G/SCM/Q2/CHN/50  
 
17 April 2014  
(14-2403)  Page: 1/12  
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 15 April 2014, is being circulated at the request of the 
Delegation of the United States. 
 
_______________ 
  
Information available to the United States indicates that China maintains a comprehensive support 
regime for the so-called "strategic emerging industries" (SEIs) that includes policies, programmes and implementing measures that may be considered to be subsidies as defined in paragraph 1 of 
Article 1 of the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement) and 
that appear to be specific within the meaning of Article 2.   
In 2010, China's State Council announced its decision to support the development of SEIs through 
a wide range of support policies. Subsequently, China's central and sub-central authorities have issued industrial policies for the 12th five year planning period (2011-2015) that target the development of the SEI sectors. To implement these policies, China's authorities have created a 
sweeping initiative that appears to have many components at both the central and sub-central 
levels. The following questions address various components of this initiative.  
1  2010 STATE COUNCIL DECISION ON SEIS 
Question One: The 2010 Decision of the State Council on Accelerating the Fostering and 
Development of Strategic Emerging Industries  (2010 State Council Decision on SEIs)  outlines 
China's plan to support seven SEIs, namely (1) energy conservation and environmental protection, 
(2) next generation information technology, (3) biotechnology, (4) high-end equipment 
manufacturing, (5) new energy, (6) new materials, and (7) new energy vehicles. The 2010 State Council Decision on SEIs outlines the support that China intends to provide to its domestic 
producers in these sectors as follows:  
 
To accelerate the fostering and development of strategic emerging industries, we 
must improve the fiscal, taxation and financial policy support systems, increase 
support, and guide and encourage the investment of social funds. 
1. Increase financial support . We shall, based on the consolidation of current policy 
resources and fund channels, establish special purpose funds for the development of 
strategic emerging industries, establish a stable financial input growth mechanism, increase the central financial input, innovate in the support modes, and particularly support the research and development of major and key technologies, major industrial 
innovation and development projects, in dustrialization of major innovation 
achievements, major exemplary application pr ojects, build-up of innovation capacity, 
etc. We shall strengthen the guidance and support by government, and accelerate the 
popularization and application of energy-e fficient products, environmental labelling 
products, resource circular utilization products, etc. We shall strengthen the performance appraisal of fiscal policies, innovate in the fiscal fund management 
mechanisms, and improve the use efficiency of funds. G/SCM/Q2/CHN/50 
 
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  2. Improve tax incentives . We shall, based on fully implementing all current tax 
policies for promoting scientific and technological input and transformation of scientific and technological achievements, supporting development of high-tech industries, etc., study and improve tax support policies which encourage innovation and guide 
investment and consumption in light of the characteristics of strategic emerging 
industries, while taking into consideration the direction of tax reform and characteristics of taxes. 
3. Encourage financial institutions to increase credit support . We shall direct 
financial institutions to establish credit management and loan assessment systems adapted to the characteristics of strategic emerging industries… and promote the increased support from financial institutions for the development of strategic emerging 
industries. 
Please provide the following information for all programmes, policies or implementing measures 
that provide specific subsidies under the measure cited above: 
 
a. Current status of the measure or programme;  
b. The name of any implementing measures or programmes under which the subsidy is 
provided, the agency/agencies responsible fo r implementing and overseeing the subsidy 
(along with a discussion of their respective roles where there is more than one agency involved), and the policy objective and/or purpose of the subsidy;  
c. A description of the subsidy provided under the implementing measure or programme, 
including the amount of the subsidy and the fo rm of the subsidy, e.g. grants, loans, tax 
concessions, etc.; 
d. Duration of the subsidy and/or any other time-limits attached to it;  
e. Eligibility criteria for the subsidy, including any export contingency or domestic content 
requirements;  
f. The source of the subsidy (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. 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 
property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the 
Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not 
done so, please provide legal citations for the measures and identify where  the measures  
can be found. 
2  MINISTRY OF INDUSTRY AND IN FORMATION TECHNOLOGY, NOTICE 318 
Question Two:  Pursuant to the 2010 State Council Decision on SEIs, China's Ministry of Industry 
and Information Technology (MIIT) issued the Notice on Advancing the Focus of Strategic 
Emerging Industries' Key Technologies and Key Products  (MIIT Notice 318) in July 2012, which 
requested sub-central authorities to identify provincial firms, technologies, and measures 
supporting the central government's SEI initiative. In connection with this request, MIIT Notice 318 enumerates existing central, pr ovincial and municipal government funds to be 
used to promote the SEI initiative. For example, MIIT Notice 318 specifies, inter alia , the following 
central-level funding programmes that should be used to support the SEI initiative:  
1. Special Project for Technology R&D and Industrialization of the Internet of Things; 
2. Electronic Information Industry Development Fund; 
3. Notice on "Core Electronic Devices, High-end General Chips and Basic Software 
Products" National Technological Major Projects;  G/SCM/Q2/CHN/50 
 
