G/SCM/N/95/CHN  
 
16 May 2013  
(13-2564)  Page: 1/68  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE 
GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON 
SUBSIDIES AND COUNTERVAILING MEASURES 
CHINA 
The following communication, dated 11 April 2006, is being circulated at the request of the 
Delegation of China. 1 
 
_______________ 
 
 
The following notification constitutes the People's Republic of China's new and full notification of 
information on programmes granted or maintained at the central government level in China. In 
general, the period to which the following information applies is 2001  to 2004.  
 Insofar as the notification obligation is a transparency-orientated provision that, pursuant to 
Article 25.7 of the Agreement, carries no legal weight as to the actual identification or 
measurement of a subsidy, its action ability status , or its trade effects, China has included certain 
activities in this notification which arguably are not (or are not always) "specific subsidies" within the meaning of the Agreement. 
 
 
                                               
1 The content of this document, issued at the request of China, is identical to that of document 
G/SCM/N/123/CHN, circulated on 13 April 2006, which should have carried both symbols. G/SCM/N/95/CHN 
 
- 2 - 
 
  I. 
 1. Title of the subsidy programme 
 
 Preferential tax policies for foreign-invested enterprises 
 2. Period covered by the notification 
  2001-2004  3. Policy objective and/or purpose of the subsidy 
  To encourage foreign investment  
4. Background and authority for the subsidy 
 
Ministry of Finance (MOF), State Administration of Taxation (SAT), Ministry of Commerce 
(MOFCOM) 
 5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment 
and Foreign Enterprises (the Tax Law) ; 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprise; 
 
State Council Circular Guo Fa No. 37 of 2000 
 6. Form of the subsidy 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided 
 
(1) Any enterprise with foreign investment of a production nature scheduled to operate for a 
period of not less than ten years shall, from the year beginning to make profit, be exempted from 
income tax in the first and second years and allowed a fifty per cent reduction in the third to fifth 
years ("two years of exemption and three years fifty per cent reduction").  (2) Any foreign investor 
of an enterprise with foreign investment which reinvests its share of profit obtained from the enterprise directly into that enterprise by increasing its registered capital, or uses the profit as 
capital investment to establish other enterprises wi th foreign investment to operate for a period of 
not less than five years, may be refunded forty per cent of the income tax already paid on the 
reinvested amount.  (3) For direct reinvestment in China by foreign investors for the organization 
and expansion of export-oriented enterprises or advanced technology enterprises, the entire 
portion of enterprises income tax that has been pa id on the reinvested amount may be refunded.  
(4) Any foreign enterprise which has no establishmen t or place in China but derives profit, interest, 
rental, royalty and other income from sources in China, or though it has an establishment or a 
place in China, the said income is not effectively connected with such establishment or place, may, since January 1 2000, be levied at the reduced income tax rate of ten per cent, but the income tax of the profit that the foreign investors made out of the foreign invested enterprises are exempted.  
(5) Income tax of the royalty received for the supply of technical know-how in scientific research, 
exploitation of energy resources, developm ent of the communications and transportations 
industries, agricultural, forestry and animal husbandry production, and the development of 
important technologies may be levied at the reduced rate of ten per cent.  Where the technology 
supplied is advanced or the terms are preferential, exemption from income tax may be allowed.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 G/SCM/N/95/CHN 
 
- 3 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1991-present, while item (4) 2000-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
II.  1. Title of the subsidy programme 
  Preferential tax policies for foreign-invested export enterprises  
2. Period covered by the notification 
 
 2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
  To encourage foreign investment 
 
4. Background and authority for the subsidy 
 
MOF, SAT, MOFCOM 
  5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment 
and Foreign Enterprises ; 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprises  
 
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
Export-oriented enterprises invested in and operated by foreign businesses for which in any 
year the output value of all export products amounts to seventy per cent or more of the output 
value of the products of the enterprise for that year may pay enterprise income tax at the tax rate specified in the Tax Law reduced by one half after the period of enterprise income tax exemption 
or reduction has expired in accordance with the provisions of the Tax Law.  However, export-
oriented enterprises in the special economic zones and economic and technological development zones and other such enterprises subject to enterprise income tax at the tax rate of fifteen per 
cent that qualify under the above-mentioned conditions shall pay enterprise income tax at the tax 
rate of ten per cent.   8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1991-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  G/SCM/N/95/CHN 
 
