G/SCM/Q2/CHN/108  
 
7 April 2022  
(22-2846) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
REPLIES TO SECOND SET OF FOLLOW -UP QUESTIONS POSED BY THE UNITED STATES1 TO 
REPLIES2 REGARDING THE NEW AND FULL NOTIFICATION OF CHINA3 
The following communication, dated and received on 7 April 2022, is being circulated at the request 
of the delegation of China . 
 
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We appreciate China's answers to the United States' follow -up questions regarding 
China's 2019  notification but have some additional follow -up questions.  
Question 1  
This question was not answered in our original and follow -up questions: Does China 
accept its obligation to publish in the MOFCOM Gazette all legal measures that establish 
and implement its subsidy programs at all levels of government?  
Reply : 
China has bee n committed to enhancing the transparency of its subsidy policy. China Foreign Trade 
and Economic Cooperation Gazette issued by China 's Ministry of Commerce is an official publication 
for uniformly publishing trade policies. Eighty issues are compiled and distributed every year and 
are published on the website of the Ministry of Commerce, providing email subscriptions, with more 
than 3.9 million clicks on a yearly basis.  
Question 2  
In Question 13 of our original questions, the United States asked: According  to the 
Domestic Refined Fuel Price Reform Upward Adjustment According to the System notice 
issued on 2 December 2019 (and earlier iterations of this program), purchasers of diesel 
fuel in the fishery sector enjoy a preferential price compared to other ret ail purchasers, 
based on a state determined sales price. Does China intend to notify this program and 
publish it in the MOFCOM Gazette? China responded stating: "China has not implemented 
the measure mentioned by the US, and purchasers of diesel fuel in th e fishery sector do 
not enjoy a preferential price compared to other retail purchasers."  
However, we note that China appears to have continued to implement the measure 
throughout 2020, issuing adjustment notices for the program on a near -monthly basis. 
Moreover, the latest Domestic Refined Fuel Price Reform Upward Adjustment According 
to the System notice was just issued by the National Development Reform Commission on 
15 January  2021 ( Price Department of the National Development and Reform Commission, 
Dome stic Refined Fuel Price Reform Upward Adjustment According to the System;  
https://www.ndrc.gov.cn/xwdt/xwfb/202101/t20210115_1264991.html ). Therefore, it 
 
1 G/SCM/Q2/CHN/104.  
2 G/SCM/Q2/CHN/86 (original questions); G/SCM/Q2/CHN/93 (replies); G/SCM/Q2/CHN/97 (follow -up 
questions); G/SCM/Q2/CHN/99 (replies to follow -up questions).  
3 G/SCM/N/343/CHN.  G/SCM/Q2/CHN/108  
 
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appears the program re mains in place. In response to this question, China replied that the 
program has been repealed.  
However, once again, another Domestic Refined Fuel Price Reform Upward Adjustment  
measure was issued on 12  July 2021  
(https://www.ndrc.gov.cn/xwdt/xwfb/202107/t20210712_1290249.html ). We acknowledge that 
the pricing standard has been raised in these most recent measures, but once again, this 
indicates that the underlying program remains in place. Please explain.  
Reply : 
Relevant notices of Domestic Refined Fuel Price Reform Upward Adjustment According to the System 
mentioned in the question were issued in accordance with the Administrative Measure s for Oil Prices. 
As far as the price of refined oil is concerned, China has clarified that there is no subsidy in fishery 
sector.  
Question 3  
In our original questions, this question was not answered with respect to the subs -central 
programs listed below. For each of the sub -central fishing programs identified below, how 
much of the funding is used to: (1) decrease the operation costs of domestic marine 
vessels, (2) decrease the operation costs of distant water vessels, (3) reward distant 
water fishing vess els for bringing catch back to China for processing, (4)  provide 
insurance and other income supplement to fishermen during a moratorium on fishing, or 
(5) support vessel refurbishing? The programs for which this question was not answered 
are: Zhejiang Province (Grant for policy -based fishery mutual insurance; and Fund for 
marine and fishery comprehensive management and industry development); Fuzhou City, 
Fujian  Province (Fund for fishing ports); Shandong Province (Fund for distant water 
fishery  development); Production and living allowance for fishermen during fishing close 
seasons; Fund for aquaculture; and Living allowances for fisherman during fishing close 
seasons); Dalian City of Liaoning Province (Fund for marine and fishery development); 
Qingdao City of Shandong Province (Fund for distant water fishery); Ningbo City of 
Zhejiang Province (Fund for policy -based fishery insurance). In response to asking about 
these programs again in our follow -up questions, China replies that "These sub -centr al 
programs are under verification." We respectfully ask that China answer the question.  
Reply : 
1. Relevant policies of Zhejiang Province: The Grant for policy -based fishery mutual insurance in 
Zhejiang Province is employer liability mutual insurance (pers onal insurance) and fishing boat mutual 
insurance. The key support areas of special funds for marine and fishery comprehensive 
management and industrial development in Zhejiang Province include supporting fishermen to quit 
fishery capture and switch to oth er sector or jobs, ecological transformation in fishery sector, 
protection and utilization of marine resources, and basic investigation of marine and fishery, etc. 
Neither of the above two policies involves the objectives mentioned in the question.  
2. The  special funds for fishing port Fuzhou City, Fujian Province are used for standardization 
construction for fishing port. The funds do not involve the objectives mentioned in the question.  
3. Shandong Province (excluding Qingdao City) has not issued specia l funds for the development of 
distant water fisheries, fishermen production and living allowances during the fishing moratorium, 
or special funds for aquaculture.  
4. The Funds for distant water fishery in Qingdao City of Shandong Province is mainly used to 
encourage the enterprises for distant water fishery to invest in Qingdao City and reward distant 
water fishing vessels for bringing catch back. The amount is not available.  
5. The policy -based fishery insurance special funds of Ningbo City, Zhejiang Pr ovince do not involve 
the objectives mentioned in the question.  G/SCM/Q2/CHN/108  
 
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6. The special funds for marine and fishery development in Dalian City, Liaoning Province do not 
involve the objectives mentioned in the question.  
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