G/SCM/Q2/CHN/85  
 
27 January 2020  
(20-0637) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
  
SUBSIDIES  
QUESTIONS POSED BY C ANADA REGARDING  
THE NEW AND FULL NOT IFICATION OF CHINA1 
The following communication, dated 24 January 2020 , is being circulated at the request of the 
delegation of Canada . 
 
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Canada kindly asks China to provide  response s to the following question s: 
Question 1  
For Federal  Program 8: Preferential Tax Policies for the Incubators of Science and 
Technology Enterprises , could China explain what are the eligible incubators? Are all science and 
technology incubators eligible?  
Question 2 
For Federal Program 11: Preferential Tax Treatment for Public Infrastructure Projects that 
are Particularly Supported by the State , could China specify whether this program is only 
provided for Chinese  enterprises or if foreign enterprises could also access this program?  
Question 3 
For Federal Program 17: Preferential VAT on Photovoltaic -Generated Electricity , could China 
specify whether this preferential VAT treatment is available only to domestic indu stries?  
Question 4 
For Federal Program 18: Preferential VAT on Hydropower Electricity , could China specify 
whether this preferential VAT treatment is available only to domestic industries?  
Question 5 
For Federal Program 56: Fund for Development of Strategi c Emerging Industries , could China 
please explain what industries are considered strategic emerging industries?  
Question 6 
For Federal Program 58: Reward for Public -Private Partnership Projects , could China expand 
upon the eligibility requirements for this  program, including which types of enterprises are eligible? 
China also refers to this program as a reward, grant, and fiscal appropriation, could China please 
 
1 G/SCM/N/3 43/CHN . G/SCM/Q2/CHN/85  
 
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  clarify if there is a difference between these three characterizations, and what that difference  may 
be? This question also applies to Shanxi Province Program 2: Reward for PPP projects . 
Question 7 
For Federal Program 60: Reward and Support Fund for Restructuring of Industrial 
Enterprises , could China explain how these funds help reduce excess capacity? In addition, to 
whom are funds disbursed, and what activities are covered?  This question is also applicable to 
several sub -central programs, including the following:  
• Hebei Province 2: Rewar d for efforts to remove excessive coal capacity . 
• Hebei Province 17: Reward for efforts to remove steel  overcapacity . 
• Shaanxi Province  6: Fund for overcapacity reduction . 
• Inner Mongolia Autonomous Region  4: Reward for removing overcapacity in the steel 
and coal sectors . 
• Jilin Province 10: Grant for reduce overcapacity in the coal mines sector . 
• Anhui Province  6: Fund for removing overcapacity in the iron and steel and coal 
industries . 
• Shandong Province 3: Reward for overcapacity reduction in steel industr y. 
• Shandong Province 6: Reward for the structural adjustment of industrial enterprises . 
• Henan Province 13: Fund to resolve the overcapacity . 
• Guangxi Zhuang Autonomous Region  3: Reward for the restructuring of industrial 
enterprises . 
• Sichuan Province  24: Reward for eliminating outdated capacity . 
Question 8 
For Federal Program 70: House Property Tax and Urban Land Use Tax Concession for 
Enterprises Involving the Reduction of Excessive Capacities and Structural Adjustment , 
could China please explain if this pr ogram is only open to certain industries, and if so, which 
industries? Also, which industries have made use of the program?  
Question 9 
For Federal Programs 76: Public Subsidy for the Prevention of Aquatic Animal Diseases , 77: 
Subsidy for Scrapping and Dismantling Vessels and for Ship Type Standardization (2017); 
Subsidy Fund for Fishery Development and the Scrapping, Dismantling and Renovating of 
Vessels (2018),  and 78: Subsidy for Improved Aquatic Breed , China provided an amount 
disbursed for each year . Is this a per unit amount? If so, what is the unit China used (per project, 
per company, etc.)?  G/SCM/Q2/CHN/85  
 
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  Question 1 0 
Canada is aware of subsidy programs that were not included in China 's notification . Can China please 
comment on why these programs were not notifi ed or provide further information?  
• Special Fund for Patent Invention  – It is our understanding that t his program 
was established in the Interim Measures for the Administration of Intellectual 
Property (Patent) Special Funds in Shandong Province, which was issued by the 
Department of Finance of Shandong Province.  
• Export Performance Grants  – It is our understanding that t his program was 
established in the Administration of International Market Development Funds for 
Small and Medium -Sized Enterprises Cai Qi No . 467, 2000, which came into force 
on October 24, 2000.  It appears to have been established by the Ministry of Foreign 
Trade and Economic Cooperation  and the program is admini stered at the local levels 
to support the development of small and medium -sized e nterprises . 
Question 11 
Hebei Province 15: Fund for Development of Emerging Industries , could China specify which 
emerging industries are eligible for this program? Are there any further eligibility criteria?  
Question 1 2 
Hebei Province 19: Reward for Companies Listed on the Stock Market , could China clarify the 
industries in which the companies eligible for this reward operate?  
Question 1 3 
Heilongjiang Province 12: Fund for the New Metal Material Industry , could China expl ain what 
is considered the new metal material industry and what enterprises may be eligible?  
Question 1 4 
Jiangsu Province 8: Fund for Eliminating Backward Production Capacity , could China explain 
how this grant will help reduce high pollution capacity. Who  are the eligible enterprises and what 
are the selection criteria?  
Question 1 5 
Jiangsu Province 17: Grant for Compensating the Elimination of Backward Chemical 
Capacity , could China explain what are the eligible enterprises and the selection criteria.  
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