G/SCM/N/386/CHN  
1 April 2022 
(22-2667) Page: 1/12 
Committee on Subsidies and  
Countervailing Measures  Original:  English  
 
  
SEMI -ANNUAL REPORT UNDER ARTICLE 25.11  
OF THE AGREEMENT  
CHINA 
Reproduced herewith is the semi -annual report for the period 1 July -31 December 2021 from China . 
 
_______________  
 
   
  G/SCM/N/386/CHN  
- 2 - 
 
Reporting Member: CHINA1 
SEMI -ANNUAL REPORT OF COUNTERVAILING DUTY ACTIONS2 
FOR THE PERIOD 1 JULY -31 DECEMBER 2021  
Original Investigations  
Country or 
customs 
territory  Product  Initiation  Provisional 
measures and 
preliminary  
determinations  Final measures  No final 
measures/ 
termination  Other  Trade data  
(from published 
report(s))  Countervailed programme(s)  
Definitive 
duty Undertaking  
 Description;  
HS 6-digit 
category covering 
investigated 
product3; 
ID number;  
(*) if 
investigation  
of >1 country  Date;  
period of 
investigation  
(S-subsidization;  
I-injury)  Date of 
measures; range 
of individual 
amounts of 
subsidy;  
"other" rates; 
[range of applied 
rates if different, 
reason]  Date of 
duties; 
range of 
individual 
amounts of 
subsidy;  
"other" 
rates; 
[range of 
applied rates 
if different, 
reason]  Date of 
application; 
range of 
individual 
amount s of 
subsidy  
or minimum 
prices  Date,  
reason  Date,  
explanation  Import 
volume or 
value 
(units/  
currency); 
product 
coverage, 
period, if 
different 
from cols. 
2/3 Import 
volume as % 
of apparent 
domestic 
consumption 
or as % of 
total imports  Name(s) of the subsid y 
programme(s) countervailed  
1 2 3 4 5 6 7 8 9 10 11 
United 
States  Polyphenylene 
ether  
39072090  
ID: 20 -0001 14.08.2020 
S: 01.2019 -
12.2019  
I: 01.2017-
12.2019  15.10.2021  
17.7%  
All others:17.7%  - - - Investigation 
time limit 
extended to 
14.02.2022  
Gazette 2021 
No.18,  
23.07.2021  21,848 tons  
(01.2019-
12.2019)  15.18% of 
apparent 
domestic 
consumption  1. Upstream Subsidies  
(a) Upstream subsidy programs 
provided by the federal government: 
Innovative Technology Loan 
Guarantee Program; Fossil Energy 
Research and Development; 
Expensing of Intangible Drilling 
Costs/Expensing Exploration and 
Development Costs for Oil, Gas and 
other Fuels; Percentage Depletion for 
Oil and Natural Gas Wells/Excess of 
Percentage over Cost Depletion for 
Oil, Gas and other Fuels; Two Year 
Amortization Period for Geological 
and Geophysical Expenditures;  
 
1 Website address where published reports on investigations are available: http://gpj.mofcom.gov.cn . 
2 All terms and column headings used in this format have the meanings assigned to them in the instructions.  
3 For reference purposes only.    
  G/SCM/N/386/CHN  
- 3 - 
 
