G/SCM/Q2/CHN/102  
 
27 April 2021  
(21-3573) Page: 1/6 
Committee on Subsidies and Countervailing Measures  Original: English  
 
  
SUBSIDIES  
REPLIES1 TO FOLLOW -UP QUESTIONS2 FROM THE EUROPEAN UNION REGARDING THE  
NEW AND FULL NOTIFICATION OF CHINA3 
The following communication, dated and received on 26  April 2021, is being circulated at the request 
of the delegation of China.  
 
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Scheme 2.13 - Fund for research and development of applicative technologies  
Question 38 
What are the eligibility criteria for this programme ? What is the approval process for 
investment decisions ? Are SOE eligible to this Fund ? If yes what is the share of SOEs 
among beneficiaries ? To what extent is the Fund related to MIC2025 ? How are the 
subsidies channelled to the beneficiaries ? Directly?  Via cooperation agreements with 
Banks ? If yes which banks ? In what form ? (Loan, subsidies interest rates, subsidised 
insurance premia, grants, equity?)  
Reply  
 
Eligibility criteria for this programme: Compliance with the relevant provisions of the Administrative 
Measures on the Use of Luoyang City Fund for Research and Development of Applied Technology. 
The beneficiaries are all enterprises, scientific research institutes, colleges and universities with 
independent legal personality registered in Luoyang City, regardless of the nature of ownership. The 
Fund is not relate d to Made in China 2025, and its form is direct payment.  
 
Scheme 2.17 - Fund for development of emerging industries  
Question 39 
Can China explain which banks administer this scheme ? Can support from this fund be 
cumulated with support from the national Fund for development of strategic emerging 
industries (1.77) ? Can China explain why only one sub -central fund for strategic emerging 
industries is notified ? Is it China 's understanding that there is only one sub -central fund 
of this kind ? How does  China explain that funds such as the Shandong Guidance Fund for 
strategic emerging industries and set up in 2015 (Lu  Caiqi 2015/51, 28 sept 2015) or 
Shandong Province 's New and Emerging Industries and Business Creation Guidance Fund 
(ref: http://www.gov.cn/zhengce/2015 -09/25/content_5044504.htm ) are not notified?  
Reply  
 
In practice, there is no bank involved in the scheme. In addition, it is clearly stipulated in the 
document that the  management and use of the Fund follow the principle of "non-repetitive benefits ". 
 
1 Please note that partial replies were provided in document G/SCM/Q2/CHN/96.  
2 G/SCM/Q2/CHN/79 .  
3 G/SCM/N/315/CHN.  G/SCM/Q2/CHN/102  
 
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  Therefore, support from this Fund cannot be accumulated with support from the National Fund for 
Development of Strategic Emerging Industries.  
The Fund for Investment and Start -ups in Emerging Industries is market -oriented, and has 
significant differences with fiscal fund in terms of forms and operating modes. The Fund for 
Investment and Start -ups invests in the form of equity participation, which is an equit y investment 
activity. The Fund for Guidance insists on holding shares but not controlling shares. All types of its 
equity investment funds are operated independently in a market -oriented manner. Fund -raising, 
investment, management, and exit are all indep endently operated and managed by the fund 
management team in a market -oriented manner.  
Scheme 2.3 - Fund for renovation of boilers and industrial furnaces  
Question 40 
Can China please provide information on the companies that benefit from this program ? 
Are there steel and aluminium manufacturing companies included ? If so, which companies 
are they?  
Reply  
 
Steel and aluminium manufacturing companies are not included.  
Scheme 2.5 - Fund for development of low -carbon manufacturing industry  
Question 41 
What compa nies in what sectors benefit from these interest subsidies ? Which banks 
administer this scheme?  
Reply  
 
The Fund supports enterprises in low -carbon manufacturing industries such as green food 
processing, new energy and new materials, and intelligent manufac turing. No specific bank was 
designated to administer this scheme.  
Scheme 2.25 - Subsidy for purchase of pure electric passenger vehicles  
Question 42 
Who are the subsidies paid to – car manufacturers or purchasers ? Is this scheme still in 
operation ? What is the amount paid in 2016?  
Reply  
 
Beneficiaries: Owners of new energy passenger vehicles, plug -in hybrids, pure electric special 
vehicles and fuel cell vehicles (except those purchased with fiscal funds).  
The scheme was released in 2015 an d ceased to be implemented in 2016.  
Scheme 2.27 - Fund for research and development of enterprises  
Scheme 2.28  - Fund for technical renovation of industrial enterprises  
Scheme 2.29 - Fund for development of industrial enterprises  
Scheme 2.57 - Fund for pro motion of industrial restructuring  G/SCM/Q2/CHN/102  
 
