G/SCM/Q2/CHN/110  
 
21 April 2022 
(22-3191) Page: 1/4 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
QUESTIONS POSED BY CANADA  
REGARDING THE NEW AND FULL NOTIFICATION OF CHINA1 
The following communication, dated and received on 19 April  2022, is being circulated at the request 
of the delegation of Canada . 
 
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Canada kindly asks China to provide responses to the following questions:  
 
I. Subsidies at the Central Government Level  
 
Question 1  
 
The details of Program 49 ( Special Fund for Foreign Economic and Trade Development ) refer to 
providing support to underdeveloped regions to "improve international business operation 
capacities ". 
 
a. Does this program support specific sectors? If so, please elaborate on the sectors elig ible for 
this program.  
b. Does the program include support for firms to export products to other markets? If so, what 
are the conditions attached for the recipients to receive the support.  
 
Question 2 
 
Programs 45 ( Subsidy fund for agricultural resources and ecological protection); 67 (Fisheries stocks 
enhancement and fish fries releasing); and 71  (Subsidy for reform in tax and fee on refined oil for 
fishery ) describe subsidies provided directly to fishers for variou s purposes including ecological 
protection, fishery stock enhancement and industrial restructuring.  
 
a. Please elaborate on what type of fishing activities must fishers be engaged in to be eligible 
to receive subsidies under these programs?  
 
Question 3 
 
Progr am 49 ( Special Fund for Foreign Economic and Trade Development ) aims to "optimize the 
structure of international trade, " develop trade in service and technology, " according to the "factor 
approach ". 
 
a. Could China provide more details on the factor approach and whether any of subsidies 
provided under the program linked to exports?  
 
Question 4 
 
Program 51 ( Additional Subsidy for Renewal Energy Tariffs ) promotes the utilization of renewable 
energy broadly by "grid enterprises. " 
 
 
1 G/SCM/N/372/CHN . G/SCM/Q2/CHN/110  
 
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  a. Could China provide more details  on the type of renewable energy or renewable energy 
projects this subsidy will support and on the conditions attached to the provision of these 
subsidies?  
b. Is the provision of support conditional on meeting a local content threshold?  
 
Question 5 
 
Program 69 ( Subsidy Fund for Fishery Development and the Scrapping, Dismantling and Renovating 
of Vessels ) includes support to promote the development of distant water fishing and improve 
habitability of distant water fishing vessels.  
 
a. How does this subsid y fund intend to "promote the sustainable and healthy development of 
distant water fishing "? 
b. What activities must distant water fishing vessels be engaged in to be eligible for this fund?  
 
Question 6 
 
Program 71 ( Subsidy for Reform in Tax and Fee on Refine d Oil for fishery ) aims, among other things, 
to protect fisheries resources and maintain the livelihood of fishers.  
 
a. Could China clarify how the fuel subsidy will be provided to fishers or fishing vessels that 
"no longer engage in fishing, and whose fishi ng vessels are dismantled or transformed into 
artificial reefs "? 
b. Could China clarify what "fisheries resources conservation " is supported by this subsidy?  
 
II. Subsidies at the Sub-Central Government Level  
 
Question 7 
 
The following questions are in reference to programs related to "resolving overcapacity ", namely:  
 
• Beijing Municipality Program 1.2 ( Fund for Resolving of Overcapacity in Coal Sector and 
Resettlement and Relocation of Employees );  
• Heibei  Province Program 2.2 ( Reward and Subsidy to Resolve Overcapacity in Coal Industry ); 
• Inner Mongolia Autonomous Region Program 5.4 ( Reward and Subsidy Fund to Resolve 
Overcapacity in Steel and Coal Industries );  
• Anhui Province Program 12.3 ( Reward and Subsi dy Fund to Resolve Overcapacity in Steel and 
Coal Industries );  
• Guangxi Zhuang Autonomous Region Program 20.2 ( Special Reward and Subsidy for 
Restructuring of Industrial Enterprises );  
• Yunnan Province Program 25.1 ( Fund to Resolve Overcapacity ); and  
• Shaanx i Province Program 27.3 ( Fund to Resolve Overcapacity ). 
 
a. Please provide a more detailed explanation of what "resolving overcapacity " entails, and how 
these programs will achieve addressing steel overcapacity.  
b. Please confirm whether any of the subsidies pro vided support relocating steel capacity to 
other locations in China or to steel production in another country.  
 