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III.  1. Title of the subsidy programme 
 
Preferential tax policies for foreign-invested en terprises engaged in agriculture, forestry or 
animal husbandry and foreign-invested enterprises established in remote underdeveloped areas 
 
2. Period covered by the notification 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage foreign investment into agriculture, forestry or animal husbandry, and into 
remote underdeveloped areas  
4. Background and authority for the subsidy 
 
 MOF, SAT, MOFCOM  
5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment 
and Foreign Enterprises  
 6. Form of the subsidy 
  Preferential tax treatment  
 7. To whom and how the subsidy is provided 
 
Any foreign-invested enterprises engaged in ag riculture, forestry or animal husbandry and 
foreign-invested enterprises established in remote underdeveloped areas may be allowed a fifteen 
to thirty per cent reduction of the amount of income tax payable for a period of another ten years 
following the expiration of the period for tax exemption or reduction.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1991-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  IV. 
 
1. Title of the subsidy programme 
 
Preferential tax policies for foreign-invested enterprises engaged in energy, transportation 
infrastructure projects  
2. Period covered by the notification 
 
 2001-2004  G/SCM/N/95/CHN 
 
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  3. Policy objective and/or purpose of the subsidy 
 
 To encourage foreign investment into infrastructure construction  
4. Background and authority for the subsidy 
 
 MOF, SAT, MOFCOM 
 
5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment 
and Foreign Enterprises ; 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprises; 
 
State Council Circular Guo Fa No.13 of 1999 
 
6. Form of the subsidy 
   Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
  
The income tax of foreign-invested enterprises engaged in energy and transportation 
infrastructure projects such as harbour and wharf projects may be levied at the reduced rate of 
fifteen per cent. The implementing scope of the policy stipulated in Art.73.1.1.3 of Rules for the 
Implementation of the Income Tax Law of the Pe ople's Republic of China for Enterprises with 
Foreign Investment and Foreign Enterprises  is enlarged to nationwide. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
   Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1999-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 V. 
 
1. Title of the subsidy programme 
 
Preferential tax policies for Chinese-foreign equity joint ventures engaged in port and dock 
construction  2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To encourage foreign investment into infrastructure construction 
 
4. Background and authority for the subsidy 
  MOF, SAT, MOFCOM 
 G/SCM/N/95/CHN 
 
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  5. Legislation under which it is granted 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprises 
 
6. Form of the subsidy 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided 
 
Chinese-foreign equity joint ventures engaged in port and dock construction may be 
imposed of enterprise income tax at the reduced rate of fifteen per cent, and where the period of operations is 15 years or more may be exempt from enterprise income tax from the first year to 
the fifth year starting from the year beginning to make profit and subject to enterprise income tax 
at a rate reduced by one half for the sixth year through the tenth year.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1991-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  VI. 
 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment which are technology-
intensive and knowledge-intensive  
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To encourage foreign investment 
 
4. Background and authority for the subsidy 
 
 MOF, SAT, MOFCOM, Ministry of Science and Technology (MOST) 
 5. Legislation under which it is granted 
 
 SAT Circular Guo Shui Fa No.139 of 1995, SAT Circular Guo Shui Fa No.135 of 2003 
 6. Form of the subsidy 
  Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
Enterprises with foreign investment which are technology-intensive and knowledge-intensive 
and whose major products are enlisted in the "Catalogue of High and New Technology Products of 
China" promulgated by MOST and the sales revenue of these products of that year accounts for G/SCM/N/95/CHN 
 
- 7 - 
 
  over fifty per cent of the total annual sales reve nue of the enterprise, may be imposed a reduced 
enterprises income tax rate of fifteen per cent . 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
  1991-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available. 
 VII. 
 
1. Title of the subsidy programme 
  Preferential tax policies for enterprises with foreign investment in the border cities 
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
To encourage foreign investment into border  cities and expand the open-up policy and 
enhance the development of the border areas  
4. Background and authority for the subsidy 
 
 MOF, SAT, MOFCOM 
 
5. Legislation under which it is granted 
 
 SAT Circular Guo Shui Han Fa No.1412 of 1992 
 6. Form of the subsidy 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided 
 
The enterprise income tax of the foreign-invested enterprises of a production nature 
established in 12 border cities, counties or towns (note 1) may be levied at a reduced rate of 
twenty-four per cent. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1992-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available 
 G/SCM/N/95/CHN 
 