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  Question 43 
What industries/sectors are covered by these schemes ? What are the criteria to qualify 
for support ? How are the funds paid?  
Reply  
 
For Scheme 2.27  - Fund for Research and Development of Enterprises of Shandong Province  
 
The fund is not specific to any i ndustr y or sector . 
Eligibility criteria: 1) Resident enterprises registered in Shandong Province (excluding Qingdao City). 
2) The research and development activities carried out by the enterprise fall with in the scope of the 
national R&D expenses pre -tax deduction policy. 3) For enterprises with annual sales revenue of 
more than RMB 200 million yuan, their R&D investment in the current year shall be higher than that 
of the previous year and account for at l east 3% of their sales revenue of the current year, in 
addition, they have applied for and have been given annual R&D expenses pre -tax deduction 
treatment for two consecutive tax years. For enterprises with annual sales revenue of up to 
RMB 200 million yua n, their R&D investment in the current year shall account for at least 5% of the 
current year 's sales revenue.  
The form of the paid fund has been included in our notification.  
 
For Scheme 2.28 - Fund for Technical Renovation of Industrial Enterprises of Ti anjin City  
 
Eligibility criteria: Enterprises in Tianjin with complete corporate governance structures, clear 
property rights, independent accounting, law -abiding operations, and sound financial systems, who 
have no record of violation of laws or regulatio ns in the past three years, and have good accounting 
and tax credit rating. The scheme mainly supports enterprises to invest in fixed assets.  
The form of the paid fund has been included in our notification.  
 
Scheme 2.29 - Fund for Development of Industrial Enterprises of Tianjin City  
 
Industries and sectors covered by the scheme: Manufacturing platform construction, industrial 
infrastructure capacity building, intelligent manufacturing, etc.  
The form of the paid fund has been included in our notif ication.  
 
For Scheme 2.57 - Fund for Promotion of Industrial Restructuring of Beilun District, Ningbo  
 
Industries and sectors covered by the scheme: Recipient enterprises, in principle, shall engage in 
Ningbo 's strategic emerging industries.  
Eligibility cr iteria: High -quality, strategic, and new -type industrialized enterprises: registered 
industrial enterprises in Beilun District, with high quality and performance and sound growth. Their 
actual tax payment in the current year shall be more than RMB 2 millio n yuan, and shall be more 
than 15% higher than that of the previous year or than the average tax payment of previous 
three  years.  
The form of the paid fund has been included in our notification.  
Schemes 2.31 and 2.63 - Funds supporting public listing of c ompanies  
Question 44 
It is noted that China has notified two schemes supporting the public listing of companies . 
We note that there may be other such schemes in existence such as the "ZHUHAI City 
Fund for public listing of enterprises ". Can China explain why it has not notified this 
scheme and if there are others which should have been notified?  
Reply  
 
China has made notifications based on the collected information.  G/SCM/Q2/CHN/102  
 
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  Scheme 2.55 - Fund for product quality improvement  
Question 45 
What are the criteri a to qualify for this fund ? What industries/sectors are covered?  
Reply  
 
Eligibility criteria: 1) Each recognized Wenzhou Mayor Quality Award enterprise will be awarded a 
lump sum of RMB 500,000 yuan. 2) Each zone or industry given the title of Wenzhou High -
quality  Product Production Demonstration Zone (Industry) will be awarded a lump sum of 
RMB 100,000 yuan.  
Scheme 2.34 - Fund for the industrialization of high and new technologies  
What type of projects are covered by this scheme ? What industries qualify for support?  
Reply  
 
Electronic information, biotechnology and modern medicine, new energy and energy saving and 
environmental protection, new energy vehicles, new materials, etc.  
Scheme 2.38 - Fund in support of leading fishery enterprises  
What are the criteria applicable for this fund ? What are the enterprises that have 
benefitted from support under the fund?  
Reply  
 
