G/SCM/Q2/CHN/104  
6 August  2021 
(21-6123) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
SECOND SET OF FOLLOW -UP QUESTIONS POSED BY THE  
UNITED STATES TO REPLIES1 REGARDING THE  
NEW AND FULL NOTIFICATION OF CHINA2 
The following communication, dated and received on 26 July 2021, is being circulated at the request 
of the delegation of the United States . 
 
_______________  
 
 
We appreciate China's answers to the United States' follow -up questions regarding China's 201 9 
notification but have some additional follow -up questions.  
Question 1  
This question was not answered in our original and follow -up questions : Does China accept its 
obligation to publish in the MOFCOM Gazette all legal measures that establish and implement its 
subsidy programs at all levels of government ? 
Question 2  
In Question 13 of our original questions, the United States asked : According to the Domestic Refined 
Fuel Price Reform Upward Adjustment According to the System notice issued on 2 December 2019 
(and earlier iterations of this program), purchasers of diesel fuel in the fishery sector enjoy a 
preferential price compared to other retail purchasers, based on a state determined sales price . Does 
China intend to notify this program and publish it in the MOFCOM Gazette ? China responde d stating : 
"China has not implemented the measure mentioned by the US, and purchasers of diesel fuel in the 
fishery sector do not enjoy a preferential price compared to other retail purchasers."  
However, we note that China appears to have continued to implement the measure throughout 
2020, issuing adjustment notices for the program on a near -monthly basis . Moreover, the latest 
Domestic Refined Fuel Price Reform Upward Adjustment According to the System notice was just 
issued by the National  Development Reform Commission on 15 January  2021 (Price Department of 
the National Development and Reform Commission, Domestic Refined Fuel Price Reform Upward 
Adjustment  According to the System;  
https://www.ndrc.gov.cn/xwdt/xwfb/202101/t20210115_1264991.html ). Therefore, it appears the 
program remains in place . In response to this question, China replied that the program has been 
repealed . 
However, once again, another Domestic  Refined Fuel Price Reform Upward Adjustment  measure was 
issued on 12 July 2021 (https://www.ndrc.gov.cn/xwdt/xwfb/202107/t20210712_1290249.html ). 
We acknowledge that the pricing standard has been raised in these most recent measures , but once 
again, this indicates that the underlying program remains in place . Please explain.  
 
1 G/SCM/Q2/CHN/86 (original questions); G/SCM/Q2/CHN/93 (replies); G/SCM/Q2/CHN/97 (follow -up 
questions); G/SCM/Q2/CHN/99 (replies to follow -up questions).  
2 G/SCM/N/343/CHN.  G/SCM/Q2/CHN/104  
- 2 - 
  Question 3 
In our original questions, this question was not answered with respect to the subs -central programs 
listed below . For each of the sub -central fishing programs identified below, how much of the funding 
is used to : (1) decrease the operation costs of domestic marine vessels, (2) decrease the operation 
costs of distant water vessels, (3) reward distant water fishing vessels for bringing catch back to 
China for processing, (4)  provide insurance and other income supplement to fishermen during a 
moratorium  on fishing, or (5) support vessel refurbishing ? The programs for which this question was 
not answered are : Zhejiang Province (Grant for policy -based fishery mutual insurance ; and Fund for 
marine and fishery comprehensive management and industry developmen t); Fuzhou City, 
Fujian  Province (Fund for fishing ports) ; Shandong Province (Fund for distant water fishery 
development) ; Production and living allowance for fishermen during fishing close seasons ; Fund for 
aquaculture ; and Living allowances for fisherman  during fishing close seasons) ; Dalian City of 
Liaoning Province (Fund for marine and fishery development) ; Qingdao City of Shandong Province 
(Fund for distant water fishery) ; Ningbo City of Zhejiang Province (Fund for policy -based fishery 
insurance) . In response to asking about these programs again in our follow -up questions, China 
replies that "These sub -central programs are under verification ." We respectfully ask that China 
answer the question.  
__________