G/SCM/Q2/CHN/52
17 April 2015
(15-2075)  Page: 1/15
Committee on Subsidies and Countervailing Measures  Original: English
 
SUBSIDIES 
REQUEST FROM THE UNITED STAT ES TO CHINA PURSUANT TO  
ARTICLE 25.8 OF THE AGREEMENT 
The following communication, dated 17 April 2015, is being circulated at the request of the 
Delegation of the United States.  
_______________ 
  As set forth below, the United States hereby requests certain information from China under 
Article 25.8 of the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement) 
relating to support programs granted or maintained  by China for the benefit of its fisheries sector. 
 
In the report that it prepared for China's most recent Trade Policy Review, held in July 2014, the 
Secretariat included information that it had uncovered on 30 support programs for China's fisheries sector.
1 The Secretariat's Report noted that China had not notified any of these support 
programs to the Committee on Subsidies and Countervailing Measures (Committee) and further 
that China could not verify any of the information provided to it by the Secretariat. During the ensuing Trade Policy Review meetings, China re sponded to Members' questions about these 
support programs by stating that it needed more time to identify and verify information regarding 
these support programs. To date, China has not notified any of these support programs under 
Article 25 of the SCM Agreement, nor has it othe rwise provided any further information on these 
programs to Members.  
 
Through its own research and analysis, the United States has uncovered information on additional support programs benefiting China's fisheries sector. To date, China similarly has not notified any 
of these support programs under Article 25 of the SCM Agreement.  
 Beyond the obligations all WTO Members have to no tify their subsidy programs under Article 25 of 
the SCM Agreement, the dire state of the world's fi sheries has led to calls for greater disciplines on 
fisheries subsidies that contribute to overfishing and overcapacity. While reaching agreement on 
such disciplines has been difficult, countries have recognized that an initial step should be greater transparency with respect to the fisheries subsidy programs currently in place. For example, on 
28 August 2014, at the 4
th  APEC Ocean-Related Ministerial Meeting, APEC Ministers agreed to the 
Xiamen Declaration. Paragraph 21 of this Declaration states:  
In light of the Rio+20 outcome document, particularly paragraph 173, we encourage 
APEC members to further improve the transpar ency and reporting of existing fisheries 
subsidies programmes through the WTO, and to  eliminate subsidies that contribute to 
overcapacity and over-fishing, and to refrain from introducing new such subsidies or 
from extending or enhancing existing such  subsidies, without prejudice to the WTO 
Doha negotiations. 
This request for information under Article 25.8 of  the SCM Agreement seeks greater transparency 
from China and is divided into three parts. Part I lists the fisheries support programs set out in the 
report prepared by the Secretariat for China' s 2014 Trade Policy Review and includes some 
additional publicly available information to assist in the identification and verification of the listed 
                                               
1 See, WT/TPR/S/300, page 88, paragraph 3.126, and pages 191-98, Table A3.6. G/SCM/Q2/CHN/52 
 
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  support programs. Part II includes information uncovered by the United States on additional 
fisheries support programs granted or maintain ed by China. Each of the support programs 
identified in Part I and Part II appears to be a "subsidy" within the meaning of Article 1.1 of the 
SCM Agreement, and appears to be "specific" within the meaning of Article 2 of the SCM 
Agreement. Part III sets out the information being requested of China with respect to each support 
program described in Parts I and II.    
1  THE FISHERIES SUPPORT PROGRAMS LISTED IN THE SECRETARIAT'S REPORT FOR 
CHINA'S 2014 TRADE POLICY REVIEW  
1.1  Cooperative Agreement Between China Pelagic Fisheries Association and China 
Minsheng Bank 
Table A3.6 of the Secretariat Report states that "China Pelagic Fisheries Association and China 
Minsheng Bank signed an agreement on strategic financial cooperation in Beijing on 7 January 2013 to improve equipment, production efficiency, technology and comprehensive 
development capacity in the pelagic fisheries se ctor." According to the source cited by the 
Secretariat Report, during the agreement signing ceremony, the Vice Governor of the Minsheng 
Bank stated that "the bank has set up a special unit under the Modern Agricultural Finance SBU, 
Center for Marine Fishing Finance, to provide full-range, professional financial service to marine 
fisheries."   Publicly available information shows that the Ministry of Agriculture ("MOA") and China Minsheng 
Bank signed a Cooperative Agreement between the Ministry of Agriculture and Minsheng Bank 
(Notice 73 ) in 2012. Section 3 of the Annex to Notice 73  indicates that MOA agreed to support 
Minsheng Bank's various projects in fishing indust ry. The projects include, but are not limited to, 
establishing a Center for Fishery Finance, constructing a large wholesale market for aquatic 
products, and developing cold-chain logistic bases.   
1.2  Corporate Tax Relief 
Table A 3.6 of the Secretariat Report states that "the Chinese Government provides corporate tax 
relief in the form of income tax exemptions to Chinese domestically funded deep water fishing enterprises. This exemption means that they are exempt from paying corporate income tax 
(currently levied at 25%) until the end of 2015. Generally, all fisheries projects that attract 
investment to bolster the fishing industry are exempted or given a 50% reduction of corporate income tax. This is applied as long as the enterprise is engaged in the fishing project."  
 