- 8 - 
 
  VIII. 
 1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment recognized as high or new 
technology enterprises established in the State high or new technology industrial development zones, and for advanced technology enterprises invested in and operated by foreign businesses 
 
2. Period covered by the notification 
   2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage high and new technology industrial development and enhance the technology 
progress.   
4. Background and authority for the subsidy 
 
 MOF, SAT, MOFCOM, MOST  
5. Legislation under which it is granted 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprises 
 6. Form of the subsidy 
  Preferential tax treatment  7. To whom and how the subsidy is provided 
 
(1) The enterprise income tax of the enterprise s with foreign investment recognized as high 
or new technology enterprises established in the State high or new technology industrial 
development zones may be levied at a reduced rate of fifteen per cent.  The Chinese-foreign 
equity joint ventures recognized as high or ne w technology enterprises and established in the 
State high or new technology industrial development zones of which the operation period is ten 
years or more may be exempt from the enterprise income tax in the first and second years from 
the year beginning to make profit. Foreign-invested enterprises established in the high or new technology industrial development zones which are located in the special economic zones and the economic and technological development zones shall be governed by the preferential tax 
provisions of the special economic zones and the economic and technological development zones.  
(2) Advanced technology enterprises invested in and operated by foreign businesses which remain 
advanced technology enterprises after the period of enterprise income tax exemption or reduction 
has expired in accordance with the provisions of the Tax Law may continue to pay enterprise 
income tax for an additional three years at the tax rate specified in the Tax Law reduced by one half. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
  1991-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  G/SCM/N/95/CHN 
 
- 9 - 
 
  IX. 
 1. Title of the subsidy programme 
 
Preferential tax policies for enterprises recogn ized as high or new technology enterprises 
established in the State high or new technology industrial development zones  
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To encourage high and new technology industrial development and enhance the technology 
progress 
 4. Background and authority for the subsidy 
  MOF, SAT, MOST  5. Legislation under which it is granted 
  MOF Circular Cai Shui Zi No.001 of 1994  
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
(1) The enterprise income tax of the enterprises recognized as high or new technology 
enterprises established in the State high or new technology industrial development zones may be 
levied at a reduced rate of fifteen per cent, and may be exempt from the enterprises income tax in 
the first and second years from the year beginning production. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  9. Duration of the subsidy and/or any other time-limits attached to it 
  1994-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
X.  1. Title of the subsidy programme 
 Preferential tax policies for enterprises with foreign investment established in special economic zones (excluding Shanghai Pudong area) 
 
2. Period covered by the notification 
 
 2001-2004 
 G/SCM/N/95/CHN 
 
- 10 - 
 
  3. Policy objective and/or purpose of the subsidy 
 
To absorb foreign investment and expand the open-up policy and enhance development of 
the areas 
 
4. Background and authority for the subsidy 
 
 MOF, SAT, MOFCOM 
 5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment 
and Foreign Enterprises ; 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprises 
 
6. Form of the subsidy 
 
Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
(1) The income tax on enterprises with foreig n investment established in Shenzhen, Zhuhai, 
Shantou, Xiamen and Hainan special economic zones and foreign enterprises which have 
establishments or places in these special economic zones engaged in production or business operations shall be levied at the reduced rate of fifteen per cent.  (2) The income tax on 
enterprises with foreign investment of a production nature established in the old urban districts of 
cities where the above-mentioned zones are located shall be levied at the reduced rate of twenty-
four per cent. (3) The income tax on the producti on-oriented enterprises with foreign investment 
established in the old urban districts of cities  where the above-mentioned zones are located and 
which are engaged in the following projects: (a) technology-intensive or knowledge-intensive 
projects, (b) projects with foreign investments of  over US$30 million and having long periods for 
return on investment, (c) energy resources, transp ortation and port construction projects, shall be 
levied at the reduced rate of fifteen per cent.  (4) Enterprises with foreign investment established 
in the Hainan special economic zones and engaged in infrastructure projects such as airports, harbours, docks, highways, railways, power stations, coal mines and water conservation, and 
enterprises with foreign investment engaged in th e development of and operations in agriculture 
where the period of operations is fifteen years or more, shall be exempt from enterprise income tax from the first year to the fifth years starting from the year beginning to make profit and subject to enterprise income tax at a rate reduced by one half for the sixth year through the tenth 
year.  (5) The foreign investors who reinvest the profit made from the enterprises established in 
Hainan special economic zones into the infrastructure construction projects of, or agricultural development enterprises in, the Hainan special econ omic zones may be refunded the entire portion 
of the enterprise income tax that has been paid on the reinvested amount. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1984-present, while item (5) 1991-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 G/SCM/N/95/CHN 
 