1 2 3 4 5 6 7 8 9 10 11 
United 
States 
(Cont'd)           Percentage Depletion for Hard 
Mineral Fossil Fuels; Expensing of 
Exploration and Development Costs 
for Hard Mineral Fuels; Enhanced Oil 
Recovery Credit; Corporate Income 
Tax Exemption for Fossil Fuel Publicly 
Traded Partnerships.  
(b) Upstream subsidy programs 
provided by local governments: LNG 
Storage Facility Credit; Gross Value 
Reduction; Oil and Gas Industry 
Service Expenditures Credit; In -State 
Refinery Tax Credit; Qualified Capital 
Expenditure Credit; Development  
Credit for Small Producers and New 
Areas; Alternative Credit for 
Exploration; Percentage Depletion of 
Mineral and other Resources; 
Severance -Tax Exemption for 
Stripper Wells/Severance -Tax 
Reductions for Low -Volume Wells; 
Severance -Tax Oil and Gas Ad 
valorem Credit; Severance -Tax 
Exemption for Low -Volume Oil -Shale 
Production; Reduced Value for 
Certain Mineral Properties; Sales -Tax 
Exclusion for Installation of Board 
Roads in Oil -Fields; Sales Tax 
Exclusion on Drilling Rigs/Sales Tax 
Exemption for Repairs an d Materials 
Used on Drilling Rigs; Excess of 
Percentage over Cost Depletion; 
Natural Gas Severance Tax 
Suspension for Horizontal Wells; 
Natural Gas Severance Tax 
Suspension for Inactive Wells; 
Natural Gas Severance Tax 
Suspension for Deep Wells; Reduced 
Severance Tax on Incapable Oil Well 
Gas; Reduced Severance Tax on 
Incapable Gas Well Gas; Oil 
Deduction Severance Tax on 
Transportation Fees; Severance Tax 
Suspension on Oil from Horizontal 
Wells; Severance Tax Suspension on 
Oil from Inactive Wells; Severanc e 
Tax Suspension on Oil from Deep 
Wells; Severance Tax Suspension on 
Oil from Tertiary Recovery; Reduced 
Severance Tax Rate on Incapable Oil 
Wells;    
  G/SCM/N/386/CHN  
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1 2 3 4 5 6 7 8 9 10 11 
United 
States 
(Cont'd)           Reduced Severance Tax Rate on Oil 
from Stripper Wells; Severance Tax 
Exclusion on Flared or Vented Natural 
Gas; Severance Tax Exclusion for 
Natural Gas Used in Field Operations; 
Gas Gross Production Tax 
Exemptions and Oil Extraction Tax 
Exemptions/Reduced Tax Rate for 
Certain Wells Outside the Bakken and 
Three Forks Region; Sales Tax 
Exemption for Oil/Sales Tax 
Exemption for CO2 Used for 
Enhanced Oil Recovery/Sales Tax 
Exemption for Natural Gas; Sales Tax 
Exemption for Electricity Used in 
Enhanced Oil Recov ery; Cost of 
Complying with Sulphur Regulations; 
Full Expensing of Capital Investments 
in Qualified New Refinery Capacity; 
Gross Production Tax Rebate for Re -
established Production; Gross 
Production Tax Rebate for Production 
Enhancement/Enhanced Oil Recove ry 
Deduction; Realty -Transfer Tax 
Exemption for Resource Leases; 
Sales Tax Exemption for Oil and Gas 
Equipment; Severance Tax 
Exemptions for Crude Oil and Natural 
Gas/Texas Shale Gas Production Tax 
Relief; Sales -Tax Exemption for 
Transporting Drilling Rigs /Sales -Tax 
Exemption for Certain Well 
Services/Sales -Tax Exemption for 
CO2 Used in Tertiary Production.  
2. Direct subsidies  
Program of low -price power supply 
by the U.S. Government; Program of 
low-price water supply by the U.S. 
Government.    
  G/SCM/N/386/CHN  
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1 2 3 4 5 6 7 8 9 10 11 
United 
States 
(Cont'd)  Certain monoalkyl 
ethers of ethylene 
glycol  and 
propylene glycol  
29094400, 
29094990  
ID: 20 -0003 14.09.2020 
S: 01.2019-
12.2019 
I: 01.2016-
12.2019 18.09.2021  
16.8%  
All others:16.8%  
Affirmative 
preliminary 
determination, 
but no 
provisional 
measures applied  - - - Investigation 
time limit 
extended to 
14.03.2022  
Gazette 2021 
No.20,  
27.08.2021  30,507 tons  
(01.2019-
12.2019)  18.29% of 
apparent 
domestic 
consumption  Upstream Subsidies:  
Federal  
1. Expensing of Intangible Drilling 
Costs  
2. Percentage Depletion for Oil and 
Natural Gas Wells  
3. Two Year Amortization Period for 
Geological & Geophysical 
Expenditures  
4. Percentage Depletion for Hard 
Mineral Fossil Fuels  
5. Deduction for Tertiary Injectants  
6. Exception to Passive Loss 
Limitation for Working Interests in Oil 
and Natural Gas Properties  
7. Enhanced Oil Recovery Credit  