Publicly available information shows that the State Administration of Taxation issued on 13 September 2011, the Notice on Issues regarding Corporate Income Tax of Domestically Funded 
Fishing Enterprises  (Notice 114 ) and the Notice on Implementing Preferential Corporate Income 
Tax Policies for Enterprises involving in Agriculture, Forestry, Animal Husbandry, and Fishery Industry  (Notice on Preferential Corporate Income Tax ). Both Notice 114  and the Notice on 
Preferential Corporate Income Tax  exempt domestically funded and government-certified distant 
water fishing enterprises from corporate income ta xes on income derived from engaging in distant-
water fishing.   
1.3  Tax Incentive to Shipyards 
Table A3.6 of the Secretariat Report states that "tax incentives are provided to shipyards in China 
that build and export fishing vessels. The incentives  are in the form of a five-year-tax holiday and 
a five-year-half-tax policy on the construction of the shipyard and export tax rebates. In addition 
to preferential taxes, preferential credit conditions are provided to shipyards."   1.4  Tariff Cuts on Imported Equipment 
Table A3.6 of the Secretariat Report states that there are "preferential import duties on imported 
equipment used for refitting, building and renova ting vessels fitted with ultra-low temperature 
freezers including tuna longliners."  
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  1.5  Accelerated Depreciation 
Table A3.6 of the Secretariat Report states that  there is "accelerated depreciation for fishing 
vessels to encourage the modernization of fishing fleets." Publicly available information shows that the State Administration of Taxation issued Notice regarding Accelerating Depreciation for Fixed 
Assets (Notice 64 ).  Article 1 of Notice 64  indicates accelerated depreciation for fixed assets of 
enterprises in the vessel building sector.    
1.6  Government Investment to Deve lop New Fisheries and Technology  
Table A3.6 of the Secretariat Report states that  one of the subsidy programs is a government 
investment to develop new fisheries and technology. According to sources cited by the Secretariat Report, "during the country's 10
th five year plan (2001-2005), China invested over 10 million Yuan 
per year on this subsidy type. The total subsidy spent on developing fisheries resources, and 
fishing technology for the five – year plan period is estimated to be over 50 million Yuan (US$7,950,900)."  
 
1.7  National Fisheries Te chnical Extension Station  
Table A3.6 of the Secretariat Report states that "the National Fisheries Technical Extension Station 
was established in 1991 in order to promote the development of fisheries through the introduction 
of advanced technologies and scientific expertise. There are extension agencies throughout the whole economy: in 2014, there were 13,514 fisheries technical extension services, 10,000 more than in 1999."  
 
Publicly available information indicates that the main functions of these Fisheries Technical Extension Stations include promoting new fishery technologies, providing training to fishermen, 
inspecting aquatic products, providing good fingerlings to local fish farms, etc.  
 1.8  Fishing Vessel Renovation  
Table A3.6 of the Secretariat Report states that projects were carried out to "renovate outdated 
fishing vessel to implement domestic safety stan dards and reduce energy consumption." According 
to the source cited by the Secretariat Report, five fishery companies in the Pingtan Comprehensive Pilot Zone Fujian Province received subsidies from the central government, as part of the national 
fishing boats renovation project in 2013. The source also reported, "as many as 56 fishing boats 
were included in the projects, including 53 pelagic fishing boats and three offshore boats. The total 
sum of the investment, in addition to subsidies from the central government, would reach about 
514.3 million yuan."  
 The Pingtan Comprehensive Pilot Zone Economic Development Bureau issued the Notice on 2012 
Central Budget Investment Plan for Marine Fishing Boat Renovation  (Pingtan Notice ) in 2013. 
According to the Pingtan Notice , the Pingtan Comprehensive Pilot Zone received approximately 
RMB 118 million from the central government budget to assist in the construction of marine fish boats. Article 2 of the Pingtan Notice asks the Pingtan local government to show proof to the 
provincial DRC that the cash grants were given to enterprises.  
 1.9   Program to Improve the Efficiency of Aquaculture and Coastal Fisheries Enterprises 
Table A3.6 of the Secretariat Report states that the program exists to "improve the efficiency of 
aquaculture and coastal fisheries enterprises. Support  is for a wide range of activities and includes 
direct assistance for investment. Support to enterprises is limited to a maximum of one-third of 
the cost of the new investment."   
 The Secretariat Report cited the 2013 Jiangsu Provincial Marine and Fishery Special Project 
Application Guide  (Notice 17 ) as the source for this program. Annex 1of Notice 17  shows that a 
wide range of activities are supported under this program. The supported activities range from 
constructing various coastal area fishery bases to improving current fishery equipment. Article 2 of Annex 1 indicates that fishermen and enterprises can receive grants from the government. 
Article 3 further lists the amount of grants given for various supported activities.  
 G/SCM/Q2/CHN/52 
 
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  1.10   Aquatic Breeding 
Table A3.6 of the Secretariat Report states that the aquatic breeding "program has three 
components: 
 
• Seed field capacity development projects. To develop and improve infrastructure related to 
seed production in fisheries, and to purchase equipment necessary for the preservation of genetic materials. Grants range from RMB 800,000 – 1,000,000 per project for a maximum 
of 10 projects province wide. 
 • Seed conservation project. This is to support th e work done in the public interest by certain 
provincial-level aquatic breeding centres. Su pport cannot exceed RMB 250,000 per project 
for a maximum of 20 projects province-wide. 
 • Seed variety update project. To support renovating the genetic varieties of certain 
aquaculture species. Support cannot exceed RMB 200,000 per project for a maximum of 
10 projects province-wide."  
 
Annex 2 of Notice 17  indicates that aquaculture enterprises that meet certain qualifications can 
apply to receive funds to carry out the three components of the program.   1.11   Development and Utilization of Fi sheries Species with Integration of New 
Technologies  
Table A3.6 of the Secretariat Report states that "this program supports the protection of rare 
freshwater fisheries resources as well as the development of potential local and specialty breeds. 
Projects focus on searching for new species using green technology, and the use of information 
systems. Support is limited to a maximum of RM B 500,000 in total of a maximum of 45 projects 
province wide."  
 
