G/SCM/Q2/CHN/122  
 
26 April 2023  
(23-2945) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
REPLIES TO SECOND SET OF FOLLOW -UP QUESTIONS1 
POSED BY CANADA TO REPLIES2 PROVIDED BY CHINA  
REGARDING THE 2019 NEW AND FULL NOTIFICATION OF CHINA3 
The following communication, dated and received on 25 April 2023, is being circulated at the request 
of the delegation of China.  
 
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Question 1  
In response to Canada's question as to why the "Interim Measures for the Administration 
of Intellectual Property (Patent) Special Funds in Shandong Province" (issued by the 
Department of Finance of Shandong Province) was not notified in China's 2019 subsidy 
notification, China's asked that Canada provide a web link to the measure.  
Canada notes that the "Interim Measures for the Administration of Intellectual Property 
(Patent ) Special Funds in Shandong Province" is currently being countervailed following 
the 2018 Canadian investigation regarding imports of sucker rods from China4. Canada 
therefore reiterates its question as to why this program was not included in China's 
2019  subsidy notification.  
Reply : 
This is an inclusive policy designed to encourage innovation and China makes the notification based 
on its own understanding of the ASCM . 
Question 2  
In response to Canada's question as to why the program Export Performance Grants 
(Cai Qi No.467 2000) was not notified, China responded that the measure was notified in 
2006. The notification of a program 15 years ago does not discharge a country of its 
obligation to notify its specific subsidies every two years.  
a. Was Export Performance Gra nts (Cai Qi No. 467 2000) in place during the period 
covered by China's 2019 subsidy notification?  
Reply : 
The Circular of the Ministry of Finance and the Former Ministry of Foreign Trade and Economic 
Cooperation on issuing the  (Interim) Measures for the Management of International Marketing Funds 
 
1 G/SCM/ Q2/CHN/119.  
2 G/SCM/Q2/CHN/85 – Questions from Canada; G/SCM/Q2/CHN/92 - Replies from China; 
G/SCM/Q2/CHN/103 – Follow -up questions from Canada; G/SCM/Q2/CHN/109 – Replies from China.    
3 G/SCM/N/343/CHN and G/SCM/N/343/CHN/Corr.1 . 
4 Certain Sucker Rods 2018 Investigati on – Final Determinations, see Appendix 2. https://www.cbsa -
asfc.gc.ca/sima -lmsi/i -e/sr2018/sr2018 -fd-eng.html . 
 G/SCM/Q2/CHN/122  
 
- 2 - 
 
  of Small and Medium -sized Enterprises (C ai Qi [2000] No. 467) does not contain any subsidy for 
export performance. The export amount  is one of the criteria  to determine whether an enterprises 
is a small or medium -sized enterprise that meets the requirements of  the document , not one of the 
conditions for receiving subsidies.  Therefore  this is not  a subsidy contingent to export performance. 
The Canadian side had some misunderstanding in raising the question.  
The po licy was not in implementation during the period covered by 2019 notification.  
 
b. If so, grateful for clarifying: the policy objective of the measure (or purpose); 
the form of the subsidy; to whom the subsidy is provided; and the total amount 
of annual amoun t budgeted.  
Reply : 
Not applicable as the answer is negative for Q2. a. 
 
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