G/SCM/Q2/CHN/130  
 
18 April 2024 
(24-3237) Page: 1/8 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
REPLIES TO QUESTIONS POSED BY CANADA1 REGARDING  
THE NEW AND FULL NOTIFICATION OF  CHINA2  
The following communication, dated and received on 12 April  2024, is being circulated at the request 
of the delegation of China . 
 
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I. Subsidies at the Central Government Level  
Question 1  
Canada notes that China notified three subsidy programs at the central government level 
related to the fisheries sector:  
• Program 27 – Preferential tax policies for farming, forest, animal husbandry and 
fishery product projects  
• Program 68 – Subsidy Fund for Development of Fishery Industry  
• Program 69 – Other general purpose transfer payment of fisheries  
Howev er, in China's 2021 subsidy notification3, China notified six other central  
government level programs related to the fisheries sector:  
• Program 66 – Preferential tax policies for enterprises engage in project of 
agricultural, forestry, animal husbandry and  fishery  
• Program 67 – Fishery stocks enhancement and fish fries releasing  
• Program 68 – Public Subsidy for the prevention of aquatic animal diseases  
• Program 69 – Subsidy for fishery development and the scrapping, dismantling and 
renovating of vessels  
• Progra m 70 – Subsidy for improved aquatic breed  
• Program 71 – Subsidy for reform in tax and fee on refined oil (for fishery)  
a. Do the additional programs China notified in their 2021 notification still exist?  
Reply :  
The specific contents of the Program 27 - "Preferential Tax Policies for Farming, Forest, Animal 
Husbandry and Fishery Product Projects" in this Notification are same as Program 66 - "Preferential 
Tax Policies for Enterprises Engage in Project of Agricultu ral, Forestry, Animal Husbandry and Fishery" 
in 2021 Notification. The Program 67 and Program 69 in 2021 Notification have now been integrated 
into the Program 68 in 2023 Notification. The Program 68 and Program 70 in 2021 Notification have 
coordinated as Program 69 in 2023 Notification. Program 71 in 2021 Notification is not in 
implementation.  
 
1 G/SCM/Q2/CHN/126  
2 G/SCM/N/401/ CHN 
3 G/SCM/N/372/CHN  G/SCM/Q2/CHN/130  
 
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  Question 2  
Did China provide any subsidies related to the COVID -19 pandemic at the central 
government level for the period covered by this notification?  
Reply :  
The Chinese Government has introduced a series of phased and inclusive tax incentives in response 
to the COVID -19 pandemic.  
In terms of domestic tax policies , in 2020, in response to the COVID -19 pandemic, China timely 
introduced and implement a series of phased and targeted policies for tax cuts and fee reduction, 
gave tax incentives to the production and supply of key guarantee materials for pandemic prevention 
and control, gave tax exemptions to industries and enterprises that are greatly affected by the  
pandemic, and increased tax incentives for individual businesses and small and micro enterprises. 
In 2021, China further optimized and implemented policies for tax cuts and fee reduction, introduced 
new structural policies for tax cuts and fee reduction, strengthened support for small and micro 
enterprises and technological innovation, as well as classified, adjusted, and orderly abrogated 
phased policies introduced during the pandemic. In 2022, China implemented new combined tax 
support policies, adhering  to a combination of phased measures and institutional arrangements, with 
equal emphasis on tax cuts and refund. On the one hand, China continued to implement the policies 
for tax cuts and fee reduction to support the manufacturing industry, small and micr o enterprises, 
and individual businesses, and increased the scope of reduction and application. On the other hand, 
China implemented large -scale VAT retained tax refund.  
In terms of import and export tax policies , in 2020, China introduced a tax policy for  export of 
goods returned due to force majeure of the COVID -19 pandemic. For goods declared for export in 
2020 and re transported into China in their original state within one year from the date of export 
due to force majeure of the COVID -19 pandemic, no i mport tax was levied, the collected export tariff 
was refunded, and the handled export rebate that has been processed was made up. This policy was 
implemented until December 31, 2021.  
Question 3  
Program 3 ( Preferential Tax Policies for High -Tech Enterprise s) specifies that support is 
provided to "enterprises recognized as high or new technology enterprises":  
a. Could China please indicate what criteria is used to categorize an enterprise as a 
"high or new technology enterprise"?  
Reply :  
According to the "Measures for the Administration of the Recognition of High -tech Enterprises"  
(GKFH  [2016] No. 32), high -tech enterprise means the resident enterprises registered within China  
that are engaging in continuous research and development as we ll as transformation of their 
technological achievements in the fields as prescribed in the "High -tech Fields Supported by the 
State", have formed their core independent intellectual property rights and are carrying out business 
activities based on the sai d intellectual property rights. The "High -tech Fields Supported by the 
State" provides a detailed description of several technology categories in eight areas, including 
electronic information technology, biology and new pharmaceutical technology, high -tech service 
industry, new energy and energy -saving technology etc. Relevant information can be found on:  
http://www.mofcom.gov.cn/aarticle/bh/200805/20080505534363.html  
b. Are there any other specific conditions attached to support under this program?  
Reply :  
High-tech enterprises that meet the conditions at their own discretion can apply for and enjoy 
relevant preferential policies without any additional conditions.  G/SCM/Q2/CHN/130  
 