Annex 2 of Notice 17  indicates that aquaculture enterprises that meet certain qualifications can 
apply to receive funds to carry out the above program.   
1.12   Fisheries Major Technology Integration and Demonstration Projects  
Table A3.6 of the Secretariat Report states that "fisheries major technology integration and 
demonstration projects are to support the develo pment and marketing of technologies that could 
range from those to process fish products to those to breed multiple species. The funding for each 
project cannot exceed RMB 1,500,000 individually."  
Annex 2 of Notice 17 indicates that aquaculture enterprises that meet certain qualifications can 
apply to receive funds to carry out the above program.   1.13   Aquatic Product Quality and Safety Testing 
Table A3.6 of the Secretariat Report states that, under this program, "grants are primarily 
intended for quality inspection and purchase of samples." Annex 3 of Notice 17  indicates that 
aquaculture enterprises that meet certain qualifications can apply to receive funds to carry out the 
above program.  
 1.14   Aquatic Product Quality Certification Awards 
Table A3.6 of the Secretariat Report states that, under this program, "Awards of RMB 10,000 are 
granted for each certificate earned for healthy aquatic products. RMB 50,000 are granted for each aquatic geographical indication."  Annex 3 of Notice 17  confirms that "awards of RMB 10,000 are 
granted for each certificate earned for healthy aquatic products and RMB 50,000 are granted for 
each aquatic geographical indication."  
 1.15   Export of Aquatic Products with Development Incentives  
Table A3.6 of the Secretariat Report states that, under this program, "export of aquatic products 
whose trademarks are registered overseas will be rewarded with RMB 30,000. Enterprises can G/SCM/Q2/CHN/52 
 
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  apply for multiple grants up to a maximum of RMB 150,000." Annex 3 of Notice 17  confirms that 
"export of aquatic products whose trademarks are registered overseas will be rewarded with RMB 30,000. Enterprises can apply for multiple grants up to a maximum of RMB 150,000."   
1.16   Monitoring and Evalua ting of Marine Economy  
Table A3.6 of the Secretariat Report states that this program "supports the monitoring and 
evaluation of fisheries industry operation and maintenance. Provincial level subsidies amount to a 
maximum of RMB 300,000. Municipal level subsidies amount to a maximum of RMB 100,000." 
Annex 4 of Notice 17  indicates that enterprises that meet certain qualifications can apply for funds 
to carry out the above program.   
1.17   Marine Fishing Vessels Renovation  
Table A3.6 of the Secretariat Report states that , under this program, "during 2013, the provincial 
government intended to provide support to 180 fi shing boats for their renovation. Some 70 vessels 
above 24 meters will be granted RMB 200,000 each; some 90 vessels above 36 meters will be 
granted RMB 300,000 each; some 20 vessels above 40 meters will be granted RMB 450,000 each." Annex 4 of Notice 17  indicates that fishing boats that meet certain qualifications can apply for 
renovation grants.  
 1.18   Standardization of Aquaculture Pond  Construction Projects, Breeding Projects, 
Aquaculture Cages, Closed Recirculation 
Table A3.6 of the Secretariat Report states that, under this program, "the grants are applicable in 
14 cities or districts. The provincial grants canno t exceed 1/3 of enterprises' actual investment. 
The maximum amount for each enterprise cannot exceed RMB 1 million. For each of the 
enterprises, the 2013 grant cannot exceed 120% of the 2012 grant." 
 1.19   Aquatic Breeding, Breeding Demonstration Projects 
Table A3.6 of the Secretariat Report states that "grants provided under this program range from 
RMB 100,000 to 300,000. The grants are limited to projects undertaken in nine cities."   1.20   Standardization of Quality Breeding Projects  
Table A3.6 of the Secretariat Report states that, under this program, "grants of RMB 100,000 will 
be granted to support standardization of quality breeding programs. The program is limited to projects in six cities."  
 
1.21   Guangdong Province Breeding Projects  
Table A3.6 of the Secretariat Report states that  "two subsidies of RMB 1,000,000 each will be 
granted to aquatic breeding farms. 10 provincial aquatic breeding farms will be selected to carry 
out breeding, with support of up to RMB 800,000 each." The Secretariat Report cited 2013 
Guangdong Province Marine Fishery Technologica l and Industrial Development Fund Application 
Guide  as the source for this program. This measure seems to indicate enterprises and government 
institutions can apply for funds to subsidize costs associated with developing high technologies in 
marine fishing.   
1.22   Guangdong Province Seed  Varieties Upgrade Project  
Table A3.6 of the Secretariat Report states that "a RMB 2.4 million annual grant is allocated to 
20 projects engaged in developing fishery seed; each project will receive a grant of a maximum of 
RMB 120,000." The Secretariat Report cited 2013 Guangdong Province Marine Fishery 
Technological and Industrial Development Fund Application Guide  as the source for this program. 
This measure seems to indicate that enterprises can apply for funds to subsidize costs associated with developing high technologies in marine fishing.  
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  1.23   Guangdong Province Insurance Support to Fishermen 
Table A3.6 of the Secretariat Report states that "eligibility is restricted to registered fishermen less 
than 65 years old who operate registered fishing vessels. The type of insurance coverage includes accidental death insurance and property insurance for fishing vessels that have a minimum of 
20 horsepower. The Guangdong Province subsidiz es 25% of the insurance cost and the County 
subsidizes 10% of the insurance cost." China's Insurance Regulatory Commission Guangdong Bureau issued the Measure on Managing Special Funds on Fishery Insurance Subsidy. This 
measure indicates that the Guangdong government will subsidize insurance premiums for qualified 
fishing boats and various other types of insu rance premiums in the fishing industry.  
 1.24   Improve Safety Levels in Fishing Industry 
Table A3.6 of the Secretariat Report states that "the project is intended to improve safety levels in 
the provincial fishing industry and protect the sa fety of individual fishermen. The program has 
three key areas of focus:  
 
• Fishing vessel life rafts: Each fishing vessel of more than 100 horsepower will be granted 
RMB 2,000 per vessel to purchases and upgrade life rafts. 
 