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  4. National Science and Technology Major Project "Ultra-large-scale Integrated Circuit 
Manufacturing Equipment and Packaged Technology"; and 
5. State Council Policies on Further Promot ing Software Industry and IC Industry 
Development. 
In addition, MIIT Notice 318 specifies the existing sub-central government support programmes 
that should be used to support each of the SEI sub-sectors. For example, with respect to the SEI 
sector of next generation information technology , MIIT Notice 318 lists the following sub-central 
government support programmes that should be used to support this industry: 
 
1. Special Fund of Shanghai for the Development of Software and Integrated Circuit 
Industry; Shanghai High-tech Industrialization Project;  
2. Special Fund of Jiangsu Province for the Transformation of Scientific and Technological 
Achievements;  
3. Special Guidance Fund of Jiangsu Province for Modern Service Industry (Software 
Industry); 
4. Special Fund of Shandong Province for the Development of the Information Industry; 
5. Shandong Information Industry Development Project Fund; 
6. Special Fund of Beijing for the Desi gn and R&D of Integrated Circuits 
7. Special Fund of Guangdong Province for the Development of the Third Batch of 
Strategic Emerging Industries;  
8. Fund of Wuxi City for Internet of Things and Cloud Computing Industry;  
9. Special Fund of Tianjin for the De velopment of Software Industry;  
10. Shenzhen Revitalization and Development Policy for Internet Industry; and 
11. Special Fund of Hangzhou City  for the Development of the Internet of Things Industry. 
 
For each of the above funds, implementing measur es, policies or programmes that provide specific 
subsidies, please provide the following information: 
 
a. Current status of the fund or programme;  
b. The name of the fund, programme or any related implementing measure under which 
the subsidy is provided, the agency/agencies responsible for implementing and 
overseeing the subsidy (along with a discussion of their respective roles where there is 
more than one agency involved), and the polic y objective and/or purpose of the subsidy;  
c. A description of the subsidy provided pursua nt to the fund or programme, including the 
amount of the subsidy and the form of the su bsidy, e.g. grants, loans, tax concessions, 
etc.; 
d. Duration of the subsidy and/or any other time-limits attached to it;  
e. Eligibility criteria for the subsidy, including any export contingency or domestic content 
requirements;  
f. The source of the subsidy (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. 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 
property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the 
Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not 
done so, please provide legal citations for the measures and identify where  the measures  
can be found. 
Question Three:  Pursuant to the 2010 State Council Decision on SEIs, China's central authorities 
have also established a special fund to support the SEI initiative. In December 2012, China's 
National Development and Reform Commission (NDRC) and the Ministry of Finance (MOF) jointly G/SCM/Q2/CHN/50 
 