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  XI. 
  1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment established in the costal 
economic open areas and in the economic and technological development zones  
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To absorb foreign investment and expand the open-up policy and enhance development of 
the areas 
 4. Background and authority for the subsidy 
  MOF, SAT, MOFCOM  5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment 
and Foreign Enterprises ; 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprises  
 
6. Form of the subsidy 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
(1) The income tax on enterprises with foreign investment of a production nature 
established in the economic and technological development zones shall be levied at the reduced rate of fifteen per cent.  (2) The income tax on en terprises with foreign investment of a production 
nature established in the coastal economic open areas (note 2) and in the old urban districts of 
cities where the economic and technological development zones are located shall be levied at the reduced rate of twenty-four per cent.  (3) Th e income tax on the enterprises with foreign 
investment of a production nature established in the coastal economic open areas and in the old 
urban districts of cities where the economic an d technological development zones are located and 
which are engaged in the following projects: (a) technology-intensive or knowledge-intensive projects, (b) projects with foreign investments of  over US$30 million and having long periods for 
return on investment, (c) energy resource, transpor tation and port construction projects, shall be 
levied at the reduced rate of fifteen per cent.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1984- present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  G/SCM/N/95/CHN 
 
- 12 - 
 
  XII. 
 1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment established in Pudong area of 
Shanghai  
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To absorb foreign investment and expand the open-up policy and enhance development of 
the area 
 4. Background and authority for the subsidy 
  MOF, SAT, MOFCOM  5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment 
and Foreign Enterprises; 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprises.  
 
6. Form of the subsidy 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
The income tax on enterprises with foreign investment of a production nature established in 
Pudong area of Shanghai as well as enterprises with foreign investment engaged in energy resources and transport construction projects such as airport, ports, railways, highways and power 
stations shall be levied at the reduced rate of fi fteen per cent.  Enterprises with foreign investment 
engaged in energy resources and transport construction projects such as airport, ports, railways, highways and power stations where the period of operations is fifteen years or more may be exempt from enterprise income tax from the first year to the fifth year starting from the year 
beginning to make profit and subject to enterprise income tax at a rate reduced by one half for the 
sixth year through the tenth year.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1991-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  G/SCM/N/95/CHN 
 
- 13 - 
 
  XIII. 
 1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment established in the Three 
Gorges of Yangtze River Economic Zone  
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To absorb foreign investment and expand the open-up policy and enhance development of 
the areas 
 4. Background and authority for the subsidy 
  MOF, SAT, MOFCOM  5. Legislation under which it is granted 
  MOF Circular Cai Shui Zi No.034 of 1995  
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
(1) The income tax on enterprises with foreign investment of a production nature 
established in the Three Gorges of Yangtze River Economic Zone (note 3) shall be levied at the 
reduced rate of twenty-four per cent.  (2) The in come tax on enterprises with foreign investment 
established in the Three Gorges of Yangtze Rive r Economic Zone which are engaged in energy 
resources, transportation, harbour and wharf projec ts or other projects encouraged by the State, 
shall be levied at the reduced rate of fifteen per cent.  (3) The income tax on the enterprises with foreign investment of a production nature established in the old urban districts of the open cities 
along the Yangtze River such as Yichang, Wanxia n and Fuling and etc., shall be levied at the 
reduced rate of twenty-four per cent.  (4) Amon g the enterprises mentioned in item (3), those 
engaged in technology-intensive or knowledge-intensive projects, or projects with foreign investments of over US$30 million and having long periods for return on investment, or energy 
resources, transportation and port construction pr ojects shall be levied at the reduced rate of 
fifteen per cent.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1995-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
XIV. 
 1. Title of the subsidy programme 
 
Preferential tax policies in the western regions G/SCM/N/95/CHN 
 
- 14 - 
 
   
2. Period covered by the notification 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
To accelerate the development of the western regions, expand the opening up, lessen the 
imbalance of economic development among different areas and accelerate the development of the regions  
4. Background and authority for the subsidy 
  
 MOF, SAT, MOFCOM and other relevant authorities under the State Council 
 
5. Legislation under which it is granted 
 
State Council Circular Guo Fa No. 33 of 2000; 
General Office of State Council Circular Guo Ban Fa No. 73 of 2001; MOF Circular Cai Shui No. 202 of 2001; SAT Circular Guo Shui Fa No. 172 of 1999. 
 