• Automatic Identification Devices: Fishing vessels of more than 60 horsepower will be 
granted RMB 1,800 per vessel to purchase and upgrade AID systems. 
 
• Intelligent Identification Devices: Full cost will be covered for certified fishing vessels."  
 
Shandong province issued the Measure on Managing Shandong Provincial "Safe Fishery Industry" 
Special Fund and the Shandong Province Application Guide on "Safe Fishery Industry".  These 
measures seem to indicate that the Shandong government provides grants to fishing boat owners. The purpose of the grants is to assist with technology upgrades that could enhance the safety 
levels of fishing boats in Shandong.  
 1.25   Construction of Fisheries Facilities  
Table A3.6 of the Secretariat Report states that "provincial support of RMB 2 million per project 
will be granted for the construction of five fisheries facilities. Beneficiaries should be provincial-
level large enterprises with registered capital of not less than RMB 5 million and annual production of more than RMB 30 million." The Secretariat Report cited the 2013 Hubei Province Agricultural 
Modernization Special Fund Application Guide (Hubei Application Guide) as the source for this 
program. According to Annex 4 of Hubei Application Guide , enterprises that meet certain 
qualifications and large state-owned fishing facilities can apply to receive grants for the 
construction of fisheries facilities. The overall goal of this program is to "upgrade overall fishing 
production capacity" and "significantly enhance the competitiveness of aquatic production systems and modern fishing industrial system."   
1.26   Fish Pond Reconstruction Project  
Table A3.6 of the Secretariat Report states that "provincial support for the reconstruction of 90 
standardized fisheries ponds that meet certain government requirements. Pingyuanhu Area has a 
limit of 50 projects with funding of RMB 600,0 00 per project. Qiukang area has a limit of 
40 projects with funding of RMB 250,000 per project. Eligible enterprises must be legally certified 
at provincial government level or above. Recons truction area must not be less than 500 acres." 
According to Annex 4 of Hubei Application Guide , fishing facilities that meet certain qualifications 
can apply for funds to receive grants to renovate fishing ponds.   1.27   Aquatic Breeding Base Construction Project  
Table A3.6 of the Secretariat Report states that "provincial support of RMB 300,000 for 25 projects 
that meet the production requirements that ex ceed aquatic breeding requirements. Eligible 
enterprises must have breeding production of more than RMB 1 million per year." According to 
Annex 4 of Hubei Application Guide , enterprises that meet certain qualifications can apply for 
grants to breed good aquatic species.    G/SCM/Q2/CHN/52 
 
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  1.28   Eco-efficient Fisheries Model 
Table A3.6 of the Secretariat Report states that "eight eco-efficient fisheries projects will be funded 
if they meet certain provincial requirements on usage of high-efficiency and eco-friendly breeding 
models. Funding will be a maximum of RMB 250,000 per project." According to Annex 4 of Hubei 
Application Guide , enterprises that meet certain qualifications can apply for grants to build high 
efficient and eco-friendly fishing breeding bases. The overall goal of this program is to "upgrade 
overall fishing production capacity" and "significantly enhance the competitiveness of aquatic 
production systems and modern fishing industrial systems."  
 1.29   Duty-Free Importation of Aquatic Breeds 
Table A3.6 of the Secretariat Report states that importation of aquatic breeds are duty free based 
on "geographic location; coverage; breeding type; annual production capacity; technical 
capacity."
2 Publicly available information indicates that the Ministry of Finance and State 
Administration of Taxation issued 2003 Import Duty Free Plan for Seeds, Breeding Stocks, 
Fingerlings, and Non-Profit Wildlife Species. This measure seems to indicate that importation of 
aquatic breeds are duty free.   
 
1.30   Rehabilitate Marine Fisheries  
Table A3.6 of the Secretariat Report states that "since 1999, in an effort to rehabilitate marine 
fisheries resources covering areas north of the 12th parallel, the Hainan provincial marine and fishing department has imposed a fishing moratorium. A total of 9,007 registered fishing vessels 
have been affected. As a result, the provincial bureau has allocated RMB 600,000 in subsidies for 
fishermen to make up for loss of income  while the ban is still in place."  
 
According to an article published on the Hainan provincial government's website, each fisherman 
received cash grants from the Hainan government as compensation for loss of income as a result of the ban.  
 
2  ADDITIONAL INFORMATION ON SUPPORT FOR CHINA'S FISHERIES SECTOR  
Publicly available information indicates that China maintains additional support regimes for its 
fisheries sector as detailed below.  
 
