Li says Chinese firms' strength comes from technology, not subsidies
2026-06-24
Chinese firms' competitiveness
Chinese Premier Li Qiang said in a speech at the Summer Davos meeting in Dalian, Liaoning province, on the 24th that the product competitiveness of Chinese companies stems from scientific and technological progress, not from government subsidies. In Europe and the United States, critics have said China's massive subsidies distort technological development and product competition through support for companies.
Li said the rapid growth of industries linked to new energy vehicles, including electric vehicles, has been driven by advances in new materials, batteries and communications technology, arguing that 'this is the key to the competitiveness of Chinese products'. He also rejected the view that 'the competitiveness of Chinese products relies mainly on subsidies from the Chinese government', saying jokingly, 'The Chinese government is not that rich. We cannot afford to pay that much either', prompting laughter in the hall.
Rebutting subsidy criticism
Politicians and business leaders from more than 90 countries are taking part in this year's Summer Davos, and Li used the event as an opportunity to respond to criticism of subsidies. It is customary for China's premier to speak at Summer Davos, and in 2019 then-Premier Li Keqiang announced plans to bring forward the removal of foreign investment restrictions in the securities and life insurance sectors.
This time, rather than unveiling new economic policies, Li's remarks focused on highlighting the strength of Chinese companies. In his speech, he also referred to individual private companies including Huawei Technologies and Unitree Robotics, a start-up developing humanoid robots.
The meeting, jointly hosted by the World Economic Forum and the Chinese government, began in 2007. After an interruption due to the COVID-19 pandemic, this year's event is its 17th edition, with more than 1,700 participants from around the world attending under the theme of 'Entrepreneurship for a New Era'. The three-day event runs from the 23rd.
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