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  Question 4  
Regarding Program 13 ( Preferential VAT Treatment for New Type Wall Material Products ): 
a. Could China please provide more information on the products supported by this 
program, including whether they are destined for residential or commercial uses?  
Reply :  
"Notice of the Ministry of Finance and the State Taxation Administration on Value -Added Tax Policy 
for New -Type Wall Materials " (CS [2015] No. 73) 
(https://www.chinatax.gov.cn/chinatax/n810341/n810765/n1465977/n1466037/c1810429/conten
t.html ) specifies that taxpay ers who sell self -produced new wall materials listed in the " Catalogue of 
New-Type Wall Materials Subject to the VAT Policy of Immediate Refund upon Payment " shall be 
subject to the VAT policy of immediately refunding 50% upon payment. Taxpayers selling 
self-produced new wall materials, whether for residential or commercial purposes, can apply for 
immediate refund upon payment according to regulations as long as they meet the other conditions 
listed in the Catalogue and documents.  
Question 5  
Regarding Progr am 31 (Preferential Tax Policies on Backfilling Mining and Mining 
Resources of Depleted Mines):  
a. Could China please provide more details on the eligibility requirements associated 
with this program?  
b. Could China indicate whether this program was renewed or r eplaced by a new 
program after August 31, 2023?  
Reply to a -b:  
The " Resource Tax Law of the People's Republic of China " stipulates that "a 30% reduction shall be 
given to resource tax on mineral products exploited from mines at the stage of depletion". "Mines at 
the stage of depletion " means mines with a designed service life of more than 15 years, whose 
remaining recover able reserves have dropped to less than 20% of the originally designed recoverable 
reserves or whose remaining service life is not more than five years. A mine at the stage of depletion 
shall be determined on the basis of a single mine subordinate to a min ing enterprise.  
"Announcement on Continuing the Implementation of Preferential Resource Tax Policies " formulated 
and issued by the Ministry of Finance and the State Taxation Administration ([2020] No. 32) 
(https://www.gov.cn/zhengce/zhengceku/2020 -07/03/content_5524006.htm ) stipulates that "From 
December 1, 2014 to August 31, 2023, for the coal replaced through cut and fill mining, the resou rce 
tax thereon shall be reduced by 50%".  
The above preferential policies shall be implemented through the method of "self -determination, 
application for enjoyment, and retention of relevant materials for future inspection". Taxpayers are 
responsible for d etermining whether they meet the conditions for enjoying preferential policies and 
enjoy them after tax declaration, while retaining relevant materials for future inspection.  
In August 2023, the Ministry of Finance and the State Taxation Administration pri nted and issued 
the "Announcement on Continuing the Preferential Policy of Lowering the Resource Tax on the Coal 
Replaced through Cut and Fill Mining " ([2023] No. 36) 
(https://ww w.gov.cn/zhengce/zhengceku/202309/content_6902065.htm ), extending this 
preferential policy until December 31, 2027.  
The above policies are stipulated in the "Resource Tax Law of the People's Republic of China" and 
are currently effective and have not been renewed or replaced.  G/SCM/Q2/CHN/130  
 
