G/SCM/Q2/CHN/131  
 
21 May 2024 
(24-3889) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
FOLLOW -UP QUESTIONS POSED BY THE UNITED KINGDOM TO REPLIES PROVIDED BY CHINA1  
REGARDING THE 2023 NEW AND FULL NOTIFICATION OF CHINA2 
The following communication, dated and received on 17 May 2024, is being circulated at the request 
of the delegation of the United Kingdom . 
 
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The United Kingdom thank s China for its responses to the UK 's initial set of questions on China 's 
2023 New and Full Subsidy Notification . We would therefore be grateful for any further information 
China can provide on the following clarificatory questions.  
Preferential tax policies in the western regions  
Follow -up to response to question s 2 and 3 . 
In its response to questions 2 and 3, China provided that the Catalogue for Imported Products not 
Subject to Tax Exemption in Domestic Invested Projects; the Catalogue for Imported Products not 
Subject to Tax Exemption in Foreign Invested Projects; and the Catalo gue for Imported Major 
Technical Equipment and Products not Subject to Tax Exemption, have been adjusted through 
"dynamic catalogue adjustments ". 
Question 1  
Could China please  clarify:  
a. What is meant by "dynamic catalogue adjustments "? 
b. What considerations are made when reviewing and undertaking adjustments to the  three 
catalogues, including how China decides wh ich products are to be added or removed from 
the catalogues?  
Preferential tax treatment for enterprises with comprehensive utiliza tion of resources  
Follow -up to re sponse to question 6.  
Question 2  
Could China please : 
a. Provide a link to the latest version of its Catalogue of Comprehensive Use of Resources for 
Preferential Enterprise Income Tax Treatment ? 
 
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  b. Clarify what considerations are made when reviewing and undertaking adjustments to the 
catalogue, including how China decides which use of resources  are to be added or removed 
from the catalogue?  
Preferential tax treatment for energy -saving and new energy vehicles and vessels  
Follow -up to response to question 8 . 
In its response, China provided that the list of vehicle models is periodically reviewed and updated.  
Question 3  
Could China please: 
a. Provide a link to the latest version of its Catalogue of the Models of New Energy Vehicles 
Exempted from Vehicle Purchase Tax?  
b. Clarify what considerations are made when reviewing and undertaking adjustments to the 
catalogue, including how China decides whic h vehicle models are to be added or removed 
from the catalogue?  
In its response, China provided that foreign vehicle models can be included in the Catalogue 
"according to regulations ". 
Question 4  
Could China please clarify what regulations foreign vehicle models must meet to be included in the 
"Catalogue of the Models of New Energy Vehicles Exempted from Vehicle Purchase Tax "? 
Follow -up to response to question 9.  
In its response, China provided that no relevant statistics were available regarding  the number of 
enterprises  which received preferential tax treatment under the scheme during the reporting period.  
Question 5 
Could China please clarify whether it maintains any records on the number of applications it receives 
for preferential tax treatment under the scheme?  
China in its notification also referenced that the vehicle and vessel tax shall be either "allowed a 
reduction by half " or "shall be exempted ". 
Question 6 
Could China please provide  an indication (e.g., as a percentage estimate) of the proportion of  
recipients of preferential tax treatment under the scheme that received a 50% reduction on the 
vehicle and vessel tax , as compared to those receiving a full exemption from the vehicle and vessel 
tax? 
Preferential tax treatment for the public buses and trolleybuses purchased by urban public 
transportation enterprises  
Follow -up to response to question 10.  
Question 7 
Could Chin a please clarify : 
a. Whether its urban public transportation enterprises  can qualify for preferential tax 
treatment under the scheme through the purchase of imported buses or trolleybuses, or G/SCM/Q2/CHN/131  
 
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  is the preferential  tax treatment  made  only available for the purch asing of domestic ally 
made  buses and trolleybuses?  
b. Whether a list or catalogue  exists which sets out  the models of buses or trolleybuses that 
can qualify for preferential tax treatment under the scheme?  If so, please could China 
provide a link ? 
 
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