Government subsidies are an increasingly central issue for global trade, yet their nature and implications for international trade are still insufficiently understood. Using novel data from the OECD MAnufacturing Groups and Industrial Corporations (MAGIC) database, this column reveals that subsidies are common among major global firms across 14 key industrial sectors but typically modest relative to firm revenue, with notable exceptions. China-based companies stand out for receiving significantly larger subsidies, especially in the form of below-market borrowings, and frequently expanding their share in global markets.

Government support has long been a central issue for trade but recently countries’ interest in subsidies, and industrial policies more broadly, has intensified. Yet evidence on the nature and scale of...