G/SCM/Q2/CHN/120  
 
24 January 2023  
(23-0595) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
FOLLOW -UP QUESTIONS POSED BY CANADA TO REPLIES1 PROVIDED BY CHINA  
REGARDING THE 2021 NEW AND FULL NOTIFICATION OF CHINA2 
The following communication, dated and received on 24 January 2023, is being circulated at the 
request of the delegation of Canada.  
 
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Canada would like to submit the below follow -up questions regarding China's 2021 Subsidy 
Notification.  
I. Subsidies at the Central Government Level  
Question 1  
a. In response to Canada's question on Program 49 ( Special Fund for Foreign Economic and 
Trade Development ), China explains that the fund "shall not be contingent upon export 
performance ". However, the response did not address the other question posed by 
Canada regarding this program. Please el aborate on the sectors eligible for this program.  
b. China also explains that the "factor approach " to be used for the program "refers to the 
method of assigning weights or standards to relevant factors for fund allocation. " What 
are the "relevant factors " to which China will assign "weights " for the purpose of 
allocating funding?  
Question 2  
In response to Canada's question on how Program 69 ( Subsidy Fund for Fishery Development and 
the Scrapping, Dismantling and Renovating of Vessels)  intends to promote the s ustainable 
development of distant water activities, China responded that the subsidy provided under the 
program is not limited to distant -water fishing.  
China's answer is not clear.  
a. Regarding the aspects of this subsidy program that are provided to dista nt water fishing 
vessels, how does this subsidy intend to "promote the sustainable and healthy 
development of distant water fishing "? 
b. Also, what activities must distant water fishing vessels be engaged in to be eligible for 
this fund?  
 
1 G/SCM/Q2/CHN/110 – Questions Posed by Canada; G/SCM/Q2/CHN/116 – Replies by China.  
2 G/SCM/N/372/CHN.  G/SCM/Q2/CHN/120  
 
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  II. Subsidies at the Sub-Central Government Level  
Question 3  
In response to Canada's question on Shanghai Municipality Program 9.1 ( Special Fund for 
Development of International Economy and Trade ), China directs Canada to refer to "Measures for 
the Use and Management of Special Fund for Foreign Economic and Trade Development of Shanghai 
Municipality (H. Sh. C. [2016] No.207) " for more information regarding the program.  
While Canada appreciates that more information may be found in the legislation itself, Canada fails 
to see how directing a WTO member to a legislative measure (which is not in one of the official WTO 
languages) meets the transparency obligations of the subsidy notification review process.  
Therefore, Canada would like to obtain clarifications from China.  
a. Does the measure target specific sectors? If so, please elaborate on the types of sectors 
eligible for this program.  
b. Does the measure include support for firms to export products to foreign markets?  
Question 4  
In response to Canada's question on Shandong Prov ince Program 15.2 ( Special Fund to Support the 
Development of Distant Water Fishing ), China states that the program "aims to encourage distant 
water fishing enterprises to invest in Rizhao, Shandong ". 
Canada did not ask questions about the objective of the  Program. Rather Canada asked what 
requirements must be met in order for an "enterprise " to be considered eligible for a grant under 
this fund? Does the program support, among other things, the construction of new vessels? Canada 
would welcome answers to t hese questions.  
Question 5  
The response to Canada's question on Xiamen City of Fujian Province Program 35.2 ( Special Fund 
for Marine and Fishery Development ) directs Canada to refer to the "Administrative Measures of 
Xiamen Municipality for the Special Fun d for the Development of Marine Economy " for more 
information regarding the program.  
While Canada appreciates that more information may be found in the legislation itself, Canada fails 
to see how directing a WTO member to a legislative measure (which, in a ddition, is not in one of the 
official WTO languages) meets the transparency obligations of the subsidy notification review 
process. Therefore, Canada would like to obtain clarification as to:  
a. What does supporting the development of distant -water fishing e ntail? Does that include 
an increase in fishing capacity?  
b. What requirements must be met in order for an "enterprise " to be considered eligible for 
this program?  
 
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