6. Form of the subsidy 
  
 Preferential tax treatment 
 7. To whom and how the subsidy is provided 
 
(1) The income tax on enterprises, domestic and foreign-invested, established in the 
western regions (note 4) which are engaged in indu stries encouraged by the State shall be levied 
at the reduced rate of fifteen per cent from the year 2001 to 2010.  For domestic enterprises, 
industries encouraged by the State refer to those listed in the  "Catalogue of the Industries, 
Products and Technologies Particularly Encouraged by the State", and the enterprises must have the items included in the Catalogue  as its major business which should account for over seventy 
per cent of total revenue.  For foreign-invested enterprises, industries encouraged by the State 
refer to those listed as encouraged in the  "Catalogue for the Guidance of the Foreign Investment 
Industries"  and listed in the "Catalogue for the Guidance of the Advantageous Industries in Central 
and Western Regions for Foreign Investment", and the enterprises must have the items as listed in 
the two Catalogues as its major business which should account for over seventy per cent of total revenue.  (2) The enterprises, domestic and foreign-invested, which are newly established in the western regions and engaged in business such as transportation, electricity, water conservation 
and etc., of which the revenue accounts for over se venty per cent of total revenue, shall be, from 
the year beginning production or operation for do mestic enterprises and from the year beginning 
to make profit for foreign-invested enterprises with  the period of operations of ten years or more, 
exempt from the income tax for the first and second years and subject to enterprise income tax at 
a rate reduced by one half for the third year throug h the fifth year.  (3) Income from production of 
agricultural specialty products which is a result of returning cultivated land to forests and returning 
grazing land to grassland for the sake of envi ronmental protection shall be exempt from the 
agricultural specialty tax for 10 years from the ye ar beginning to generate revenue.  (4) The land 
taken to construct highways in western regions is exempt from the farmland occupation tax.  (5) The domestic and the foreign-invested enterprises established in the western regions and engaged 
in the encouraged industries respectively as ment ioned above in item 1) are exempt from the tariff 
and import VAT for the imported equipments for self uses within the total amount of the capital invested, except for those listed in "Catalogue  for the imported products not subject to tax 
exemption in foreign invested projects" or in the "Catalogue for the imported products not subject 
to tax exemption in domestic invested projects".  (6) Since January 1 2000, the foreign-invested enterprises established in nineteen provinces, autonomous regions and municipalities directly 
under the Central Government in central and western regions, namely Shanxi Province, Jilin 
Province, Heilongjiang Province, Anhui Province, Jiangxi Province, Henan Province, Hubei Province, 
Hunan Province, Chongqing Municipality, Sichuan Province, Guizhou Province, Yunan Province, Tibet Autonomous Region, Shaanxi Province, Gansu Province, Ningxia Hui Autonomous Region, 
Qinghai Province, Xinjiang Uygur Autonomous Region, Inner Mongolia Autonomous Region, G/SCM/N/95/CHN 
 
- 15 - 
 
  Guangxi Zhuang Autonomous Region, which are engaged in the  industries encouraged by the 
State as enlisted in the "Catalogue for the Guidance of Foreign Investment Industries" as well as engaged in the advantageous industries and proj ects approved by the State Council, shall be 
imposed the income tax at a reduced rate of fifteen per cent for another three year following the 
expiration of the period for "two years exemptio n and three years of fifty per cent reduction". 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2001-2010 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 XV.  
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises established in the poverty stricken areas 
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
To encourage the alleviation of poverty and accelerate the economic development of the 
poverty stricken areas  
4. Background and authority for the subsidy 
 
MOF, SAT, Office of Poverty Alleviation under the State Council, and National Development 
and Reform Committee (NDRC) 
 5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994 
 6. Form of the subsidy 
  Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
The income tax of the enterprises newly establis hed in the old revolution base areas during 
the revolution era, areas with ethnic groups residence, remote areas and poverty stricken areas 
may be exempt or reduced for three years. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
  1994-present 
 G/SCM/N/95/CHN 
 
