For years, Indian manufacturers have argued that competing with Chinese firms is not simply a contest of productivity, tech or scale, but also one between two different economic systems in which only one provides huge state support. OECD's June MAGIC (Manufacturing Groups and Industrial Corporations) database provides evidence that this is, indeed, the case.
Covering 525 of the world's largest manufacturing firms between 2005 and 2024, the report finds Chinese manufacturers consistently receiving state support relative to revenue at levels far higher than firms in India and most OECD economies. In some cases, it exceeds those levels by as much as 500%.
