G/SCM/Q2/CHN/112  
 
25 April 2022  
(22-3278) Page: 1/13 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
REPLIES TO QUESTIONS FROM THE UNITED STATES1 REGARDING  
THE NEW AND FULL NOTIFICATION OF CHINA2 
The following communication, dated and received on 25 April 2022, is being circulated at the request 
of the delegation of China . 
 
_______________  
 
 
Question 1  
As noted above, China 's subsidy notification appears to over -report inconsequential 
subsidy programs that should not be notified.  These include programs for poverty 
alleviation, disabled people, HIV drugs, general employment promotion, and sewage 
treatment.  
The programs for benefitting enterprises that employ the handicapped or disabled include 
the following: central government Prog rams 19 Exemption of employment security fund 
for people with disabilities ; Program 21 Preferential vat policies for enterprises that 
employ people with disabilities; and Program 22 Preferential income tax policies for 
enterprises that employ people with d isabilities.  
a. These programs appear to be available to all enterprises. On what basis, are the 
programs specific under Article 2 of the Subsidies Agreement?  
Reply : 
According to the understanding of the SCM Agreement and the principle of making the best efforts 
to impro ve the transparency of trade policies, China has incorporated all the known central and local 
government subsidies into the current subsidy notification. The U.S. holds that the tax preferences 
for anti -AIDS medicines, the VAT preference for enterprises em ploying disabled persons, and fiscal 
support for poverty alleviation should not be included in the subsidy notification on the ground that 
they are not specific. We can leave aside the question whether those policies are specific or not in 
the first place.  Even if they are not specific, we could not understand the logic of the U.S. We note 
that the U.S. indicates at the very beginning of its own subsidy notification that "The United States 
has included certain activities in this notification which arguably are not (or are not always) 'specific 
subsidies ' within the meaning of the Agreement ". Therefore, we cannot understand why the U.S. 
considers the specificity of subsidies as a criteria for subsidies to be included in the notification of 
China. China sugges ts the U.S. adopt a coherent position on the scope of subsidy notification . 
The programs that benefit handicapped or disabled people directly, include the following 
central government programs: Program 23 Preferential tax treatment for imported 
products us ed by people with disabilities  and Program 24 Preferential tax treatment for 
products used by people with disabilities . 
b. How does an enterprise benefit from a VAT exemption granted to a consumer?  
 
1 G/SCM/Q2/CHN/106 . 
2 G/SCM/N/372/CHN.  G/SCM/Q2/CHN/112  
 
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  Reply : 
The beneficiary of the VAT exemption is "selling enterprises ". 
Question 2  
We note that China has made extensive use of government guidance funds to make equity 
investments in various sectors.  The majority owners of these funds normally consist of 
government m inistries and state -owned enterprises which ultimately ensure that funds 
are spent consistent with government policy.  At a press conference last year, the National 
Development and Reform Commission expressed concern that investments in the 
semiconductor in dustry were being made "blindly " resulting in a "waste of resources ". 
Moreover, in a report on below -market financing by the Organization for Economic 
Cooperation and Development (OECD), it was concluded that many of the government 
equity investments made by government guidance funds have not generated a return at 
a level consistent with the expectations of a private investor.  
In light of these facts, why has China not notified the following government guidance 
funds: (1) National IC Fund; (2) Shanghai IC F und; (3) Hubei IC Fund; (4) National IC 
Fund, Phase 2; and (5) Beijing IC Industrial Development Fund . 
Reply : 
The governmental guidance fund is a corporate equity investment fund owned by the Fund 
Company , which is a joint stock enterprise established in accordance with the Company Law. The 
fund's investment management and decision -making are completely market oriented. Governmental 
departments do not intervene or participate in any decision -making of the programs of the fund. As 
the fund ad opts the form of equity investment, its shareholders have clear requirements on financial 
returns of the fund. Therefore, there is no subsidy in any form for the enterprises invested by 
governmental guidance fund . 
Question 3  
Based on public information, af ter several difficult years and serious accounting 
irregularities, in 2017 the China International Trust Investment Corporation (CITIC), a 
state -owned enterprise, stated that it would be buying 807 million new shares and $320 
million of convertible bonds i n Hongqiao Group, also a state -owned enterprise, and 
reported to be the largest aluminum smelter.  Why was this investment not included in 
China 's notification?  As the owner of CITIC, did the Government of China make this 
investment consistent with the usua l investment practice of private investors, especially 
taking into account the existing overcapacity in the industry?  If so, is this analysis public?  
Reply : 
CITIC operates in line with the Company Law and CITIC 's Articles of Association in the interest of its 
shareholders. As an independent market player, CITIC is responsible for their own management 
decisions, profits, and losses. The investment of CITIC is not intervened by the government.  
Question 4 
Based on public information, in 2016 provincial -level authorities in the Xinjiang Uyghur 
Autonomous Region announced a set of preferential policies for aluminum smelters in 
Jimsar County. These policies included the provision of land, tax breaks and grants  to 
certain firms.  Why were these programs not notified?  
Reply : 
Xinjiang Uyghur Autonomous Region did not provide the preferential policies as alleged in the 
question.  G/SCM/Q2/CHN/112  
 