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  Question 6  
Regarding Program 46 ( Fund for Energy Conservation and Emission Reduction ): 
a. What are the eligibility requirements associated with this program?  
b. Could China provide information on the maximum amount of funding available for 
an individual grant provided under this program?  
Reply to a -b:  
The relevant content of " Fund for Energy Conservation and Emission Reduction " can be found on: 
https://www.mof.gov.cn/gkml/caizhengwengao/202001wg/202002wg/202005/t20200522_351876
7.htm  
https://www.gov.cn/zhengce/zhengceku/2023 -04/24/content_5752916.htm . 
The specific subsidy amount under this policy will be settled based on the actual situation.  
Question 7  
Program 54 ( Preferential Tax Treatment for Environmental Protection of Specific Mobile 
Pollution Sources ) indicates that support is provided to "taxpayers who own mobile 
pollution sources":  
a. Could China please provide more information on the elig ibility requirements to 
receive support under this program?  
Reply :  
Article 12 (2) of the " Environmental Protection Tax Law of the People's Republic of China " stipulates 
that "The following circumstances shall be exempted from environmental protection tax for the time 
being: taxable pollutants are discharged from motor vehicles, railway locomotives, non -road mobile 
machineries, vessels, aircrafts and other mobile pollution sources.". This is mainly due to the fact 
that in China's current tax system, vehicle  and vessel taxes, car excise duties are levied based on 
the exhaust emissions of automobiles, and finished oil excise duties are levied based on the capacity 
of gasoline and diesel, which reflects the role of tax regulation and economic compensation. 
Therefore, the Environmental Protection Tax Law stipulates that taxable pollutants discharged by 
automobiles and other mobile pollution sources shall be exempted from environmental protection 
tax for the time being.  
Question 8  
This question is in reference to the following programs:  
• Program 56 ( Preferential Tax Treatment on Environment Protection for 
Comprehensive Utilization of Solid Waste ) 
• Program 57 ( Preferential Environmental Protection Tax for Enterprises that are 
Below Pollutant Discharge Standards Prescr ibed) 
a. Could China provide more details on the eligibility requirements of these programs, 
including with regard to the national and local environmental standards, and 
where can these standards can be found?  
Reply :  
Article 12 of the " Environmental Protection Tax Law of the People's Republic of China " stipulates that 
"The following circumstances shall be exempted from environmental protection tax for the time being: 
the solid wastes comprehensively utilized by taxpayers comply with the national and local 
environmental protection standards"; Article 13 stipulates that "Where the concentration value of 
the taxable air pollutants or water pollutants discharged by a taxpayer is lower than 30% of the G/SCM/Q2/CHN/130  
 
