Industrial subsidies in China increase by 23%

China-listed companies last year received RMB85.7 billion (US$13.8 billion) in government subsidies, a 23% increase on the year before, The Wall Street Journal reported, citing a Chinese data provider. Companies’ profits were up less than 1%, with subsidies comprising more than 4% of corporate profits last year. The growing reliance on government handouts, particularly in China’s industrial sector, underscores Chinese industries struggling with global overcapacity and weakening demand for exports. The sharp increase in government support came amid trade rows between Beijing and the EU, and US complaints against Chinese subsidies.