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  Question 5 
Based on public information, Lingyuan  Iron & Steel Co. Ltd., a state -owned steel company, 
announced in 2015 that it had received 790 million RMB from the city government; similar 
reports indicate that the company has been receiving subsidies since 2012.  Why were 
these programs not notified?  
Reply : 
The latest sub-national  subsidy notification submitted by China included subsidy programs related 
to the steel industry. As verified, Lingyuan Iron & Steel Co., Ltd. was granted special funds for air 
pollution prevention and control, reward funds fo r phasing out small coal -fired boilers, etc.  
Question 6 
In March of 2020, the Chinese National Energy Administration (NEA) released 
Announcement 2020/17 (Announcement), which stated the budget for supporting new 
projects in the domestic solar photovoltaic (PV) industry for 2020 would be 1.5 billion 
RMB. The budget reportedly covers production of PV parts and equipment to distribution 
of energy and integration with the Chinese national grid.  Why was this program not 
notified?  Although the budget was lower th an the previous year, why is China continuing 
to subsidize an industry in which there is already excess capacity?  
Reply : 
The allegation in the question is false. "The budget reportedly covers production of PV parts and 
equipment to distribution of energy a nd integration with the Chinese national grid " is not the fact. 
New PV power generation programs are designed for providing subsidies for feed -in-tariffs of PV 
power stations, which is consistent with the international prevailing Feed -in-Tariff (FIT) system and 
shall not be regarded as subsidy on PV m anufacturing industry.  
Question 7 
One of China 's policy banks is the China Development Bank (CDB). As such, its lending 
policies have been consistent with government policy potentially providing preferential 
financing to favoured  enterprises and sectors.  
a. We understand that in November of 2016, the CDB and the Ministry of Industry 
and Information Technology signed a joint agreement, wherein the bank pledged 
to provide $44 billion of investment to support the Made in China 2025 program, 
within the 13th Five -Year Plan Period (2016 -2020). Why was this program not 
notified?  
Reply : 
CDB operates in line with market -oriented principles. The relevant program should not be regarded 
as a subsidy.  
b. According to research in the Journal of Finance in February 2018, 95 perc ent of 
CBD's industrial loans are to state -owned enterprises.  How does CDB price its loans 
to SOEs and what risk premium does it assign to SOEs?  According to this same 
research, 86 percent of provincial level state -owned enterprises have loans 
outstanding with CDB.  This research concludes that "CDB industrial loans help 
SOEs grow larger and sell more but lead private firms to shrink in size and sell 
less." How does China explain this disparate impact of CDB loan provision?  To what 
extent are CDB loans to SOEs non -performing?  
Reply : 
CDB comprehensively evaluates the loan projects from multiple dimensions such as support 
priorities, main risks, expected yield, solvency and credit structure. The loan is priced in line with G/SCM/Q2/CHN/112  
 
