People love to complain about how China provides massive state subsidies to its domestic manufacturers, as if the US, the EU, and Japan do not. Whether is it a zillion tax breaks for corporations or forgiveness of local property taxes, the last thing any business in the west wants is a level playing field. In the US, if your business is big enough and employs a lot of people, the government will shovel truck loads of public funds your way if your business is about to fail.

What most people conveniently ignore is that, while China may offer a large helping of government assistance to help entrepreneurs got new businesses off the ground, it slowly and carefully reduces those benefits over time. In the end, China is much more closely aligned with the principles of capitalism than many so-called “first world” countries. It’s almost like it is the adult in the room, while governments of supposedly capitalist countries run around making policies as if their hair was on fire.

According to cnevpost , the Chinese government this week announced it will reduce the VAT tax rebate on exported electric and plug-in hybrid cars, buses, and trucks from 13 percent to 9 percent starting on April 1, 2027. As of now, Chinese manufacturers of those vehicles are not required to pay the full value added tax on the vehicles they produce for export. Things are tough in China’s domestic new car market, with sales down significantly this year, so reducing the tax burden on exports was a way of encouraging automakers to send some of the cars, buses, and trucks they produce to foreign markets.

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