For eligibility criteria of this Fund, please refer to the Notice of the Tianj in Municipal Commission of 
Rural Affairs and Tianjin Finance Bureau on Issuing the Administrative Measures on the 
Development  of and Fiscal Fund for Pilot Projects of Key Leading Fishery Enterprises in Tianjin (Jin 
Nong Wei Ji Cai [2016] No. 81).  
Schemes 2 .40, 2.45 and 2.67 - Funds for dissolving overcapacity  
While these three schemes relate to overcapacity reduction in coal, only one (2.40) 
concerns reduction in overcapacity in the steel industry - for Yunnan province . In the 
13th FYP for Steel, China seek s to reduce China 's steel overcapacity by 100 -150 mmt by 
the year 2020 . In this context can China explain why only one scheme for reducing 
overcapacity in steel is notified . In this context were other schemes put in place to reduce 
overcapacity in steel an d, if so, why were these not notified?  
Reply  
 
China has made notifications based on the collected information.  
Scheme 2.53 - Fund to foster start -up science and technology enterprises  
Question 46 
What are the criteria applicable to this fund ? Which banks are the loans channelled 
through?  
Reply  
 
The Hangzhou municipal finance authorities will provide subsidized loan interest to enterprises that 
are included in the city 's technology -based start -ups training project and meet the funding criteria 
after r eview. Eligible enterprises will receive the interest subsidy from the municipal and district 
finances after they actually paid interest on the loan taken out.  G/SCM/Q2/CHN/102  
 
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  Schemes 1.20, 1.22, 1.23, 1.69, 2.1, 2.25, 2.68, 2.93 - Schemes relating to new 
energy  vehicles  
Can China confirm that these schemes emanate from the Made in China 2025 priorities, to 
support the NEV sector ? Are the funds governed centrally ? In a notice on its website on 
19 March  2019, The Ministry of Industry and Information Technology (MIIT) annou nce 
the preliminary review of new  energy vehicles (NEV) subsidies from 2016 and previous 
years until 25 Mar 2019, in line with  'Notice on settling 2015 and 2016 NEV subsidies . Can 
China please explain which of the subsidies in the lists provided in MIIT we bsite are 
notified in the current Subsidy notification . For those schemes in the lists, which were not 
notified, can China please explain why this is the case and if they intend to make a 
supplementary notification.  
Reply  
 
China has notified the new energy  vehicles (NEV) subsidies. China makes notifications based on the 
requirements of the subsidy agreement and its own understanding.  
 
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  G/SCM/Q2/CHN/102  
 
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  ANNEX - SCHEMES FOR WHICH EU WOULD LIKE TO RECEIVE THE CHINESE NAME  
CENTRAL LEVEL  
1.76  Fund for development of strategic emerging industries  
1.77  Fund for the development of international economic relations and trade  
1.78  Reward for public -private PPP projects  
1.79  Industrial transformation and upgrading fund  
1.80  Reward and support fund for restructuring of industrial enterprises  
1.81  Fund for promotion of energy -saving products  
 
SUBCENTRAL LEVEL  
2.13 Luoyang Fund for research and development of applicative technologies  
2.17 Nanjing City (Jiangsu) Fund for development of emerging industries  
2.18 Yancheng city (Jiangsu) Fund for transformation and upgrading of industry and  IT 
2.27 Shandong Fund for research and development of enterprises  
2.28 Tianjin Fund for technical renovation of industrial enterprises  
2.29 Tianjin Fund for development of industrial enterprises  
2.31 Tianjin Fund supporting public listing of enterprises  
2.34 Tianjin Fund for the industrialisation of high and new technologies  
2.48 Hebei Fund in support of scientific and technology innovation  
2.49 Hebei Fund rewarding public listing of enterprises  
2.52 Hangzhou Fund for science and technology innovation projects  
2.55 Wenzhou Fund for product quality improvement  
2.56 Ningbo Fund in support of engineering (technology) centers of enterprises  
2.57 Ningbo Fund for promotion of industrial restructuring  
2.61 Shaanxi Reward for public private partnership projects PPP  
2.63 Ningxia Hui Fund supporting public listing of enterpr ises 
2.64 Ningxia Hui Fund for projects of new type industrialisation development  
2.65 Ningxia Hui Fund for the development of SMEs and non -public economy  
2.72 Guangxi Fund for the transformation of scientific and technology achievements 
purchased by ente rprises  
2.83  Shanghai Fund for industrial transformation and development  
2.86  Shanghai Fund for scientific and technology innovation  
2.88 Shanghai Fund for development through structural adjustment and change in 
growth pattern  
2.89  Shanghai Fund for de velopment of emerging industries  
2.90  Shanghai Fund for industry and information technology projects  
2.106   Chaozhou Fund for high and new technology enterprises  
 
 
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