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  market -oriented principles. The risk  premium of state -owned enterprises is based on the risk 
parameters of each loan, and is calculated and set by a generally accepted method of the industry. 
CDB advocates fair market competition, respects market -oriented selections, and does not offer 
favou rable policies for state -owned enterprises. There are no differentiated or discriminatory policies 
for private enterprises. Please see the annual report of the China Development Bank for the 
information on non -performing loans.  
c. CDB's subsidiary, CDB Capita l, deals in equity investments. Please describe what 
factors CDB Capital considers when making equity investment decisions?  What is 
the target rate of return on equity sought by CDB Capital? To what extent is this 
target met?  
Reply : 
When making equity inve stment decisions, CDB Capital selects the target company according to the 
expected investment return level, the expected investment risk and whether it matches the return 
level, and the good development prospects of the industry. It also checks the rate of  return based 
on specific situation of each project.  
Question 8 
An examination of the financial statements of various fossil fuel companies in China, such 
Sinopec, PetroChina and CNOOC, indicate the government provided financial 
appropriations totaling RMB  12.4 billion ($1.8 billion) in 2020. Why were these financial 
contributions not included in China 's notification?  
Reply : 
Please provide relevant documents.  
Question 9 
An examination of government budget documents indicate that 128 billion RMB 
($18.3  billion) was spent in 2020 to lower fuel prices. Why was this expenditure not 
included in China 's notification?  
Reply : 
Please provide relevant documents . 
Question 10  
According to government budget documents, RMB 4.4 billion ($628 million) was spent in 
2020 to support oil, gas, and coal exploration funding for various entities.  Why were these 
expenditures not included in China 's notification?  
Reply : 
Please provide relevant documents . 
Question 11  
How many of the normative legal measures referenced in the notification have been 
published in the MOFCOM Gazette as required by China 's Protocol of Accession?  If any 
have been published, please indicate which ones.  
Reply : 
Please visit the official website of MOFCOM.  G/SCM/Q2/CHN/112  
 
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  Question 12 
For the following programs, please explain how national and subnational governments 
define overcapacity, and please explain how funds are distributed among the targeted 
sectors: Beijing Program 1.2 (Fund for Resolving of Overcapacity in Coal Sector and 
Resettlement and Relocation of Employees); Hebei Program 3.2 (Reward and Subsidy to 
Resolve Overcapacity in Coal Industry); Inner Mongolia Program 5.4 (Reward and Subsidy 
Fund to Resolve Overcapacity in Steel and Coal Industries); Anhui Program 12.3 (Reward 
and Subsidy Fund to Resolve Overcapacity in Steel and Coal Industries); Guangxi Zhuang 
Program 20.2 (Special Reward and Subsidy for Restructuring of Industrial Enterprises); 
Yunnan Program 25.1 (Fund to Resolve Overcapacity); and Shaanxi Program 27.3 
(Fund  to Resolve Overcapacity) .  
Reply : 
Overcapacity is determined mainly based on market supply and demand, industry capacity utilization 
rate, industry production and operation conditions, etc. The funds to resolve overcapacity are mainly 
used for diversion an d resettlement of employees in the steel and coal industries to reduce 
overcapacity, and the scope includes economic compensation for layoffs, paying off arrears of wages, 
paying social insurance for diversion and resettlement employees, and providing livi ng allowances, 
etc. For the specific amount, please refer to the subsidy notification submitted by China 
(G/SCM/N/372/CHN).  
Question 13 
Please explain whether the following programs provide support to firms to relocate 
capacity to other regions of China or  other countries: Beijing Program 1.2 (Fund for 
Resolving of Overcapacity in Coal Sector and Resettlement and Relocation of Employees); 
Hebei Program 3.2 (Reward and Subsidy to Resolve Overcapacity in Coal Industry); Inner 
Mongolia Program 5.4 (Reward and Subsidy Fund to Resolve Overcapacity in Steel and 
Coal Industries); Anhui Program 12.3 (Reward and Subsidy Fund to Resolve Overcapacity 
in Steel and Coal Industries); Guangxi Zhuang Program 20.2 (Special Reward and Subsidy 
for Restructuring of Industrial E nterprises); Yunnan Program 25.1 (Fund to Resolve 
Overcapacity); and Shaanxi Program 27.3 (Fund to Resolve Overcapacity) . 
Reply : 
Special funds to resolve overcapacity only provide support the diversion and resettlement of 
employees of enterprises that have withdrawn to resolve over -capacity. The  funds are not used to 
support the relocation of capacity.  
Question 14 
Please explain whether any of the following programs provide support to firms to 
transition steelmaking production technolog ies from the blast furnace/basic oxygen 
furnace method to electric arc furnace method, or other modes of production: Inner 
Mongolia Program 5.4 (Reward and Subsidy Fund to Resolve Overcapacity in Steel and 
Coal Industries); Anhui Program 12.3 (Reward and S ubsidy Fund to Resolve Overcapacity 
in Steel and Coal Industries); Yunnan Province Program 25.1 (Fund to Resolve 
Overcapacity); and Shaanxi Province Program 27.3 (Fund to Resolve Overcapacity) . 
Reply : 
The above funds are not used to support the transition of steelmaking production technologies from 
the blast furnace/basic oxygen furnace method to electric arc furnace method, or other modes of 
production.  
Question 15 
Please explain whether any of the following programs also apply to the aluminum industry 
for each respective Province/Autonomous Region: Beijing Program 1.2 (Fund for G/SCM/Q2/CHN/112  
 
