G/SCM/Q2/CHN/107  
 
24 March 2022  
(22-2511) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
QUESTIONS POSED BY AUSTRALIA REGARDING THE NEW AND FULL  
NOTIFICATION OF CHINA1 
The following communication, dated and received on 22 March 2022, is being circulated at the 
request of the delegation of Australia.  
 
_______________  
 
 
Australia thanks China for its subsidy notification and welcomes its efforts on contributing to the 
transparency of subsidy programs.  Australia poses the following questions regarding programs 
contained in its notification:  
 
I. Subsidies at the Central Government Level  
 
Question 1  
 
There are several programs which provide preferential tax treatment, for example, Programs 2, 4, 
5, 6, 8 and 35, and where government revenue is therefore foregone.  Noting the difficulties China 
has flagged with providing the level of subsidies under these programs, could China clarify whether 
it is able to provide data on total amounts budgeted for these programs ? 
 
Program 15 Preferential tax treatment for energy -saving and new energy vehicles and 
vessels  
 
Question 2 
 
What types of "vessels " are eligible under this program?   
 
Question 3 
 
Is the fishing sector eligible?  
 
Program 27 Preferential tax policies for farming, forest, animal husbandry and fishery 
product projects  
 
Question 4 
 
Could China please elaborate which type of fishery product projects are eligible for preferential tax 
treatment? is this for aquaculture and/or marine capture fishing?  
 
Question 5 
 
Are there performance requirements for preferential tax treatment?  
 
 
1 G/SCM/N/372/CHN . G/SCM/Q2/CHN/107  
 
- 2 - 
 
  Question 6 
 
The not ification notes that the enterprise 's income tax may be exempted or reduced.  How is it 
determined whether the income tax is exempted or reduced?  Is the tax exempted or reduced for 
the fisheries sector?  
 
Question 7 
 
Noting that the legislation reference is identical, how does this program relate to Program 66 
"Preferential tax policies for enterprises engaged in projects of agricultural, forestry, animal 
husbandry and fishery "? 
 
Program 67 Fishery stocks enhancement a nd fish fries releasing  
 
Question 8 
 
Could China please clarify whether this subsidy program is administered via local governments.  
 
Question 9 
 
Could China please clarify the form of subsidy provided to fishermen via local governments.  
 
Question 10 
 
Is this fund conditioned on fishing in certain areas or performance requirements?  
 
Program 71 Subsidy for reform in tax and fee on refined oil (for fishery)  
 
Question 11 
 
Could China clarify how the purpose of the subsidy, inter alia, "to reduce the fishing i ntensity " etc 
and that the fuel subsidy is provided to those fishers that no longer engage in fishing and whose 
vessels are scrapped.  
 
Question 12 
 
Could China please provide the total amount budgeted for this program.  
 
Question 13 
 
What is the rate (reduced tax level) of the fuel subsidy provided?  
 
Question 14 
 
Could China confirm whether this subsidy is ongoing.  
 
II. Subsidies at the Sub-Central Government Level  
 
1. Beijing Municipality:  
 
Program 2 Fund for Resolving of Overcapacity in Coal Sector a nd Resettlement and 
Relocation of Employees  
 
Question 15 
 
Could China please elaborate on what conditions are attached to the provision of grants under this 
program to eligible enterprises.  
 G/SCM/Q2/CHN/107  
 
- 3 - 
 
  3. Hebei Province:  
 
Program 2 Reward and Subsidy to Resolve Overcapacity in Coal Industry  
 
Question 16 
 
Could China please elaborate on what conditions are attached to the provision of grants under this 
program to eligible coal mines.  
 
4. Shanxi Province  
 
Program 1 Fund for Fishery Resources Conservation  
 
Question 17 
 
What conditionalities are attached to the receipt of grants under this program, in particular for 
fishers?   
 
15. Shandong Province  
 
Program 2 Special Fund to Support the Development of Distant Water Fishing  
 
Question 18 
 
What are  the conditionalities for 'eligible enterprises ' receiving grants? For example, does this 
program increase the construction or increased tonnage of distant -water fishing vessels?  
 
35. Xiamen City of Fujian Province  
 
Program 2 Special fund for Marine and Fi shery Development  
 
Question 19 
 
Could China please elaborate on the conditionalities or performance requirements attached to the 
grants under this program, particularly as they relate to distant water fishing.  
 
__________