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  issued the Provisional Measures for the Administration of the Special Fund for the Development of 
Strategic Emerging Industries . This measure explains that the Special Fund for the Development of 
Strategic Emerging Industries (SEI Fund) is a "centrally budgeted special fund to support key technology breakthroughs, product innovation and development, and major demonstration and 
regional clustering for SEIs." In addition, the measure provides the framework for how support to 
the SEIs would be implemented, explaining that the monies in the SEI Fund will "generally be appropriated in the form of grants, equity venture capital funds, etc." and provides an overview of 
how the monies will be supervised, audited and administered. 
 Please provide the following information for all programmes, policies or implementing measures that provide specific subsidies under the measure cited above: 
 
a. Please confirm that the SEI Fund is one of the funding mechanisms that will directly 
support enterprises as part of the SEI initiative. 
b. Identify any other funding mechanisms, at the central or sub-central level of 
government, that support the SEI initiative. 
c. The name of the fund, programme or any related implementing measure under which 
the subsidy is provided, the agency/agencies responsible for implementing and 
overseeing the subsidy (along with a discussion of their respective roles where there is more than one agency involved), and the polic y objective and/or purpose of the subsidy;  
d. A description of the subsidy provided pursua nt to the fund or programme, including the 
amount of the subsidy and the form of the su bsidy, e.g. grants, loans, tax concessions, 
etc.; 
e. Duration of the subsidy and/or any other time-limits attached to it;  
f. Eligibility criteria for the subsidy, including any export contingency or domestic content 
requirements;  
g. The source of the subsidy (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
h. For each measure that establishes a fund for subsidies to be provided to the SEI 
initiative, please explain 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 
property rights and the control of foreign exchange and (2) made available a translation of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the 
Protocol on the Accession of the People's Re public of China (WT/L/432). If China has not 
done so, please provide legal citations for th e measures and identify where the measures 
can be found. 
3  SUB-CENTRAL SEI FUNDING MEASURES Question Four:  Pursuant to the 2010 State Council Decision on SEIs, sub-central governments 
have also established their own funds to support the SEI initiative. For example, according to the 
Beijing City Opinion on Expediting the Development and Nurturing of the Strategic Emerging 
Industries , the Beijing government will allocate RMB 20 billion from its Key Technological 
Achievement Transformation and Indust ry Project Fund to support SEIs. 
 
Please provide the following information for all programmes, policies or implementing measures that provide specific subsidies under the measure cited above: 
 
a. Current status of the implementing measure or programme;  
b. The name of any related implementing measure or programme under which the subsidy 
is provided, the agency/agencies responsi ble for implementing and overseeing the G/SCM/Q2/CHN/50 
 
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  subsidy (along with a discussion of their respective roles where there is more than one 
agency involved), and the policy objective and/or purpose of the subsidy;  
c. A description of the subsidy provided under the implementing measure or programme, 
including the amount of the subsidy and the fo rm of the subsidy, e.g. grants, loans, tax 
concessions, etc.; 
d. Duration of the subsidy and/or any other time-limits attached to it;  
e. Eligibility criteria for the subsidy, including any export contingency or domestic content 
requirements;  
f. The source of the subsidy (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. 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 property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not 
done so, please provide legal citations for the measures and identify where  the measures  
can be found. 
Question Five:  Pursuant to the 2010 State Council Decisi on on SEIs, Fujian province issued the 
Implementing Plan for Expediting the Development of Strategic Emerging Industries , which states 
that the Fujian provincial government will establish an SEI Venture Capital Fund with no less than 
RMB 1 billion and an SEI Guiding Fund with RM B 500 million, and that the Fujian provincial 
government plans to invest RMB 128 billion, in 100 major SEI programmes. 
 
Please provide the following information for all programmes, policies or implementing measures that provide specific subsidies under the measures cited above: 
 
a. Current status of the implementing measure or programme;  
b. The name of any implementing measure or programme under which the subsidy is 
provided, the agency/agencies responsible fo r implementing and overseeing the subsidy 
(along with a discussion of their respective roles where there is more than one agency 
involved), and the policy objective and/or purpose of the subsidy;  
c. A description of the subsidy provided under the implementing measure or programme, 
including the amount of the subsidy and the fo rm of the subsidy, e.g. grants, loans, tax 
concessions, equity, etc.; 
d. Duration of the subsidy and/or any other time-limits attached to it;  
e. Eligibility criteria for the subsidy, including any export contingency or domestic content 
requirements;  
f. The source of the subsidy (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. 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 
property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the 
Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not G/SCM/Q2/CHN/50 
 
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  done so, please provide legal citations for the measures and identify where  the measures 
can be found. 
Question Six:  Pursuant to the 2010 State Council Decision on SEIs, Jiangxi province issued the 
Interim Measure on the Management of the Strategic Emerging Industry Investment Guiding Fund , 
which states that the Jiangxi provincial governme nt will allocate RMB 400 million from the Jiangxi 
Provincial SEI Development Special Fund in 2012 to the Jiangxi SEI Investment Guiding Fund. 
 