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  Resolving of Overcapacity in Coal Sector and Resettlement and Relocation of Employees); 
Hebei Program 3.2 (Reward and Subsidy to Resolve Overcapacity in Coal Industry); Inner 
Mongol ia Program 5.4 (Reward and Subsidy Fund to Resolve Overcapacity in Steel and 
Coal Industries); Anhui Program 12.3 (Reward and Subsidy Fund to Resolve Overcapacity 
in Steel and Coal Industries); Guangxi Zhuang Program 20.2 (Special Reward and Subsidy 
for Re structuring of Industrial Enterprises); Yunnan Program 25.1 (Fund to Resolve 
Overcapacity); and Shaanxi Program 27.3 (Fund to Resolve Overcapacity) . 
Reply : 
The above programs do not apply to the aluminum industry for each respective 
Province/Autonomous Reg ion. 
Question 16 
Please explain how "high-tech" is defined for purposes of Program 4: Preferential tax 
policies for high tech enterprises . 
Reply : 
Enterprises eligible for tax preference of high -tech enterprises must meet relevant requirements of 
Article 28 of the Enterprise Income Tax Law of the People's Republic of China and Article 93 of its 
Implementing Regulations, as well as the Notice of the M inistry of Science and Technology, the  
Ministry of Finance, and the State Taxation Administration on Amendment and Issuance of the 
Administrative Measures for the Recognition of High -tech Enterprises  (GKHF [2016] No. 32).  
Question 17 
For Program 12: Prefer ential VAT treatment for integrated utilization of resources , what 
are the numbers 1,2,3,4 referencing under the heading of How the subsidy is provided ? 
Reply : 
If the U.S. needs the tax refund ratio corresponding to specific projects involved, please check  the 
VAT Preferential Catalogue of Products and Labour  Services for Comprehensive Utilization of 
Resources . 
Question 18 
Are there any imported vehicles or vessels listed in the Catalogue of the Models of New 
Energy Vehicles Exempted from Vehicle Purchase Tax referenced in Program 15: 
Preferential tax treatment for energy saving and new energy vehicles and vessels?  
Reply : 
Vehicle Purchase Tax is exempted for domestically sold  new energy vehicles. The Catalogue of the 
Models of New Energy Vehicles Exempted from Vehicle Purchase Tax  includes imported vehicles. 
However, no matter domestically made or imported ones, they shall al l meet certain requirements.  
Question 19 
Are the recipients of Program 16: Preferential tax treatment for the public buses and 
trolleybuses purchased by urban public transportation enterprises government agencies?  
If so, why was this program notified?  
Reply: 
Pursuant to Article 9 of the Vehicle Purchase Tax Law of the People 's Republic of China , public buses 
and trolleybuses purchased by urban public transportation enterprises are exempted from the 
Vehicle Purchase Tax. The recipients of this program are urban public transportation enterprises.  G/SCM/Q2/CHN/112  
 
