A humanoid robot of PaXini, a haptic technology and humanoid robotics company, demonstrates its package gripping ability at the World Intelligence Expo 2026 in Tianjin, north China, May 28, 2026. (Xinhua/Sun Fanyue)

BEIJING, June 6 (Xinhua) -- A report from the Organization for Economic Cooperation and Development (OECD) is wrong on the issue of subsidies when it claims that Chinese firms gain market advantage through subsidies.

The reasons are evident: First, subsidies are a policy tool commonly used by various economies, including OECD members; Second, the report overlooked the genuine core advantages of Chinese enterprises, such as economies of scale, production efficiency, and technological upgrading.

Such a report is detrimental to economies endeavoring to become more prosperous as it failed to find the real factors driving economic prosperity.

The report by OECD said from 2005 to 2023, almost 60 percent of global market share gains of Chinese firms was due to subsidies they had received.

Actually, China's industrial strength is underpinned by its comprehensive industrial and supply chains, sustained investment in R&D, and improved capacity for industrial upgrading and integration, besides many other factors.

At present, nearly 40 percent of the global "Lighthouse Factories" recognized by the World Economic Forum are located in China. These factories are at the forefront of the world in applying Fourth Industrial Revolution technologies to enhance productivity and sustainability.

The surging number of patents, rapid technological iteration, and superior cost-performance advantages also contributed to the success of Chinese companies. For instance, China's electricity price is much lower than that in European countries.

It must be noted that OECD members also provide large amounts of subsidies to support industrial growth of various sectors.

According to incomplete statistics, the European Union will provide various subsidies totaling 1.44 trillion euros (1.67 trillion U.S. dollars) from 2021 to 2030. By 2024, more than 300 billion euros of subsidies had been distributed.

Industrial subsidies are commonly used worldwide. What matters is whether they comply with WTO rules. China's industrial subsidy policy is based on openness, fairness, and compliance, and strictly within WTO rules.

To enhance the competitive power of their economies, some countries should reflect more on their internal problems rather than scapegoating others. Anyway, there's no such thing as gaining long-term competitive edge through providing subsidies.