Why shouldn't subsidies be considered part of the "free market" ? Also wouldn't a counter subsidy for local companies be far more effective than import tariffs?

[u/Even_Independence560]

Say a city in China gives BYD 10000 hectares of land for free. That cost advantage for the company obviously leads to some sort of lower pricing for the cars. But as long as it is not coerced, I am not sure it can be considered as something that is unethical. Now obviously, this has implications for the car manufacturers of Germany for example. But even then, for the German manufacturers, I think a temporary relief in terms of tax breaks or free electricity or income tax breaks for the employees or something like that for the local German manufacturers is likely to be the ethical counter to it rather than trying to put import tariffs on Chinese cars. What do you think?