. Can we agree on that?
Yes, but those are two separate things. Lower Saxony owning part of VW doesn’t mean VW gets extra public money because of it.
High subsidy rates alter market dynamics. Can we agree on that?
Subsidies to manufacturers in Germany are much smaller than both: subsidies to consumers in Germany, and subsidies to manufacturers in China.
So, there are different subsidy types with different subsidy rates which all impact the market. Higher rates usually have a higher impact, but type of subsidy can also change what kind of an impact they have. Any comparison quickly becomes complex.
I posted some numbers in an other post [0], but the numbers are not exact.
Subsidy is also one of many factors. Of course you also need capable people and manufacturing capabilities which China has. So, subsidy alone is not enough, but if needed capabilities exist, subsidy at high rates can help tip the scales.