2.1  12
th Five Year Plans for the Fishery Industry  
a. Zhejiang Province 12th Five Year Plan Fishery Development Plan , Zhejiang Provincial 
Development and Reform Commission and Zhejiang Provincial Ocean and Fisheries 
Bureau, Zhefagaiguihua [2011] No. 170 (14 Feb 2012)  
 Section 5 of this 12th FYP outlines several major fishery projects that Zhejiang 
government is implementing. These projects include:  
 
• Investing approximately RMB 1.822 billion to renovate and improve old fishing 
boats and make old fishing boats safer and more efficient, thus achieving the 
goal of building a modern marine fishing fleet  
• Investing approximately RMB 5 billion to construct modern fishery industrial 
bases, focusing on building high standard ponds, new aqua cages, water and 
electricity infrastructure for the fishery industrial bases   
• Investing RMB 2.1 billion to build and renovate distant water fishing boats, build 
comprehensive distant water industrial bases, and explore new fishing grounds 
• Supporting the expansion of leading fishery enterprises 
 
b. Fujian Province 12th Five Year Plan for Fishery Development , Fujian Provincial Ocean and 
Fisheries Bureau (June 2011)  
                                               
2 This program may be a successor program to the fo llowing program previously  notified by China: 
Preferential tax policies on imports of seeds (seedlings) , breeding stock (fowl), fish fries (breeds) and wild 
animals and plants kept as breeds during the pe riod of the "Eleventh Five-Year Plan".  (See,  
G/SCM/N/155/CHN, G/SCM/N/186/CHN; 21 October 2011; p. 91.) G/SCM/Q2/CHN/52 
 
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  Section 7.2 of this 12th FYP outlines policies for supporting fishery development by Fujian 
provincial government. Examples of support are: 
• Expanding investment in the renovation of fishing boats and encouraging fishing 
enterprises to upgrade the technology of their fishing boats  
• Supporting processing enterprises increases their financial capabilities and 
provides grants and rewards to assist these enterprises  
• Increasing subsidized loans for leading enterprises and cultivating major 
projects on processing of aquatic products  
• Providing grants to leading enterprises designated as famous brands 
 
c. Shandong Province 12th Five Year Plan for Fishery Development , Shandong Provincial 
Ocean and Fisheries Bureau  
Section 6.2 of this 12th FYP lists various policies for supporting fishery development by 
Shandong provincial government. Examples of the support are: 
• Expanding efforts for providing financial support for fishery resource restoration, 
standardizing and renovating fish ponds, safe fishery projects, and distant water fishery  
• Expanding support for modern fisheries 
• Encouraging and supporting advanced fishing enterprises to become publicly 
traded 
 
2.2  Other Plans to Develop Marine Fisheries Sector  
a. Ministry of Agriculture Opinions on Promot ing Sustainable and Healthy Development Of 
Marine Fishery Industry , Ministry of Agriculture, Nongyufa [2012] No. 30 
(7 November 2012)  
According to section 4 and 6, the central government will "strength distant marine 
fishery capacity" and "policy supports for distant marine fishing". For example, the 
central government will implement subsidy and preferential tax policies for distant 
marine fishing and further strengthen policy supports for monitoring and exploring distant marine fishery resources, renovating  fishing boats, building fishery bases, 
developing and processing fishery products and markets. It will also increase 
investments in distant fishing technology and encourage domestic to move to distant 
marine fishing.  
b. State Council Opinions on Promoting Sustainable and Healthy Development of Distant 
Marine Fishery Industry , State Council, Guofa [2013] No. 11 (25 June 2013) ( State 
Council No. 11 ) 
In section 7 of this measure, the central government instructs all levels of governments 
to further expand its financial support for marine fisheries sector. Examples of support 
include: 
• Adding the fishing industry to those industries eligible for the preferential 
provision of water, electricity, and land  
• Perfecting fuel subsidies 
• Expanding support for fishery technology innovation and transformation 
• Perfecting support for fishery insurance 
 
Governments in Guangdong have issued measures to implement State Council No. 11. 
According to section 2 of Guangdong Province Opinions on Upgrading Marine Fishery 
Industry, Yuefu [2013] No. 67, Guangdong government's main objectives in developing 
the marine fisheries sector include: 
• Implementing central government support policies 
• Supporting qualified enterprises to establish distant fishery bases in the Indian 
ocean and Pacific Ocean, and actively developing high sea fishing G/SCM/Q2/CHN/52 
 
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  • Actively seeking central government funds to support the construction of 
healthy aquaculture demonstration farms 
• Employing central government funds for marine fishing boats renovation  
 
According to Shenzhen City Temporary Measure on Agriculture Development Fund 
Supporting Marine Distant Fishery, Shenjingmaoxinxihaiyangzi [2014]  No. 22, Shenzhen 
government's support policies to develop marine distant fisheries include: 
• Providing various grants to qualified enterprises in Shenzhen for constructing 
and buying distant marine fishing boats 
• Providing grants to enterprises to subsidize the transportation cost that is 
associated with shipping back marine products caught offshore 
• Providing grants to enterprises for building fishery product processing facility  
 
c. Shandong Province Opinions on Further A ccelerate Distant Marine Fishery Industry, 
People's Government of Shandong Province, Luzhengbanfa [2007] No. 76 
(26 Sept 2007)  
According to section 4 of this measure, the Shandong government instructs local 
governments in Shandong to expand investment and support for the distant marine 
fisheries industries. Examples include: 
• Providing financial and policy support for leading enterprises in distant marine 
fishery sectors  
• Continuing to provide interest subsidies to enterprises that meet certain 
qualifications in the marine fishery sector for the purpose of fishing boat construction and renovation 
• Subsidizing interests for loans that fund mid and long term fishery cooperation 
projects 
 
d. Shandong Government Opinions regarding Accelerating Building "Maritime Granary" , 
People's Government of Shandong Province, Luzhengbanfa [2014] No. 49 (4 Jan 2015)  
Section 5 of this measure lists policies by Shandong government in support of 
developing the marine fisheries sector. These policies include: 
• Adding the fishing industry to those industries that enjoy the preferential 
provision of water, electricity, and land  
• Supporting fishing enterprises that meet qualifications to become publicly 
traded enterprises 
• Working with financial institutions to provide loans and other credit support for 
major government fishery projects 
• Encouraging all levels of the government to hold shares in order to increase 
financing for fishery companies 
• Actively supporting development of fishery insurance 
• Supporting export of local aquatic products 
 