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  Question 20 
As noted in previously years, under Program 27: Preferential tax policies for farming, 
forest, animal husbandry and fishery product projects  distant water fishing enterprises 
are completely exempt from i ncome tax.  Is that correct?  
Reply : 
Please refer to relevant provisions of the Enterprise Income Tax Law . 
Question 21 
What is the normal rate for the resource tax?  What other payments are made to the 
government for the right to mine (Program 31: Preferentia l tax policies on backfilling 
mining and mining resources of depleted mines) ? 
Reply : 
According to Article 2 of the Resource Tax Law , the taxable items and tax rates of resource tax shall 
be governed by the Table of Taxable Items and Tax Rates.  
Question 22 
Please explain why China is notifying a program that provides subsidies to "registered 
poor people " (Program 38: Promoting entrepreneurship and employment of key groups) ? 
Reply : 
Please refer to the previous reply offered by China to this question.  
Question 23 
Does imported machinery qualify for benefits under Program 42: Fund for the 
development of agricultural production ? 
Reply : 
According to the 2018 -2020 Guiding Opinions on the Implementation of Agricultural Machinery 
Purchase Subsidy  issued by the Ministry of Agriculture and the Ministry of Finance, farmers and 
agricultural production and operation organizations can apply for the subsidy when purchasing 
domestic and imported agricultural machinery products eligible for the Subsidy.  
Question 24 
Are any of the subsidies in Program 49: Special fund for foreign economic and trade 
development , linked to exporting? What is "The factor approach "? 
Reply : 
Special fund for foreign economic and trade development clearly stipulates that the fund s hould not 
be used for prohibited subsidies. The support of the fund shall not be directly linked with export 
performance. The factor approach refers to the method of assigning weights or standards to relevant 
factors for fund allocation.  
Question 25 
Why is  natural gas considered renewable energy under Program 50: Special fund for the 
development of renewable energy ? G/SCM/Q2/CHN/112  
 
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  Reply : 
At present, the fund has been renamed as Special Fund for the Development of Clean Energy . 
Question 26 
To whom is the preferential tax t reatment provided under Program 56: Preferential tax 
treatment for environmental protection in urban and rural centralized sewage treatment 
and domestic waste treatment plants  given? If given to a government entity, why is this 
program being notified?  
Reply : 
According to Article 12(3) of the Environmental Protection Tax Law , centralized urban and rural 
sewage treatment and centralized domestic waste treatment plants established according to law, 
which discharge taxable pollutants without exceeding the n ational and local discharge standards, 
are temporarily exempted from environmental protection tax. The subsidy recipients are the 
operators of centralized urban and rural sewage treatment and centralized domestic waste treatment 
plants.  
Question 27 
What is  the legal basis for shutting down for capacity under Program 59: Preferential tax 
treatment on the house property tax and urban land use tax of enterprises engaged in 
capacity reduction and structural adjustment?  What measures are taken to ensure new 
capa city will not be subsequently created?  
Reply : 
Reply: In order to promote capacity reduction, structural adjustment, and industrial transformation 
and upgrading, the Ministry of Finance and the State Taxation Administration issued the Notice on 
Exempting Re al Estate Tax and Urban Land Use Tax for Enterprises Reducing Capacity and Adjusting 
Structure  in September 2018, which stipulates that from 1 October 2018 to 31 December 2020, 
enterprises that suspend production and business in accordance with the policy of reducing over -
capacity and adjusting structure would be exempted from real estate tax and urban land use tax 
from the month following the suspension of production or business within a maximum period of two 
years.  
Question 28 
What type of commercial enterprises are being subsidized under Program 62: Preferential 
tax treatment for relocation from inhospitable areas for poverty alleviation?  If no 
commercial enterprises receive subsidies under this program, why is it included in t he 
notification?  
Reply : 
The reason why China included the subsidies for poverty alleviation has been repeatedly expounded 
in China 's responses to the questions from the U.S. and at the Special Meeting of SCM committee. 
Poverty alleviation subsidies can also be found in the U.S. notifications.  
Question 29 
How is Program 66: Preferential tax policies for enterprises engaged in projects of 
agricultural, forestry, animal husbandry and fishery different than  Program 27 
Preferential tax policies for enterprises engaged in projects of agricultural, forestry, 
animal husbandry and fishery?  G/SCM/Q2/CHN/112  
 