8. Corporate Income Tax Exemption 
for Fossil Fuel Publicly Traded 
Partnerships  
9. Natural gas distribution pipelines 
treated as 15 -year property  
States  
Alaska  
1. LNG Storage Facility Credit  
2. Gross Value Reduction  
3. Oil and Gas Industry Service 
Expenditures Credit  
4. In-State Refinery Tax Credit  
5. Qualified Capital Expenditure 
Credit  
6. Development Credit for Small 
Producers and  New Areas  
7. Alternative Credit for Exploration 
8. Taxable Per Barrel Credit  
California  
1. Percentage Depletion of Mineral 
and Other Resources  
Colorado  
1. Severance -Tax Exemption for 
Stripper Wells/Severance -Tax 
Reductions for Low -Volume Wells  
2. Severanc e-Tax Oil and Gas Ad 
Valorem Credit  
3. Severance -Tax Exemption for 
Low-Volume Oil -Shale Production  
4. Reduced Value for Certain Mineral 
Properties    
  G/SCM/N/386/CHN  
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1 2 3 4 5 6 7 8 9 10 11 
United 
States 
(Cont'd)           Louisiana  
1. Sales -Tax Exclusion for Installation 
of Board Roads in Oil -fields 
2. Sales -Tax Exclusion on Drilling 
Rigs/Sales -Tax Exemption for Repairs 
and Materials Used on Drilling Rigs  
3. Excess of Percentage over Cost 
Depletion  
4. Natural Gas Severance Tax 
Suspension for Horizontal Wells  
5. Natural Gas Severance Tax 
Suspension for Inactive Wells  
6. Natural Gas Severance Tax 
Suspension for Deep Wells  
7. Reduced Severance Tax on 
Incapable Oil Well Gas  
8.Reduced Severance Tax on 
Incapable Gas Well Gas  
9. Oil Deduction Severance Tax on 
Transpo rtation Fees  
10. Severance Tax Suspension on Oil 
from Horizontal Wells  
11. Severance Tax Suspension on Oil 
from Inactive Wells  
12. Severance Tax Suspension on Oil 
from Deep Wells  
13. Severance Tax Suspension on Oil 
from Tertiary Recover  
14. Reduced Severance Tax Rate on 
Incapable Oil Wells  
15. Reduced Severance Tax Rate on 
Oil from Stripper Wells  
16. Severance Tax Exclusion on 
Flared or Vented Natural Gas  
17. Severance Tax Exclusion for 
Natural Gas Used in Field Operations  
North Dakota  
1. Gas Gross Production Tax 
Exemptions + Oil Extraction Tax 
Exemptions/Reduced Tax Rate for 
Certain Wells Outside the Bakken and 
Three Forks Region  
2. Sales tax exemption for oil/Sales 
tax exemption for CO 2 used for 
enhance oil recovery/Sales tax 
exemption fo r natural gas  
Oklahoma  
1. Sales Tax Exemption for Electricity 
Used in Enhanced Oil Recovery  
2. Cost of Complying with Sulphur 
Regulations    
  G/SCM/N/386/CHN  
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1 2 3 4 5 6 7 8 9 10 11 
United 
States 
(Cont'd)           3. Full Expensing of Capital 
Investments in Qualified New 
Refinery Capacity  
4. Gross Production Tax Rebate for 
Re-established Production  
5. Gross Production Tax Rebate for 
Production Enhancement/Enhanced 
Oil Recovery Deduction  
6. Gross Production Tax Reb ate 
for 3D Seismic Wells  
7. Gross Production Tax Exemption 
for O&G Owned by Government  
8. Gas Marketing Deduction Against 
Gross Production Tax  
9. Gross Production Tax Rebate for 
Horizontally Drilled Wells  
10. Gross Production Tax Rebate for 
New Discovery W ells  
Pennsylvania  
1. Realty -Transfer Tax Exemption for 
Resource Leases  
Texas  
1. Sales Tax Exemption for Oil & Gas 
Equipment  
2. Severance Tax Exemptions for 
Crude Oil and Natural Gas  
West Virginia  
1. Exclusion of Low Volume Oil & Gas 
Wells  
Wyoming  
1. Sales -Tax Exemption for 
Transporting Drilling Rigs/Sales -Tax 
Exemption for Certain Well 
Services/Sales -Tax Exemption 
for CO2 Used in Tertiary Production  
2. Severance -Tax Reduction for 
Stripper Wells  
Direct Subsidies:  
1. Research and development grants 
of DOE  
2. Texas Economic Development Act  
3. Texas Enterprise Fund  
4. Centers of Energy Excellence 
Program  
5. Industrial Tax Exemption Program  
6. MEGA Job Creation Tax Credits  
7.Industrial Facilities Exemption -
P.A.198  
8. Payment in Lieu o f Tax, PILOT  
9. FastTrack Economic Development 
Fund Grants    
  G/SCM/N/386/CHN  
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1 2 3 4 5 6 7 8 9 10 11 
United 
States 
(Cont'd)  Polyvinyl Chloride 
(PVC)  
39041090  
ID: 20 -0004 14.10.2020 
S: 01.2019-
12.2019  
I :01.2016-
12.2019 - - - 23.09.2021  