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  pollutant discharge standards as prescribe d by the state or the local area, the environmental 
protection tax thereon shall be collected at a reduced rate of 75%. Where the concentration value 
of the taxable air pollutants or water pollutants discharged by a taxpayer is lower than 50% of the 
pollut ant discharge standards as prescribed by the state or the local area, the environmental 
protection tax thereon shall be collected at a reduced rate of 50%". The specific discharge standards 
can be found on the official website of the Ministry of Ecology an d Environment of the People's 
Republic of China ( https://www.mee.gov.cn/ywgz/fgbz/bz/ ). 
Question 9  
The following question is in reference to programs entailing exemptions from China's 
"environmental protection tax", namely:  
• Program 53 ( Preferential tax treatment on environmental protection in agricultural 
production (excluding large -scale breeding) ) 
• Program 54 ( Preferential Tax Treatment for Environmental Protect ion of Specific 
Mobile Pollution Sources ) 
• Program 55 ( Preferential tax treatment for environmental protection in urban and 
rural centralized sewage treatment and domestic waste treatment plants ) 
• Program 56 ( Preferential Tax Treatment on Environment Protect ion for 
Comprehensive Utilization of Solid Waste ) 
• Program 57 ( Preferential Environmental Protection Tax for Enterprises that are 
Below Pollutant Discharge Standards Prescribed ) 
a. Can China please indicate if these tax exemptions are applied automatically or if 
enterprises have to request them? If the latter, what is the process?  
Reply :  
The "Project Cities" here refer to the cities where the central government supports clean heating 
projects in the northern region. Through the central government's special tra nsfer payments to local 
governments, the local government accepts the project funds, and enterprises or industries will not 
directly receive support from the project funds. The "Project Cities" shall formulate specific technical 
routes for renovation accor ding to the relevant national requirements on clean energy heating. Clean 
energy heating can be achieved through electricity, natural gas, geothermal energy, biomass energy, 
combined heat and power generation, centralized heating, etc., and the energy cons ervation 
renovation of existing buildings can be promoted. Enterprises or industries involved in the above 
work may indirectly accept financial support for clean heating projects.  
For the above preferential policies, taxpayers are responsible for determining whether they meet the 
conditions for enjoying preferential policies and enjoy them after tax declaration, while retaining 
relevant materials for future inspection.  
  G/SCM/Q2/CHN/130  
 
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  II. Subsidies at the Sub -Central Government Level  
Question 10  
The following question is in reference to programs related to "electric vehicles", namely:  
• Beijing Municipality Program 1.3 ( Fund for Construction of Charging 
Infrastructures of Electric Vehicles ) 
• Tianjin Municipality Program 2.10 ( Special funds for electricit y demand -side 
management ) 
a. What requirements must be met in order for an "enterprise" to be considered 
eligible to receive a grant or reward under these programs?  
Reply :  
Beijing Municipality Program 3: enterprises whose charging facilities comply with relevant national 
and local standards and regulations, whose business licenses include construction and operation of 
charging facilities and sales of motor vehicle charging, who have charging safety liability insurance 
and signed a safety production manage ment agreement, and whose charging facilities are connected 
to the municipal facility management platform and meet the power access requirements, can receive 
benefits under Beijing Municipality Policy 3 ( Fund for Construction of Charging Infrastructures of  
Electric Vehicles ). 
Tianjin Municipality Program 10: Tianjin special funds for electricity demand -side management 2021 
to 2023 is mainly be used to carry out electricity demand response activities during peak and valley 
periods in Tianjin, in order to bal ance electricity supply and ensure electricity safety during peak and 
valley periods. According to the Implementation Rules for Power Demand Response in Tianjin from 
2021 to 2023, enterprises participating in power demand response must meet the following 
conditions: firstly, the power user located within the administrative scope of Tianjin and submit an 
application for participation in power demand response; secondly, during the execution period, the 
actual daily response volume on the demand response date is greater than or equal to 50% of the 
daily declaration volume; thirdly, after the completion of the demand response execution, submit 
the supporting materials such as the confirmation form of the demand response evaluation results 
and the account stubs o f non -budget units. Enterprises that meet the above conditions are 
considered eligible to receive electricity demand response grant.  
Question 11  
Regarding Shanxi Province Program 4.1 ( Fund for Fishery Resources Conservation ): 
a. What "business entities" are c onsidered eligible under this program?  
Reply : 
The expenditure on fishery resource conservation is mainly used to support the proliferation and 
release of fisheries. It supports the proliferation and release in large rivers, lakes, and reservoirs 
with watershed characteristics, such as the Yellow River, Fen River, Wuxing Lake, Jinyang Lake, 
Xiaolangdi Reservoir, Wanjiazhai Reservoir, Fenhe Reservoir and other water bodies with severe 
resource depletion, helping to improve the structure of biological pop ulations, maintain biodiversity, 
and improve water quality and the ecological environment of water bodies. The provincial 
government will allocate funds in blocks to the cities and counties in the basin according to the factor 
method, and the agricultural and rural departments of the cities and counties will complete the 
proliferation and release tasks.  G/SCM/Q2/CHN/130  
 
