Subsidies are widely used by different levels of government in China to aid economic development, but they are a long-standing source of tension with the West

China’s extensive use of industrial subsidies has long been criticised by Western nations who say it creates an unfair playing field for foreign firms operating in the world’s No 2 economy.

The massive amount of money granted to certain sectors and corporations is likely to be a central issue in any further trade talks between Beijing and Washington, which appear to have stalled despite the expiry of the phase-one trade deal.

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