G/SCM/Q2/CHN/60  
 
22 April 2016  
(16-2280)  Page: 1/3  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
QUESTIONS FROM THE EUROPEAN UNION REGARDING 
THE NEW AND FULL NOTIFICATION OF CHINA1 
 
The following communication, dated 21 April 2016, is being circulated at the request of the Delegation of the European Union. 
 
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Question 1 
 4  (PAGE 9) PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN 
INVESTMENT RECOGNIZED AS HIGH OR NEW TECHNOLOGY ENTERPRISES ESTABLISHED 
IN THE STATE HIGH OR NEW TECHNOLO GY INDUSTRIAL DEVELOPMENT ZONES 
Can China please explain what are the sectors/products concerned by "high or new technology 
enterprises"? Can China please provide the rele vant legislation/guidelines on where these 
industries are listed?  Could China please provide a list of the comp anies which have benefitted from this scheme? 
 
Could China clarify if there is a threshold for foreign and Chinese investment to qualify for the preferential tax policy and, if so, what are the thresholds?  
 
Question 2  5  (PAGE 10) PREFERENTIAL TAX POLICIES FOR ENTERPRISES RECOGNIZED AS HIGH 
OR NEW TECHNOLOGY ENTERPRISES ESTA BLISHED IN THE STATE HIGH OR NEW 
TECHNOLOGY INDUSTRIAL DEVELOPMENT ZONES 
Can China please explain what are the sectors/products concerned by "high or new technology 
enterprises"? Can China please provide the rele vant legislation/guidelines on where these 
industries are listed? 
 Could China please provide a list of the companies which have benefitted from this scheme, 
identifying any which have a majority state ownership? 
 Question 3 
 
6  (PAGE 11) PREFERENTIAL TAX POLICIES FOR HIGH OR NEW TECHNOLOGY ENTERPRISES 
Can China please explain the relationship between  this scheme and those referred to above in the 
previous two questions? Can China please explai n what are the sectors/products concerned by 
"high or new technology enterprises"? Is this scheme applicable country-wide and not limited to high or new technology enterprises established in the State high or new technology industrial 
development zones. Do those enterprises established in the State high or new technology 
                                               
1 G/SCM/N/220/CHN-G/SCM/N/253/CHN-G/SCM/N/284/CHN. G/SCM/Q2/CHN/60 
 
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  industrial development zones benefit from this scheme in addition  to those schemes referred to in 
the previous two questions?   Question 4 
 
8  (PAGE 13) PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN INVESTMENT ESTABLISHED IN THE COASTAL ECONOMIC OPEN AREAS AND IN THE 
ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONES 
Can China explain if this scheme relates to Chinese-foreign equity joint ventures? Could China 
clarify if there is a threshold for foreign and Chin ese investment to qualify for the preferential tax 
policy and, if so, what are the thresholds?  
 
Can China please provide a list of what enterprises qualify as "technology-intensive" and "knowledge intensive" for this scheme? What are the sectors/products concerned? 
 
Question 5  
11  (PAGE 17) PREFERENTIAL TAX POLICIES IN THE WESTERN REGIONS 
Can China explain what are the enterprises which are listed in the Catalogue of Encouraged 
Industries in central and Western Regions? Are steel enterprises included in the Catalogue of 
encouraged industries? If so, how many steel en terprises have benefitted from this scheme?  
 
Question 6  
15  (PAGE 21) PREFERENTIAL TAX TREATMENT FOR BUILDING MATERIALS PRODUCTS 
PRODUCED WITH INTEGRATED UTILIZATION OF RESOURCES 
Can China please provide a list of the raw material inputs and the products manufactured from 
those raw materials as specified in the Catalogue of Comprehensive Use of Resources for 
Preferential Enterprise Income tax treatment?   Can China clarify if any steel ente rprises benefit from this scheme? 
 
Question 7  
27  (PAGE 32) PREFERENTIAL TAX POLICIES FOR ENTERPRISES MAKING LITTLE 
PROFITS 
Can China please provide a list of the enterprises which benefit from this scheme? What sectors do 
these enterprises operate in?  
 Can China please clarify what is meant by "little profits" – is there a threshold? Can China please clarify what is the maximum peri od of time an enterprise ma y benefit from this scheme?  
 
Question 8  
33  (PAGE 37)PREFERENTIAL TAX POLICIES FOR THE RESEARCH AND DEVELOPMENT OF 
ENTERPRISES 
Can China please specify what enterprises in what sectors benefit from this scheme?  
 
Can China provide information on the number of steel companies which have benefitted from this scheme?   G/SCM/Q2/CHN/60 
 
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  Question 9 
 34  (PAGE 38) PREFERENTIAL TAX POLICIES FOR ENTERPRISES TRANSFERRING TECHNOLOGY 
Can China please explain what is meant by transfer  of technologies in the context of this scheme? 
Transfers between what parties are concerned?   
Question 10 
 35  (PAGE 28) RESEARCH AND DEVELOPMENT FUND FOR INDUSTRIAL TECHNOLOGIES 
Can China please explain what projects in what sectors/enterprises are covered by this scheme? 
How is a project considered to be "of commonwea lth or public interest"? Are there published 
rules/guidelines and, if so, could China please provide the relevant reference.   
Question 11 
 81  (PAGE 79) SPECIAL FUND FOR THE DEVELOPMENT OF STRATEGIC EMERGING 
INDUSTRY 
Can China please explain what is meant by "strategic emerging industry"? How and where are 
these industries defined? What are the sector s/enterprises which have benefitted from this 
scheme? 
 
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