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  Reply : 
Program 27 was notified in the Chapter of Fishery Subsidies.  
Question 30 
Please describe the purpose of providing funds in the form of "whole funds + task l ist" 
(Program 67: Fishery stocks enhancement and fish fries releasing ). What type of items 
might be included on a task list?  
Reply : 
The task list mainly includes the supporting directions of the Subsidy fund for agricultural resources 
and ecological protection. As for detailed information, please refer to the program No.45 of China 's 
subsidy notification at the central government level (G/SCM/N/372/CHN).  
Question 31 
China 's notification indicates that the "Subsidy fund for fishery developme nt and the 
scrapping, dismantling and renovating of vessels " program expired December 31, 2019, 
but that "[s]ome of the funds were provided in 2020. " The notification goes on to state 
that the subsidy fund for 2020 was nearly 8 billion RMB. Did the program  remain in place 
in 2020, or did it officially expire on December 31, 2019? If it did not expire, was a new 
measure issued to continue the program into 2020, and if so was that measure included 
in China 's notification?  
Reply : 
The program expired on 31 Dece mber 2019. Some of the funds were provided in 2020.  
Question 32 
According to the Domestic Refined Fuel Price Reform Upward Adjustment According to 
the System  notice issued on December 31, 2021 (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. In its responses to U.S. 
questions on China 's 2019 Notification, China noted that the program on Domestic Refined 
Fuel Price  Reform Upward Adjustment According to the System  had been repealed. 
However, the system appears to still be in place, having been updated multiple times in 
each of 2019, 2020, and 2021. If the program has been repealed, why does it continue to 
be updated?  Please explain and provide the legal citation for the repealing legal measure. 
If the program is on -going, does China intend to notify it and publish it in the MOFCOM 
Gazette?  
Reply : 
There is no subsidy for fishery in terms of the refined fuel price. The footnotes to the tables in the 
Domestic Refined Fuel Price Reform Upward Adjustment According to the System , published on 
31 December 2021, do not include fishery.  
Question 33 
Are government entities the sole recipients of the grants under Tianjin Programs 2.9 and 
2.10? If so, why is this program being notified?  
Reply : 
The recipients are the parties of building or transforming the sewage treatment facilities.  G/SCM/Q2/CHN/112  
 
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  Question 34 
What ty pes of industries receive benefits under Hebei Programs 3.5, 3.6, 3.8 and 3.9 ? 
Reply : 
Programs 3.5 and 3.6 are related to  industrial design sector . Program 3.8 is related to  the electronic 
information industry, etc.  Program 3.9 is related to  the green development industry and information 
industry, etc.  
Question 35 
What types of industries receive benefits under Shanxi Program 4.5 ? 
Reply : 
The types of industries include the promotion of green manufacturing and technological innovations.  
Question 36 
What is an "economic forest " (Inner Mongolia Autonomous Region Program 5.11 )? 
Reply : 
Economic forest includes fruit forest, practical raw material forest, chemical industry raw mat erial 
forest, medicinal forest, and other economic forest.  
Question 37 
If Jilin Program 7.5  is for the construction of public charging infrastructure, why is it being 
notified? What commercial enterprise is benefitting?  
Reply : 
The subsidy recipients of this Program are construction and operation parties of dedicated and public 
charging infrastru cture in the province that connects to the provincial charging infrastructure 
information platform.  
Question 38 
Under Heilongjiang Program 8.11 , what type of metal is being supported?  
Reply : 
The subsidy under the Program does not provide support based on t he type of metal.  
Question 39 
Are any of the benefits provided under Shanghai Program 9.1  linked to exports?  
Reply : 
The benefits provided under the Program is not linked to exports.  
Question 40 
How does supporting the listing of an enterprise under Shangha i Program 9.16  promote 
speeding up "industrial restructuring "? G/SCM/Q2/CHN/112  
 