Please provide the following information for all programmes, policies or implementing measures 
that provide specific subsidies under the measure cited above:  
a. Current status of the implementing measure or programme;  
b. The name of any implementing measure or programme under which the subsidy is 
provided, the agency/agencies responsible fo r implementing and overseeing the subsidy 
(along with a discussion of their respective roles where there is more than one agency 
involved), and the policy objective and/or purpose of the subsidy;  
c. A description of the subsidy provided under the implementing measure or programme, 
including the amount of the subsidy and the fo rm of the subsidy, e.g. grants, loans, tax 
concessions, etc.; 
d. Duration of the subsidy and/or any other time-limits attached to it;  
e. Eligibility criteria for the subsidy, including any export contingency or domestic content 
requirements;  
f. The source of the subsidy (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. 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 property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not 
done so, please provide legal citations for the measures and identify where  the measures  
can be found. 
Question Seven:  Pursuant to the 2010 State Council Decision on SEIs, Shandong Province issued 
the Shandong 12th Five-Year Development Plan for SEIs , which states that the Shandong 
provincial government will allocate no less than RMB 1 billion each year to fund the development 
of SEIs.  
Please provide the following information for all programmes, policies or implementing measures 
that provide specific subsidies under the measure cited above:  
a. Current status of the implementing measure or programme;  
b. The name of any implementing measure or programme under which the subsidy is 
provided, the agency/agencies responsible fo r implementing and overseeing the subsidy 
(along with a discussion of their respective roles where there is more than one agency 
involved), and the policy objective and/or purpose of the subsidy;  
c. A description of the subsidy provided under the implementing measure or programme, 
including the amount of the subsidy and the fo rm of the subsidy, e.g. grants, loans, tax 
concessions, etc.; 
d. Duration of the subsidy and/or any other time-limits attached to it;  G/SCM/Q2/CHN/50 
 
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  e. Eligibility criteria for the subsidy, including any export contingency or domestic content 
requirements;  
f. The source of the subsidy (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. 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 
property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not 
done so, please provide legal citations for the measures and identify where  the measures  
can be found. 
Question Eight: Pursuant to the 2010 State Council Decision on SEIs, Shanghai issued the 
Shanghai Measure on the Management of the Shanghai SEI Development Special Fund , which 
states that the Shanghai government will provide each qualified project up to RMB 100 million in 
funding from the Shanghai SEI Development Special Fund. 
 
Please provide the following information for all programmes, policies or implementing measures that provide specific subsidies under the measure cited above:  
a. Current status of the implementing measure or programme;  
b. The name of any implementing measure or programme under which the subsidy is 
provided, the agency/agencies responsible fo r implementing and overseeing the subsidy 
(along with a discussion of their respective roles where there is more than one agency 
involved), and the policy objective and/or purpose of the subsidy;  
c. A description of the subsidy provided under the implementing measure or programme, 
including the amount of the subsidy and the fo rm of the subsidy, e.g. grants, loans, tax 
concessions, etc.; 
d. Duration of the subsidy and/or any other time-limits attached to it;  
e. Eligibility criteria for the subsidy, including any export contingency or domestic content 
requirements;  
f. The source of the subsidy (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. 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 
property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not 
done so, please provide legal citations for the measures and identify where  the measures  
can be found. 
4  SEI GUIDING CATALOGUES 
Question Nine: China's central authorities have also issued product catalogues to help guide the 
government support provided to the SEI sectors and subsectors. For example, on 
November 12, 2012, pursuant to the 2010 State Council Decision on SEIs, MIIT released a draft 
Classification Catalogue of Strategic Emerging Industries  for public comment. The draft catalogue 
identifies SEI subsectors and creates a numbering system to collect data on SEI development in 
each product category. The catalogue also indicates that one of the reasons for the creation of this G/SCM/Q2/CHN/50 
 