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  Question 12  
Jiangsu Province Program 10.23 ( Special Fund for Green Development of Modern 
Fisheries ) lists "enterprises with the ability to process and refri gerate aquatic products" 
as an eligible enterprise.  
a. Does this include those enterprises with the ability to process and refrigerate wild 
marine capture aquatic products?  
Reply :  
The Special Fund for Green Development of Modern Fisheries focuses on supporting the on -site 
processing of bulk freshwater and marine aquaculture products in major aquaculture producing 
counties.  
Question 13  
Jiangsu Province Program 10.24 ( Subsidy for Conservation of Fisheries Resources ) 
specifies eligible enterprises as "of fshore fishing enterprises in compliance with 
international conventions for the conservation of international fisheries resources."  
a. Could China please provide examples of what international conventions this 
program is referring to?  
b. Can China also please sp ecify if this support is solely provided to fishing 
enterprises operating outside of Chinese jurisdiction?  
Reply :  
This policy is consistent with the subsidy target and method of Program 68 in the central subsidy 
notification. In practice, the funds in Jia ngsu Province are used to support conservation for the fishery 
resources and do not subsidize fishing  enterprises  operating outside of Chinese jurisdiction . 
Question 14  
Regarding Fujian Province Program 13.2 ( Special Fund for Marine Service and Fishery 
High Quality Development ): 
a. Is support under this program available to enterprises engaged in marine wild 
capture fishing and fishing related activities? If so, what are the eligibility 
requirements to receive support?  
Reply : 
The support scope of th e fund is as follows: ocean observation and early warning forecasting, fishery 
resource conservation and environmental monitoring, fishery diseases and quality and safety control, 
fishery science and technology promotion, recreational fisheries, comprehens ive law enforcement 
and safety emergency response of marine fisheries, planning investigation and statistical evaluation, 
etc. Enterprises engaged in marine wild capture fishing and fishing related activities are not the 
support target of the special fund.  
Question 15  
Regarding Guangxi Zhuang Autonomous Region Program 20.5 ( Offshore Fishermen 
Reduce their Boats and Switch to Other Production ): 
a. Could China please specify what activities are considered "other production" for 
the purposes of this program?  G/SCM/Q2/CHN/130  
 
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  Reply :  
"Other production" refers to production activities in industries other than fishing, such as animal 
husbandry, working in factory, etc.  
Question 16  
Regarding Hainan Province Program 21.5 ( Subsidy for Reform in Tax and Fee Reform on 
Refined Oil (For Fishery) ): 
a. Could China please specify what is considered a "small fishing vessel" for the 
purposes of this program?  
Reply :  
"Small fishing vessels" refer to marine fishing vessels with a length of less than 12 metres in 
accordance with the " Provisions on the Administration of Fishing Licences ". Please refer to: 
http://www.moa.gov.cn/govpublic/CYZCFGS/202201/t20220127_6387843.htm  
Question 17  
Xiamen City of Fujian Province Program 35.1 ( Special Fund for Marine and Fishery 
Development ) specifies that this subsidy is provided to "eligible enterprises legally 
engaged in marine activities."  
a. What requirements must  be met in order for an "enterprise" to be considered 
eligible to receive a grant or reward under this program?  
Reply :  
The support scope of this program includes: marine strategic emerging industries, marine cultural 
industries, marine ecological civilization, smart oceans, marine finance, marine youth talent 
cultivation, marine industry support system, etc. The project undertaking entity must be an 
enterprise or institution registered in Xiamen with independent legal personality.  
 
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