e. Zhejiang Province Measures on Funding Distant Marine Fishery Project,  Zhejiang 
Province Department of Finance and Zhejiang Province Ocean and Fishery Bureau, 
Zhecainong [2011] No. 28 (17 Feb 2011)  
Chapter 2 of this measure details various suppo rt Zhejiang provides to enterprises in the 
distant marine fisheries sector. They include: 
• Providing grants to assist with renovation and upgrading of marine fishing boats  
• Providing grants to explore new offshore fishing grounds and new fishing 
species  
• Providing grants to educate distant marine fishermen  
• Providing grants to encourage building distant marine bases  
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  f. Fujian Province Nine Measures regarding Supporting and Furthering Marine Economy , 
People's Government of the Fujian Province, Mingzhen [2012] No. 43 (15 August 2012) 
(Fujian No. 43 )  
In this measure, the Fujian government describes policies for supporting the 
development of the marine economy.  Examples of policies include: 
• Between 2012 and 2015, the Fujian government will budget at least RMB 
1 billion annually to be used to support the development of modern marine 
fishery, modern marine services, and marine technology innovation, etc.  
• Implementing various preferential tax policies for fishery enterprises 
• Providing grants to enterprises in the distant marine fisheries sector 
• Providing grants for buying large fishing boats 
 
The Fujian government has issued several measures to implement Fujian No.43. 
Measures on Managing Support Fund for Fujian Marine Economy Development, 
Application Guide for 2013 Annual Second Batch Support Fund for Fujian Marine 
Economy  and Guide for Applying Fund for Developing Fujian Marine Economy  indicate 
that the Fujian government provides interest subsidies to enterprises for constructing 
and buying large fishing boats. In addition , Fujian also provides various grants to 
enterprises involved in the marine economy. The purposes of these grants include, but are not limited to, rewarding enterprises which receive famous brand designations, building fishery product storage facilities and aquatic product wholesale markets, etc.  
g. Fujian Province Six Measures regarding Accelerating Distant Marine Fishing, People's 
Government of Fujian Province, Mingzhen [2014] No. 36 (4 August 2014)  
In this measure, the Fujian government states policies for developing the distant marine 
fishery industry. Examples of policies include: 
• Providing interest subsidies to distant marine fishing enterprises for constructing 
and buying large fishing boats 
• Providing grants to develop advanced technology fishing equipment and fishing 
boats for distant marine fishing 
• Encouraging enterprises to develop distant marine fishing  
• Providing grants to enterprises to subsidize the transportation cost that is 
associated with shipping back marine products caught offshore 
• Subsidizing premiums for fishery insurance  
 
2.3  Support for Fishing Boats  
a. Fujian Province Notice regarding 2014 Central Government Budget for Marine Fishing 
Boats Renovation , Fuzhou Development and Reform Commission and Fuzhou Ocean and 
Fishery Bureau (29 Sept 2014) 
According to this measure, the central government appropriated approximately RMB 42 
million to several enterprises in Fuzhou city for renovating distant marine fishing boats.  
b. Guangdong Province Public Announcement on Distant Marine and Nansha Fishing Boat 
Renovation Projects , Guangdong Ocean and Fishery Bureau (18 Dec 2014)  
This measure lists several fishing boat renovation projects in Guangdong province. 
According to it, various fishing enterprise s can apply for funds ranging from RMB 1.6 
million to RMB 8 million per enterprise to build new fishing boats.  
c. Zhejiang Province Notice on Transforming and Upgrading Marine Fishing , Zhejiang 
Department of Finance and Zhejiang Ocean and Fishery Bureau, Zhecainong [2012] No. 
105 (4 May 2012) 
According to this measure, Zhejiang province provides grants to enterprises or 
individuals for upgrading fishing boats.  G/SCM/Q2/CHN/52 
 
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  d. Qingdao City Notice on Managing Funds for Distant Marine Fishery Development , 
Qingdao Department of Finance and Qingdao Ocean and Fishery Bureau, Qingcainong [2013] No. 17 (14 June 2013)  
According to this measure, the Qingdao city government provides grants to enterprises 
that meet qualifications for constructing new distant marine fishing boats. 
2.4   Support for Technological Upgrade in Fishery Industry  
a. Long Term Technology Development Plan in Fishery Sector (2006-2020 ), Ministry of 
Agriculture  
In this measure, the Ministry of Agriculture lays out major long term goals and plans for 
developing a modern fishery industry. Section 4.2 calls for "increasing investment in fisheries science and technology." More generally, the measure establishes a policy to: 
"integrate various existing capital investments and special funds, focusing on 
enhancing indigenous scientific and technological innovation. All level of fishery administrative departments shall actively seek to increase local 
financing of the fisheries science and technology and strength works on 
scientific and technological innovation and transformation, at the same time, encourage and guide enterprises increase R&D investment."  
b. Guangdong Province Measure on Managing Special Fund on Fishery Quality and Safety 
Inspection System , Guangdong Department of Finance and Guangdong Ocean and 
Fishery Bureau, Yuecainong [2007] No. 314 (21 Sept 2007), 2014 Guangdong Province 
Application Guide for Special Fund on Fishery Quality and Safety Inspection System , 
Guangdong Department of Finance and Guangdong Ocean and Fishery Bureau, 
Yuehaiyuhan [2014] No. 831 (17 Oct 2014), and 2015 Guangdong Province Application 
Guide for Special Fund on Fishery Quality and Safety Inspection System , Guangdong 
Department of Finance and Guangdong Ocean and Fishery Bureau, Yuehaiyuhan [2015] 
No. 82 (30 Jan 2015) 
Guangdong province published this measure to manage the applications for its special 
fund on constructing a provincial quality and safety inspection system for fishery 
products. For this special fund, it appears that government institutions and private enterprises that meet certain qualifications can apply for funds to subsidize the cost that is associated with building various fishery products quality and safety inspection 
systems. For example, aquatic product wholesale market and logistic private enterprises 
can apply to receive funds to build laboratories that have comprehensive aquatic product identification systems.   
c. Guangdong Province Measure on Managing Special Fund on Constructing Quality Aquatic 
Breeding System , Guangdong Department of Finance, Ocean and Fishery Bureau, 
Yuecainong [2014] No. 143 (14 June 2014)  
Guangdong province published this measure to manage a special fund for constructing a 
quality aquatic breeding system. For this special fund, it appears that the Guangdong government provides funds to qualified private enterprises, research institutions, and government enterprises for costs that are associated with cultivating quality aquatic 
fingerlings, transforming production capacity technologies, and managing an aquatic 
breeding production information platform.  
d. 2015 Guangdong Province Application Guide for Special Fund on Developing a Deep 
Water Cage Industry, Guangdong Department of Finance and Guangdong Ocean and 
Fishery Bureau, Yuehaiyuhan [2015] No. 66 (28 Jan 2015)  
Guangdong province published this measure to manage the application process for its 
special fund for developing a deep water cage sector. It appears that qualified private 
enterprises and government institutions can receive funds from the government for building deep water cage systems.  G/SCM/Q2/CHN/52 
 