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  catalogue is to help "relevant departments issue targeted supporting fiscal and taxation policies." 
This catalogue lists 2,410 specific products and services that are covered under the SEI initiative.   
a. Please explain the current status of the measure.  
b. Please explain the purpose of the draft MIIT  Catalogue and the role it plays in the 
implementation of the various funds, implementing measures and subsidy programmes addressed above. 
c. Are sub-central governments permitted to add other industries as strategic emerging 
industries? If so, what other industries have been added by sub-central governments?  
Question Ten:  In addition, two months after MIIT released the draft Classification Catalogue of 
Strategic Emerging Industries  for public comment, NDRC issued the SEI Major Products and 
Services Guiding Catalogue  on February 23, 2013, pursuant to the 2010 State Council Decision on 
SEIs. Similar to the MIIT catalogue, the NDRC cata logue specifies the products and services within 
the scope of the SEI initiative that will receive support from central and sub-central governments. 
The NDRC catalogue lists 3,100 specific products and services that are covered under the SEI 
initiative.   
a. Please explain the purpose of the NDRC catalogue and the role it plays in the 
implementation of the various funds, implementing measures and subsidy programmes addressed above. 
b. Please explain how this catalogue differs from the MIIT catalogue released for comment 
in November 2012. 
c. Are sub-central governments permitted to add other products and services as strategic 
emerging industries? If so, what other industries have been added by sub-central 
governments?  
5  CENTRAL-LEVEL SEI 12TH FIVE-YEAR PLANS Question Eleven:  As indicated in the 24 October 2012 Article 25.8 request from the United States 
to China, it is the understanding of the United St ates that China has national-level industrial plans 
that provide targets and goals for encouraged indu stries, including the SEI industries. These plans 
guide government agencies and enterprises in China (including state-owned and state-controlled enterprises) and form a key basis for decision making across a wide range of sectors and activities 
within the Chinese economy. Pursuant to the 2010 State Council Decision on SEIs, China's State 
Council issued the 12th Five-Year Plan for Strategic Emerging Industries  (12th Five-Year Plan on 
SEIs) in July 2012, which outlines the government's intention to develop SEIs. The 12th Five-Year 
Plan on SEIs, inter alia , directs both central and sub-central governments  to implement the SEI 
initiative. Specifically, it states:  
i. Increase support in terms of financial and tax policies. 
1. Give greater support in terms of financial and tax policies . While integrating 
existing policy resources and fully utilizing existing funding channels, build a stable mechanism promoting the increase of financial investment, set up a special fund for 
the development of Strategic Emerging Indu stries and concentrate on supporting R&D 
of major and critical technologies, majo r industry innovation and development 
projects, industrialization of major innovation results, key application pilot projects 
and development of innovation capabilities. Given the tax system reform targets and 
different tax features, speed up efforts to study, improve and implement tax support policies encouraging innovation and guiding the investment and consumption to meet 
the circumstances of strategic emerging industries, 
2. Strengthen financial  support . Integrate financial policy with fiscal policy, apply 
measures, such as risk compensation, to encourage financial institutions to increase loan support for Strategic Emerging Industries…Support and develop venture capital 
firms, and give play to the role of th e government's emerging industry venture G/SCM/Q2/CHN/50 
 
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  investment funds in leading the private investment…Lead private investors and private 
capital to invest in Strategic Emerging Industries. 
Please provide the following information for all programmes, policies or implementing measures 
that provide specific subsidies under the measure cited above: 
 
a. Current status of the measure or programme;  
b. The name of any implementing measure or programme under which the subsidy is 
provided, the agency/agencies responsible fo r implementing and overseeing the subsidy 
(along with a discussion of their respective roles where there is more than one agency involved), and the policy objective and/or purpose of the subsidy;  
c. A description of the subsidy provided under the implementing measure or programme, 
including the amount of the subsidy and the fo rm of the subsidy, e.g. grants, loans, tax 
concessions, etc.; 
d. Duration of the subsidy and/or any other time-limits attached to it;  
e. Eligibility criteria for the subsidy, including any export contingency or domestic content 
requirements;  
f. The source of the subsidy (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. 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 
property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the 
Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not 
done so, please provide legal citations for the measures and identify where  the measures  
can be found. 
Question Twelve:  China's central government authorities have also issued 12th Five Year Plans 
for specific sectors and sub-sectors under the SEI initiative, including, inter alia :  
 