Question 8 
 
Regarding Shanghai Municipality Program 9.1 ( Special Fund for Development of International 
Economy and Trade ) which establishes subs idies for eligible enterprises to "change development 
mode of foreign trade ". 
 
a. Could China confirm if this support targets specific sectors? If so, please elaborate on the 
type of sectors eligible for this program.  
b. Does this support include support for fi rms to export products to foreign markets?  
 G/SCM/Q2/CHN/110  
 
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  Question 9 
 
Zhejian Province Program 11.1 ( Subsidy for Policy Mutual Insurance of Fishery ) aims to help fishers 
mitigate risks of natural disasters and to ensure social stability of fishing areas.  
 
a. Could China clarify what is meant by "ensure social stability of fishing areas "? 
 
Question 10  
 
Regarding both Zheijian Province Programs 11.1 ( Subsidy for Policy Mutual Insurance of Fishery ) 
and 11.7 ( Fund to Support Projects of Standardized Construction of Fishing Vessels ). 
 
a. What specific activities must recipients be engaged in to be eligible for this subsidy?  
 
Question 11  
 
Regarding Shandong Province Program 15.2 ( Special Fund to Support the Development of Distant 
Water Fishing ). 
 
a. What requ irements must be met in order for an "enterprise " to be considered eligible for a 
grant under this fund?  
b. Does the program support, among other things, the construction of new vessels?  
 
Question 12  
 
Guangxi Zhuang Autonomous Region Program 20.21 ( Subsidy fo r Reform in Refined Oil Prices ) 
provides subsidies to reduce the costs of operating motor fishing vessels.  
 
a. What conditions must be met in order for owners of registered motor fishing vessels to be 
eligible to receive this grant (e.g. fishing in certain ge ographic areas, the size of the 
vessel,  etc.)?  
 
Question 13  
 
Regarding Chongqing Municipality Program 22.15 ( Subsidy for Reform in Refined Oil ) which seeks 
to conserve fishery resources, prohibit fishing and to incentivize fishers to reduce the number of 
fishing vessels and switch new jobs.  
 
a. What actions, other than "quitting fishing, " constitute "fishery resource conservation " 
under this program?  
 
Question 14  
 
While China notified one investment guidance fund, i.e. Qinghai Province Program 29.2 ( Fund for 
College Students Innovation and Entrepreneurship ), the WTO Secretariat – in its last trade policy 
review report of China - has identified several investment guidance funds which appear to be 
financed by the central and local governments and SOEs to sup port different industries including in 
advanced manufacturing, new materials and innovative technologies and industries. A study from 
the Center for Security and Emergency Technology reports that as of 2020, China had set up 
"1,741  guidance funds, with a c umulative registered target size of 11 trillion RMB ". 
 
a. Can China provide an explanation for why other guidance funds have not been notified?  
 
Question 15 
 
Daliang City of Liaoning Province Program 32.2 ( Fund for Marine Fishery Development ) provides 
funding for activities such as fishery stock enhancement and fishers' personal accident insurance 
and purchase of standardized aquacultural fishing vessels.  
 
a. Could China clarify what individuals or enterprises are eligible to receive a grant through this 
fund? G/SCM/Q2/CHN/110  
 
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  b. What activities must individuals or enterprises be engaged in to be eligible to receive this 
grant?  
 
Question 16 
 
Among other things, Xiamen City of Fujian Province Program 15.2 ( Special Fund for Marine and 
Fishery Development ) provides support for th e development of distant -water fishing.  
 
a. Could China elaborate further of the what does supporting the development of distant -water 
fishing entails?  Does that include an increase in fishing capacity?  
b. What requirements must be met in order for an "enterpris e" to be considered eligible for this 
program?  
 
 
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