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  e. Fujian Province Measure on Managing Spec ial Fund on Constructing Marine Fishery 
Technology Special Fund, Fujian Department of Finance and Fujian Ocean and Fishery 
Bureau, Mingcainong [2015] No. 74 (16 June 2013)  
According to this measure, the Fujian government maintains a special fund that assists 
with the development of new technology, breeding varieties, feed, drugs for fish and 
machinery in the fishery industry. It appears that qualified private enterprises can apply for the funds to develop new technologies for aquaculture, research and develop marine 
resources, develop new fishery varieties, and train fishermen, etc.  
f. Fujian Province Measure on Managing Special Fund on Fishery Industry Structural 
Adjustment, Fujian Department of Finance and Fujian Ocean and Fishery Bureau, 
Mingcainong [2014] No. 62 (23 July 2014) 
This measure indicates that fishery enterprises can receive funds from the Fujian 
government for developing highly efficient and eco-friendly breeding varieties and modern fishery facilities. In addition, funds are provided to fishing enterprises for 
improving aquatic fingerling production infrastructure and expanding the operation on 
breeding new varieties.  
g. Zhejiang Province Measure on Managing Ma rine and Fishery Technology Demonstration 
and Promotion Project and Fund , Zhejiang Department of Finance and Zhejiang Ocean 
and Fishery Bureau (2 May 2013)  
This measure indicates that qualified enterprises and government institutions can receive 
grants from the Zhejiang government to subsidize costs that are associated with 
improving various technologies in the fishing industry.  
2.5  Fishers Insurance Support  
a. Nation Wide Fishery Insurance Development Plan 2011-2015, Ministry of Agriculture, 
Nongbanyu [2012] No. 83 (9 July, 2012)  
In this measure, MOA sets out major plans and goals for developing a nationwide fishing 
insurance industry. Section 1.4 of this plan states that MOA has appropriated 
approximately RMB 10 million annually to carry out a Fishery Mutual Insurance Premium 
Subsidy Pilot Program. Section 4.2 of this plan indicates that the central government will expand the scope of its insurance premiu m subsidy program. Further, the central 
government encourages local governments to increase support for subsidizing fishing 
insurance premiums.  
b. Zhejiang Province Measure on Managing Special Funds on Fishery Mutual Insurance 
Subsidy , Zhejiang Department of Finance, Zhecainong [2012] No. 55 (9 March 2012) 
This measure indicates that the Zhejiang government will subsidize insurance premiums 
for fishing enterprises or individuals who are also members of Zhejiang Fishery Mutual Insurance Association.  
2.6   Support for Leading Enterprises  
a. Opinion of the State Council on Supporting Agricultural Industrialization Dragon Head 
Enterprises , State Council, Guofa [2012] No. 10 (6 March 2012) ( State Council No. 10 )  
According to this measure, it appears that leading enterprises in the agricultural sector, 
which includes aquaculture sector, receive various supports from the government. 
Examples of support include: 
• Duties are exempt for importing advanced equipment if the enterprises 
participate in agricultural processing projects that are encouraged by the 
government  
• Preferential taxes for buying equipment that are environmental friendly and G/SCM/Q2/CHN/52 
 
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  save energy  
• Rewarding leading enterprises that are designated as famous brands 
 
It appears that both Shandong and Fujian province implement State Council No. 10.  
• Shandong Province Opinion on Further Supporting Agricultural Industrialization 
and Developing Dragon Head Enterprise Luzhengfa [2012] No.39 and Shandong 
Province Notice on Implementing 2014 Provincial Financial Support for 
Agricultural Industrialization, Lunongcaizi [2014] No. 37 seem to indicate that 
qualified aquaculture enterprises receive various support from the Shandong government.  Examples of support include subsidies for buying certain equipment, grants for receiving famous brand designations, and preferential 
treatment on interest for loans.  
 • Fujian Province Measure on Managing Special Fund for Supporting Agricultural 
Industrial Dragon Head Enterprises  seems to indicate that qualified aquaculture 
enterprises receive various support from the Fujian government. Examples of support include grants to buy equipment, interest subsidies, and rewards for 
achieving results in certain areas such as increasing farmers' income.  
 