1. 12th Five-Year Development Plan for the Energy Efficient and Environmental Protection 
Industry; 
2. 12th Five-Year Development Plan for Renewable Energy ; 
3. 12th Five-Year Development Plan for Environmental Protection Equipment ; 
4. 12th Five-Year Plan for Smart Grid Industrialization Engineering ; 
5. 12th Five-Year Development Plan for Semiconductor Lighting Technology ; 
6. 12th Five-Year Development Plan for the Internet Industry ; 
7. 12th Five-Year Development Plan for the Electronic Information Manufacturing Industry ; 
8. 12th Five-Year Plan for Cloud Computing ; 
9. 12th Five-Year Development Plan for Internet of Things ; 
10. 
12th Five-Year Development Plan for the Integrated Circuit Industry ; 
11. 12th Five-Year Development Plan for the Telecommunications Industry ; 
12. 12th Five-Year Plan for the Software and Information Technology Industry ; 
13. 12th Five-Year Development Plan for the Biotechnology Industry ; 
14. 12th Five-Year Plan for Medical Technology Development ; 
15. 12th Five-Year Development Plan for the High-end Equipment Manufacturing Industry ; 
16. 12th Five-Year Development Plan for the New Materials Industry ; 
17. 12th Five-Year Plan for High-Performance Membrane Material Technology ; 
18. 12th Five-Year Plan for the Energy-Saving and New Energy Automotive Industry ; and 
19. 12th Five-Year Development Plan for Electric Vehicle Technology. 
 
These plans appear to authorize subsidies such as grants, tax incentives, and preferential loans 
and other support for the SEI sectors and sub-sectors. For example, the 12th Five-Year G/SCM/Q2/CHN/50 
 
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  Development Plan for the Biotechnology Industry  issued by China's Ministry of Science and 
Technology (MOST), inter alia , provides as follows: 
 
Integrate government science and technology programmes (funds) and scientific and 
technological infrastructure construction projects and increase fiscal investments in 
biotechnology and bio-industry; formulat e and improve tax support policies …and 
encourage relevant departments and local governments to set up venture capital 
guidance funds and lead social capital to enter the biotechnology sectors for venture 
capital investment.  
The 12th Five-Year Plan for the Energy-Sav ing and New Energy Automotive Industry  issued by 
China's State Council, inter alia , provides as follows: 
 
The central government shall allocate capital to give appropriate support to the projects implementing technical innovation in energy-saving and new energy vehicles, 
and guide enterprises to increase investment … grant subsidies to the demonstration 
of energy-saving and new energy vehicles … to individuals who purchase new energy 
vehicles, and encourage consumers to buy energy-saving vehicles… 
Enterprises that produce energy-saving an d new energy vehicles and key parts and 
components can enjoy sales tax exemption policy for their income from technology development, transfer and related consulting and service businesses.  
The 12th Five-Year Development Plan for the Integrated Circuit Industry  issued by MIIT, inter alia , 
provides as follows: 
 
Through such channels as the Technical Upgrading Fund, the Special Fund for IC 
Research & Development and the Electronic Information Industry Development [the 
central government will] continue to support the efforts to boost indigenous innovation capability and core competitiveness of the IC industry.  
The 12th Five-Year Development Plan for the Internet Industry  issued by MIIT, inter alia , provides 
as follows:  
Specifically, various special funds shall be comprehensively utilized for the key 
sectors... In addition, Internet enterprise s could enjoy preferential finance and tax 
policies pursuant to relevant laws and regulations of the central and local governments.  
The 12th Five-Year Development Plan for the New Materials Industry  issued by MIIT, inter alia , 
provides as follows:  
Establish a stable financial investment mechanism, strengthen the support for the new 
materials industry through the channels established in the central financial system (e.g. Special Fund for the Development of Strategic Emerging Industries). The local government should also increase the investment in new materials industry. Fully 
implement and utilize existing taxation policies that can facilitate the development of 
high and new technology industries, carry out certification for new material enterprises and products, and refine relevant preferential import taxation policies for 
key R&D projects and demonstration projects in new materials industry.  
Please provide the following information for all programmes, policies or implementing measures 
that provide specific subsidies under the measures cited above: 
 