Termination  
No injury  - 296,804 tons  
(01.2019-
12.2019)  44.62% of 
total imports  1. Upstream Subsidy of United 
States Government  
(1) FEDERAL GOVERNMENT,  
Expensing of Intangible Drilling 
Costs, Percentage Depletion for Oil 
and Natural Gas Wells, Two Year 
Amortization Period for Geo logical & 
Geophysical Expenditures, 
Percentage Depletion for Hard 
Mineral Fossil Fuels, Expensing of 
Exploration and Development Costs 
for Hard Mineral Fuels, Deduction for 
Tertiary Injectants, Exception to 
Passive Loss Limitation for Working 
Interests in Oil and Natural Gas 
Properties, Enhanced Oil Recovery 
(EOR) Credit, Marginal Wells Credit, 
Corporate Income Tax Exemption for 
Fossil Fuel Publicly Traded 
Partnerships, Excise Tax Exemption 
for Crude Oil derived from Tar Sands,  
Royalty -Exempt Beneficial Use of 
Fuels, Royalty -Free Flaring and 
Venting of Natural Gas  
(2) ALASKA, LNG Storage Facility 
Credit, Gross Value Reduction, Oil 
and Gas Industry Service 
Expenditures Credit, In -State 
Refinery Tax Credit, Qualified Capital 
Expenditure Credit, D evelopment 
Credit for Small Producers and New 
Areas, Alternative Credit for 
Exploration  
(3) CALIFORNIA, Percentage 
Depletion of Mineral and Other 
Resources  
(4) COLORADO, Severance -Tax 
Exemption for Stripper Wells, 
Severance -Tax Oil and Gas Ad 
Valorem Credi t, Severance -Tax 
Exemption for Low -Volume Oil -Shale 
Production, Reduced Value for 
Certain Mineral Properties    
  G/SCM/N/386/CHN  
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1 2 3 4 5 6 7 8 9 10 11 
United 
States 
(Cont'd)           (5) LOUISIANA, Sales -Tax Exclusion 
for Installation of Board Roads in Oil-
fields, Sales -Tax Exclusion on Drilling 
Rigs/Sales -Tax Exemption for Repairs 
and Materials Used on Drilling Rigs, 
Excess of Percentage over Cost 
Depletion, Natural Gas Severance 
Tax Suspension for Horizontal Wells, 
Natural Gas Severance Tax 
Suspension for Inactive Wells, 
Natural Gas Severance Tax 
Suspension for Deep Wells, Reduced 
Severance Tax on Incapable Oil Well 
Gas, Reduced Severance Tax on 
Incapable Gas Well Gas, Oil 
Deduction Severance Tax on 
Transportation Fees, Severance Tax 
Suspension on Oil f rom Horizontal 
Wells, Severance Tax Suspension on 
Oil from Inactive Wells, Severance 
Tax Suspension on Oil from Deep 
Wells, Severance Tax Suspension on 
Oil from Tertiary Recovery, Reduced 
Severance Tax Rate on Incapable Oil 
Wells, Reduced Severance Tax Rat e 
on Oil from Stripper Wells, Severance 
Tax Exclusion on Flared or Vented 
Natural Gas, Severance Tax 
Exclusion for Natural Gas Used in 
Field Operations  
(6) NORTH DAKOTA, North Dakota: 
Gas Gross Production Tax 
Exemptions + Oil Extraction Tax 
Exemptions/Redu ced Tax Rate for 
Certain Wells Outside the Bakken and 
Three Forks Region, Sales tax 
exemption for oil/Sales tax 
exemption for CO 2 used for enhance 
oil recovery/Sales tax exemption for 
natural gas    
  G/SCM/N/386/CHN  
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1 2 3 4 5 6 7 8 9 10 11 
United 
States 
(Cont'd)           (7) OKLAHOMA, Sales Tax Exemption 
for Electricity Used in Enhanced Oil 
Recovery, Cost of Complying with 
Sulphur Regulations, Full Expensing 
of Capital Investments in Qualified 
New Refinery Capacity, Gross 
Production Tax Rebate for Re -
established Production , Gross 
Production Tax Rebate for Production 
Enhancement/Enhanced Oil Recovery 
Deduction  
(8) PENNSYLVANIA, Realty -Transfer 
Tax Exemption for Resource Leases  
(9) TEXAS, Sales Tax Exemption for 
Oil & Gas Equipment, Severance Tax 
Exemptions for Crude Oil and  Natural 
Gas 
(10) WYOMING, Sales -Tax Exemption 
for Transporting Drilling Rigs/Sales -
Tax Exemption for Certain Well 
Services/Sales -Tax Exemption for 
CO2 Used in Tertiary Production   
2. Direct Subsidies:  
(1). Industrial Tax Exemption  
(2). Quality Jobs Program  
(3). Enterprise Zone Program  
(4). Research and Development Tax 
Credit  
(5). Restoration Tax Abatement 
Program; Led Fast start; Competitive 
Projects Payroll Incentive  
(6). Chapter 380 of the Texas Local 
Government Code  
(7). Freeport Exemption  
(8). Manufactory Exemptions  
(9). Skills Development Fund  
(10). Texas Economic Development 
Act 
 