b. Shantou City Preferential Policies for Supporting Fishery Dragon Head Enterprise , 
Shanfuban [2004] No. 108 (26 July 2004)  
This measure indicates that leading enterprises in the fishing industry in Shantou City 
enjoy various supports from the Shantou government. Examples of support include grants, interest subsidy, and preferential tax treatments.  
2.7  Support for Strategic Emerging Industries in Marine Economy  
a. Notice on Promoting Regional Demonstrative Innovative Developments in Marine 
Economy, Ministry of Finance and State Oceanic Administration, Caijianhan [2012] 
No. 12 (11 May 2012) ( MOF No.12 ) 
The Ministry of Finance and State Oceanic Administration issues this measure for the 
purpose of developing 'strategic emerging industries' in marine economy sector. According to the Preamble of MOF No. 12,  the central government supports the launch of 
Marine Economy Innovation Development Demonstration Projects by several regions 
("Demonstration Project"). The central government will support the launch through the 'strategic emerging industries' special fund and several funds for marine economy. 
Section 3 of the measure indicates that the central government will appropriate the 
funds to local governments.  Section 2.2 asks provinces that are conducting the Demonstration Project to use multiple methods, including grants, interest subsidies, and 
loan guarantees, to attract investments in marine economy industry.  
Governments in Guangdong, Shandong, and Fujian all have issued measures to launch 
the Demonstration Project and implement MOF No.12 .   
• According to Guangdong Province Measure on Managing Marine Economy 
Innovative Development Demonstration Project and 2014 Guangdong Province 
Guide for Applying Marine Economy I nnovative Developm ent Demonstration 
Project , Guangdong will use the central government's special funds for 'strategic 
emerging industries' in the marine economy to subsidize qualified enterprises 
for costs associated with developing various innovative projects in the marine economy sector. One major area that the Demonstration project in Guangdong 
focuses on is to develop the marine aquaculture industry.  
 • According to Article 2 of Shandong Province Measure on Managing Special Fund 
for Marine Economy Innovative Development Demonstration Project, Lucaijian 
[2013] No. 52 (2013), Shandong will combine its own provincial funds and the 
central government's special funds for 'strategic emerging industries' in the marine economy to launch the Demonstration Project in Shandong. Also, it G/SCM/Q2/CHN/52 
 
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  appears that enterprises that meet certain qualifications can receive the funds 
and interest subsidies from the Shandong government to develop various innovative projects in the marine economy sector. One major area that the Demonstration project in Shandong focuses on is developing the marine 
aquaculture industry.  
 
• According to Fujian Province Measure on Managing Special Fund for Marine 
Economy Innovative Development Demonstration Project, Fujian will use the 
central government's special funds for 'strategic emerging industries' in the marine economy to subsidize qualified enterprises for costs associated with developing various innovative projects in the marine economy sector. One 
major area that the Demonstration project in Fujian focuses on is developing 
the marine aquaculture industry. Qualified enterprises can receive funds, interest subsidies, and various other subsidies from the Fujian government.  
 
2.8   Marine Fishermen Switching to Other Type  of Production and Type of Work Program  
a. Ministry of Finance and Ministry of Agricu lture Measure on Managing Special Fund on 
Marine Fishermen Switching to Other Type of Production and Type of Work Program, 
Caibannong  [2003] No. 116 (18 Sept 2003), and Ministry of Agriculture Notice regarding 
2007 Marine Fishermen Switching to Other Ty pe of Production and Type of Work 
Program , Nongbanyu [2007] No. 79 (1 Nov 2007)  
These two measures seem to have two components. First, marine fishermen receive 
cash grants from the central government for eliminating certain models of fishing boats. Second, the central government provides funds to develop fishery industrial parks and 
train fishermen. Publicly available information seems to indicate that many local 
governments have implemented this program.  
2.9   Support for Equipment 
a. Ministry of Agriculture 2014 Guiding Opinions on Implementing Subsidies for Purchase of 
Agriculture Equipment , Ministry of Finance and Ministry of Agriculture, Nongbancai 
[2014] No .6 (12 Feb 2014) and 2015-2017 Guiding Opinions on Implementing 
Subsidies for Purchase of Agriculture Equipment , Ministry of Finance and Ministry 
Agriculture (27 Jan 2015)  
Both measures seem to indicate that the central government provides funds for 
purchasing agricultural equipment, including equipment for fishing boats.  
3  QUESTIONS 
For each of the programs, policies, or implementi ng measures described in Parts I and II, please 
provide the following information: 
 
a.  Current status of the program, policy or implementing measure; 
b.  The name of the program, policy or implementing measures under which the subsidies 
are provided, the administering authority, and the policy objective and/or purpose of the 
subsidy; 
c. A description of the subsidy provided under the program, policy, or implementing 
measure including the form of subsidy, e.g., grants, loans, tax concession, etc.; 
d. Duration of the subsidy and/or any other time limits attached to it; 
e. Eligibility criteria for the subsidy; and, 
f. An explanation of whether China has (1) published all measures relating to the subsidy 
in an official journal dedicated to the publication of all laws, regulations or other 
measures pertaining to or affecting trade in goods, services, trade-related intellectual G/SCM/Q2/CHN/52 
 
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  property rights and the control of foreign ex change, as required by paragraph 2(C)(2) of 
the Protocol on the Accession of the People's  Republic of China (WT/L/432) (Protocol), 
and (2) made available a translation of those measures into one or more of the official languages of the WTO, as required by paragraph 334 of the Working Party Report 
(WT/ACC/CHN/49) accompanying the Protocol. If China has not published the measures 
or made translations of the measures available, please provide legal citations for the measures and identify where the measures can be found. 
__________