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  Reply : 
The Program speeds up the entry of small and medium -sized enterprises into the capital market.  
Question 41 
What is the legal authority for closing down capacity under Jiangsu Program 10.8 ? 
Reply : 
Please refer to Subsidy Notification submitted by China (G/SCM/N/372/CHN).  
Question 42 
What specific activities are supported under Zhejiang Program 11.2 ? Does it incl ude the 
renovation or construction of fishing vessels?  
Reply : 
The Program supports ecological transformation in fishery sector, marine environment and economic 
operation monitoring, etc., excluding the renovation and construction of fishing vessels.  
Questi on 43 
How does subsidizing the construction of fishing boats "control fishing intensity " or any 
of the other listed policy objectives under Zhejiang Program 11.7 ; subsidizing more 
fishing boats would seem to increase fishing intensity?  
Reply : 
The Notice on  Issuing and Distributing the Administrative Measures for Subsidy Funds for Ship Scrap, 
Dismantling and Standardization of Ship Types  (CJ [2015] No. 977) and the Notice on Adjusting the 
Oil Price Subsidy of Domestic Fishery in Zhejiang Province  (ZCJ [2016]  No. 14) are not related to 
the fishing intensity of fishing vessels.  
Since 2009, Hangzhou city of Zhejiang Province has strictly implemented the dual control policy on 
the total number of fishing vessels and the total number of horsepower. Therefore, the  fishing 
intensity will not increase due to the implementation of the subsidy policy. In the meantime, the 
policy has been terminated since 2021.  
Question 44 
Does Fujian Program 13.1  include the construction or renovation of fishing vessels?  
Reply : 
The Program does not include the construction or renovation of fishing vessels.  
Question 45 
How does Fujian Program 13.3 (titled Special Fund for Fishing Ports ) "promote fishery 
scientific innovation "? 
Reply : 
The fund is used for enhancing the infrastructure o f existing fishing ports.  G/SCM/Q2/CHN/112  
 
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  Question 46 
Under Shandong Program 15.2 , does any of the funding go towards building or renovating 
new fishing vessels?  
Reply : 
The Program aims to encourage distant water fishing enterprises to invest in Rizhao, Shandong.  
Question  47 
Does the need for a fishing moratorium indicate that the level of fishing effort needs to 
be controlled?  If not, why not ( Guangdong Program 19.3, 19.13, 19.19 )? 
Reply : 
Fishing moratorium is a seasonal activity conducted mainly in the spawning period of fishes in 
summer.  
Question 48 
Under Guangdong Program 19.17 , what are considered the strategic emerging industries?  
Reply : 
Industries such as new generation of information technology and biomedicine are considered as 
strategic emerging industries. The funds are mainly used for supporting R&D and innovation of 
enterprises.  
Question 49 
Please describe in greater detail what can be considered "new material products " under 
Shannxi Program 27.1 ? 
Reply : 
Key supporting areas include inorganic n on-metallic and composite materials and cutting -edge new 
materials, etc. The Program has now expired.  
Question 50 
Does Dalian City of Liaoning Province Program 32.2  support the purchase or renovation 
of fishing vessels for marine wild capture?  
Reply : 
The P rogram does not support the purchase or renovation of fishing vessels for marine wild capture.  
Question 51 
Does Xiamen City of Fujian Province Program 35.2  finance the purchase or renovation of 
distant water fishing vessels?  
Reply : 
The Program does not finance the purchase of distant water fishing vessels.  G/SCM/Q2/CHN/112  
 
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  Question 52 
What is considered a strategic emerging industry under Shenzhen City of Guangdong 
Province Program 36.2 ? 
Reply : 
Industries like new generation of information technology, green and low -carbo n development and 
digital economy are considered as strategic emerging industries.  
 
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