G/STR/Q1/CHN/10  
29 April 2021 
(21-3668) Page: 1/3 
Working Party on State Trading Enterprises  Original:  English  
 
  
STATE TRADING  
QUESTION S POSED BY AUSTRALIA  REGARDING  
CHINA'S NEW AND FULL NOTIFICATION1 
The following communication, dated and received on 29 April 2021 , is being circulated at the request 
of the Delegation of Australia.  
 
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Australia asks the following questions in relation to China's previous notification (G/STR/N/16/CHN  
- G/STR/N/17/CHN) : 
AGRICULTURE  
Question 1  
a) On page 7 of China 's notification (G/STR/N/16/CHN , G/STR/N/17/CHN), under reply A -C, China 
states that for a number of commodities,  including key agricultural commodities such as wheat, rice, 
sugar and cotton,  a portion  of the respective tariff -rate quota (TRQ) may be allocated to enterprises 
other than S TEs. However, the enterprises must have obtained trading rights through registration, 
which involves satisfying certain requirements  and conditions . 
i. Could China confirm  whether portions of the respective TRQs are still being 
allocated to non -STEs, particul arly with regard  to its cotton TRQs , and reconfirm 
the shares allocated to Chinese STEs and non -STEs? 
ii. Can China please explain in detail the requirements and conditions that must be 
met for an enterprise to obtain trading rights through registration ? 
iii. Can C hina explain whether STEs which are allocated a portion of the TRQs are 
required to engage with non -STEs to facilitate imports, given the large share of 
China 's TRQs initially allocated to STEs?  
iv. Has China reviewed the involvement of STEs in China 's TRQs, including a 
reallocation mechanism during the quota year  to avoid underfill , and considered 
a more liberal approach to TRQ  administration to facilitate greater usage of the 
volume under TRQs?  
 (A) If no, can China please explain why such a review o r approach has not 
been considered?  
 
1 G/STR/N/16/CHN - G/STR/N/17/CHN.  G/STR/Q1/CHN/10  
- 2 - 
  Question 2 
b) On page 7, under Reply D, China states that "State trading enterprises are operated  following 
market mechanism . State trading enterprises determine by themselves the import level of wheat, 
maize, rice, sugar, cotton and chemical fertilizer according to the quantity of TRQ that they have 
obtained, and taking into account the domestic supply and the prices of both domestic and 
international markets among other factors ." In China 's response to the same question (o n Page 9 
under Reply D) in its prior notification s (G/STR/N/10/CHN, G/STR/N/11/CHN, G/STR/N/12/CHN, 
G/STR/N/13/CHN, G/STR/N/14/CHN, G/STR/N/15/CHN), China stated that "State trading 
enterprises are operated following market mechanism, with no government interference ". 
i. Could China please explain what changed that result ed in the language 'with no 
government interference ' being removed ? How should this be interpreted by WTO 
Members?  
ii. Could China please explain whether it provides instructions to i ts STEs on the 
importation of  the notified products, in particular  cotton, or any other agricultural 
products?  
iii. Has any Chinese authority, directly or indirectly, officially or unofficially, 
instructed any Chinese STEs, millers or other businesses, to stop or limit 
purchases of Australian cotton, or cotton from any other WTO Member?  
 (A) If yes, has China published a notice of these measures domestically, 
and notified them to  the WTO ? If so, please provide copies of the relevant 
documentation.  
iv. Has any Chines e authority, directly or indirectly, officially or unofficially, advised 
any Chinese STEs, millers or other businesses that their existing or future 
allocation of China 's tariff -rate quota for cotton will depend on whether or not 
they import cotton from Australia?  
 (B) If yes, has China published a notice of these measures domestically, 
and notified them to the WTO ? If so, please provide copies of the relevant 
documentation.  
Question 3 
c) Regarding Table I : Statistical Information , Imports , can China please clarify why the data  
relating to "Import Quantity of State Trading Enterprises", "Average representative domestic  sales 
price", "Average representative domestic sales price" and "Mark -up" is not available?  
i. Will China be in a position to provid e this data in its notification for the 2018  and 
2019 notification period s, and subsequent future notifications?  
INDUSTRIAL PRODUCTS  
Question 4 
a) Regarding Table : State Trading Products and Enterprises (Export) , on page 4, China lists five 
STEs involved in the exportation of coal, including China National Coal Industry Import  and Export 
Corporation (renamed China National Coal Group Corporation in April 2009), China National Metals 
and Minerals Import  and Export  Co. (renamed China Minmetals Corporation in January  2004), 
Shanxi Coal Import  and Export Group Co . Limited, Shenhua Group Corporation Ltd., and Aluminum 
Corporation of China Limited . 
i. Could China confirm  whether these, or other STEs, are also involved in t he 
importation of coal into China?  
ii. Could China please explain why these STEs have not been notified with respect 
to imports, and whether they will be notified in China 's future notifications?  G/STR/Q1/CHN/10  
- 3 - 
  iii. Can China confirm whether formal or informal quota administratio n (noting China 
has no scheduled WTO bound TRQ for coal and has not notified or published any 
formal applied TRQ within China 's bound WTO tariff commitments)  for the 
import ation of coal  is being used to regulate the volume of imports, including 
through the allocation of quotas  to importers, including  state-owned enterprises 
in China ? 
 (A) If yes, could China please explain why these  state-owned enterprises 
have not been notified pursuant  to XVII:4(A)  as STEs ? 
 (B) If no, can China confirm there are no formal or informal quotas on the 
import of coal by state -owned enterprises?  
iv. Noting concerns Australia has raised in other relevant WTO committees regarding 
the cessation of China 's imports o f Australian coal, has any Chinese authority, 
directly or indirectly, officially or unofficially, instructed any Chinese STEs, or 
other businesses, to stop or limit purchases of Australian coal, or coal from any 
other WTO member?  
Question 5  
 
b) With regard to Table II,  and noting China 's concern with regard to protecting the internal 
information of individual enterprises,  can China provide any additional infor mation regarding average 
coal pricing (procurement, domestic sales, export)?  
OVERDUE NOTIFICATIONS  
Question 6 
 
China 's last notification was submitted on 1 0 July 2018, and covers the notifying period 2015, 2016 
and 2017 . Can China please update the Working Party on when it plans to submit the overdue 
notifications for 2018 and 2019?  
 
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