 
    
  G/SCM/N/386/CHN  
- 11 - 
 
Reviews/Other subsequent proceedings  
Country or 
customs 
territory  Product  Initiation  Preliminary 
results/ 
determination  Final results  Revocation 
of Measures  Other (e.g., 
procedures not 
affecting the duty 
level)  Trade Data  
(if available from 
published report(s) on 
proceeding)  Countervailed 
programme(s)  Definitive 
duty Undertaking  
Description; HS 6 -
digit category 
covering investigated 
product3;  
ID number;  
(*) if investigation of 
>1 country  Date, Type of 
Review or 
Procedure (code), 
Period Covered  Effective date; 
range of individual 
amounts of subsidy;  
"other" rates;  
[range of applied 
rates if different, 
reason]  Effective date, 
range of 
individual 
amounts of 
subsidy;  
"other" rates; 
[range of 
applied rates if 
different, 
reason]  Effective date; 
range of 
individual 
amounts of 
subsidy or 
minimum prices;  
or other outcome 
(code)  Date,  
reason  Date,  explanation  Import 
volume or 
value (units/ 
currency); 
product 
coverage, 
period, if 
different from 
cols. 2/3  Import 
volume as 
% of 
apparent 
domestic 
consumption 
or as % of 
total 
imports  Name(s) of the 
subsidy 
programme(s) 
countervailed  
1 2 3 4 5 6 7 8 9 10 11 
NIL 
 
 
 G/SCM/N/386/CHN  
- 12 - 
  ANNEXES  
DEFINITIVE COUNTERVAILING MEASURES IN FORCE  
AS OF 31 DECEMBER 2021  
Country or 
customs 
territory  Product, investigation  
ID number  Measure(s)  Date of original 
imposition; 
publication 
reference  Date(s) of 
extension; 
publication 
reference(s)  
Australia  Barley  
ID: 18 -0003 Duties  19.05.2020  
Gazette, 2020 No. 15  - 
European Union  Potato starch  
ID: 10 -0001 Duties  17.09.2011  
Gazette, 2011 No. 54  15.09.2017  
Gazette, 2017 No. 38  
India Ortho chloro para 
nitroaniline  
ID: 17 -0001 Duties  13.02.2018  
Gazette, 2018 No. 18  - 
United Kingdom  Potato starch  
ID: 10 -0001-UK1 Duties  01.01.2021  
Gazette, 2011 No. 54  - 
United States  Solar-grade polysilicon  
ID: 12 -0007 Duties  20.01.2014  
Gazette, 2014 No. 04  20.01.20 20 
Gazette, 20 20 No. 0 2 
 Distillers dried grains with 
or without solubles  
ID: 16 -0001 Duties  12.01.2017  
Gazette, 2016 No. 80  - 
 n-Propanol (NPA)  
ID: 19 -0001 Duties  18.11.2020  
Gazette, 2020 No.  47 - 
 
TERMINATION OF MEASURES DURING THE PERIOD  
1 JULY THROUGH 31 DECEMBER 2021  
Country/Customs 
Territory  Product,  
investigation ID number  Date of termination  Reason for termination  
NIL 
__________  
 
1 According to the Public Notice of the Ministry of Commerce of the People's Republic of China 
(Gazette  2021 No. 03), the trade remedy measures applied to the European Union before 31 December 2020 
would continue to apply to the United Kingdom with the implementation period unchanged.