a. Current status of the implementing measures or programmes;  
b. The name of any implementing measures or programmes under which the subsidies are 
provided, the agency/agencies responsibl e for implementing and overseeing the 
subsidies (along with a discussion of their respective roles where there is more than one 
agency involved), and the policy objective and/or purpose of the subsidies;  G/SCM/Q2/CHN/50 
 
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  c. A description of the subsidies provided under the implementing measures or 
programmes, including the form of the subsid ies, e.g. grants, loans, tax concessions, 
etc.; 
d. Duration of the subsidies and/or any other time-limits attached to them;  
e. Eligibility criteria for the subsidies, including any export contingency or domestic content 
requirements;  
f. The source of the subsidies (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. An explanation of whether China has (1) published all measures relating to the subsidies 
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 
property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the 
Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not 
done so, please provide legal citations for the measures and identify where  the measures  
can be found. 
6  SUB-CENTRAL SEI 12TH FIVE-YEAR PLANS 
Question Thirteen : In addition to central-level Five-Year Plans, sub-central governments have 
also issued Five-Year Plans implementing the 12th Five-Year Plan on SEIs in their respective jurisdictions. For example, the Zhejiang 12th Fifth-Year Plan for the Development of Energy 
Technology and Equipment issued by the Zhejiang Development and Reform Commission instructs 
provincial planners, inter alia , to:  
 
make the research, development, and commercialization of first products in important 
energy technology and equipment areas a br eakthrough point for improving the ability 
to indigenously innovate. Encourage and support enterprises to rely on national and 
provincial level projects, with import substitution as the guiding [principle] and 
[through] attacking key technology problems, to research and develop a set of national and provincial first products. Prov ide subsidies to enterprises that achieve 
major breakthroughs in researching, developing, and commercializing first products.  
In the Beijing 12th Five-Year Development Plan for the Biological and Pharmaceutical Industry , 
issued by the Beijing Municipal Commission of Economy and Information Technology, the Beijing government plans to, inter alia : 
 
Be innovative about methods for government  funding; provide funding through equity 
investments, interest subsidies, capital injections, etc. to support the major innovation 
and industrialization projects.  
The Guangdong 12th Five-Year Development Plan for the LED Industry  supports the local LED 
industry, inter alia, by: 
 
Utilizing grants, interest subsidies, loans,  awards instead of subsidies and other 
methods to implement a series of demonstration projects with clear leading abilities.  
Please provide the following information for all programmes, policies or implementing measures 
that provide specific subsidies under the measures cited above: 
 
a. Current status of the measures or programmes;  
b. The name of any implementing measures or programmes under which the subsidies are 
provided, the agency/agencies responsibl e for implementing and overseeing the 
subsidies (along with a discussion of their respective roles where there is more than one agency involved), and the policy objective and/or purpose of the subsidies;  G/SCM/Q2/CHN/50 
 
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  c. A description of the subsidies provided und er the implementing measure or programme, 
including the form of the subsidies, e.g.  grants, loans, tax concessions, etc.; 
d. Duration of the subsidies and/or any other time-limits attached to it;  
e. Eligibility criteria for the subsidies, including any export contingency or domestic content 
requirements;  
f. The source of the subsidies (e.g. central go vernment funding, sub-central government 
funding, central government and local government cost-sharing, etc.); and  
g. An explanation of whether China has (1) published all measures relating to the subsidies 
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 property rights and the control of foreign exchange and (2) made available a translation 
of those measures into one or more of the o fficial languages of the WTO, as required by 
paragraph 334 of the Working Party Report (WT/ACC/CHN/49) accompanying the Protocol on the Accession of the People's Republic of China  (WT/L/432). If China has not 
done so, please provide legal citations for the measures and identify where  the measures  
can be found. 
 
__________