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ECONOMIC POLICY INSTITUTE • 1333 H STREET, NW SUITE 300, EAST TOWER WASHINGTON, DC 20005 202.775.8810 WWW.EPI.ORG EPI BRIEFING PAPER ECONOMIC POLICY INSTITUTE OCTOBER 8, 2009 BRIEFING PAPER #242 Executive summary In 2009, China is the largest producer of glass and glass products, has the greatest number of glass- producing enterprises, and has the largest number of oat-glass production lines in the world. Since 2003, glass production in China has more than doubled. Concurrently, production capacity in China has also doubled since 2003 and increased more than three- fold since 2000. Tis report documents the industry’s explosive growth and exports and the government subsidies that have bolstered it from 2004 to 2008. From 1987 to 2007, China’s glass output has risen, on average, by 18% annually. Along with increasing production, the Chinese glass industry experienced a three-fold increase in exports to the United States from 2000 to 2008; correspondingly, the U.S. trade decit with China on glass also tripled in the same period. In 2008, China contributed over 31% of global glass production. It has become the largest exporter of at glass and glass ber in the world. THROUGH CHINA’S LOOKING GLASS Subsidies to the Chinese Glass Industry From 2004-08 BY USHA C.V. HALEY  TABLE OF CONTENTS Executive summary.............................................................................1 Introduction ...........................................................................................2 Industry characteristics and structure ......................................4 Analysis o glass supply ....................................................................9 Analysis o glass demand.............................................................. 12 Production process and manuacturing costs o Chinese glass............................................................................... 18 Measuring subsidies to Chinese glass .................................... 24 Subsidies to China’s glass and glass products industry.......................................................... 26 Conclusions and uture directions ........................................... 30 Appendix: Defnition and measurement o variables .................................................... 33 www.epi.org

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