- 16 - 
 
  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
XVI. 
 1. Title of the subsidy programme 
  Fiscal funds to alleviate poverty  2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To improve the production and living conditions and increase the income of the poverty 
stricken population, and to enhance the economic and social development of the poverty stricken 
areas.  4. Background and authority for the subsidy 
  MOF, Office of Poverty Alleviat ion under the State Council, NDRC 
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Nong No.18 of 2000 
 
6. Form of the subsidy 
  Financial appropriations 
 
7. To whom and how the subsidy is provided 
 
The funds are allocated by MOF to local governments according to the allocation 
programmes which are approved by the State Council Leading Group of Poverty Alleviation.  The funds are used by local governments to provide subsidies to individuals and organizations for 
individual subsidization, infrastructure construction and training programmes in the poverty 
stricken areas.  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Unit: million RMB 
2001 2002 2003 2004 Total 
9,090 9,590 10,390 11,177 40,247 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1980-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
XVII.  
1. Title of the subsidy programme 
 
Specific subsidy on agricultural production and construction in the poverty stricken areas of 
Hexi and Dingxi of Gansu Province and Xihaigu of Ningxia Hui Autonomous Region 
 G/SCM/N/95/CHN 
 
- 17 - 
 
  2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To accelerate economic and social developm ent of the poverty stricken areas of Gansu 
Province and Ningxia Hui Autonomous Region 
 4. Background and authority for the subsidy 
 
 MOF, Office of Poverty Alleviat ion under the State Council, NDRC 
 5. Legislation under which it is granted 
  MOF Circular Cai Nong No.67 of 2001  
6. Form of the subsidy 
 
 Financial appropriations  
7. To whom and how the subsidy is provided 
 
The funds are allocated by MOF to the local governments of Gansu Province and Ningxia Hui 
Autonomous Region to provide subsidies to individuals and organiza tions for individual 
subsidization, infrastructure construction, training programmes and transmigration and resettlement programmes in the poverty stricken  areas.  Prior to 2004, the two provincial 
governments would submit programmes applying for the subsidy first.  The funds would be 
allocated after the programmes were jointly approved by MOF, Office of Poverty Alleviation under the State Council and NDRC.  From 2004 on, fund s are allocated first to the two provincial 
governments which are required to submit programme later for record only instead of for 
approval. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2001 2002 2003 2004 Total 
200 200 200 200 800 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
  1983-2008  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
XVIII.  1. Title of the subsidy programme 
  Interests discount of poverty alleviation loans  
2. Period covered by the notification 
 
 2001-2004 
 G/SCM/N/95/CHN 
 
- 18 - 
 
  3. Policy objective and/or purpose of the subsidy 
 
To improve the production and living conditions and increase the income of the poverty 
stricken population, and to enhance the economic and social development of the poverty stricken 
areas 
 4. Background and authority for the subsidy 
 
MOF, Office of Poverty Alleviation under the State Council, People's Bank of China 
 5. Legislation under which it is granted 
  People's Bank of China Circular Yin Fa No.185 of 2001  
6. Form of the subsidy 
 
 Interests discount 
 
7. To whom and how the subsidy is provided 
 
Agricultural Bank of China collects and submits the information on loans provided to 
individuals and organizations in the poverty stricken areas on programmes of infrastructure 
construction and development of planting, breedin g and processing, etc.  After local financial 
authorities and local Offices of Poverty Alleviation jointly review and approve the programmes, 
MOF settles the interests discount with the headquar ter of Agricultural Bank of China. Since 2004, 
the funds of this interests discount are partially appropriated  to the governments of the poverty 
stricken counties which will independently choose the financial institutions to provide poverty 
alleviation loans and negotiate on the terms of interests discount settlement. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2001 2002 2003 2004 Total 
524.50 530 530 613.29 2197.79 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
  1986-present  10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
XIX. 
 1. Title of the subsidy programme 
  Preferential tax policies for enterp rises which utilize the waste materials 
 2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To protect the environment and encourage the recycling of resources 
 
4. Background and authority for the subsidy 
  MOF, SAT 
 G/SCM/N/95/CHN 
 
- 19 - 
 
  5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994  
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
The income tax of the enterprises which use the waste materials such as waste water, 
waster residue and waste gas as major materials for production may be exempt or reduced within 
five years.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1994-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
XX. 
 1. Title of the subsidy programme 
 
 Preferential tax policies for enterprises suffering from natural disasters  
 2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To reduce the losses due to natural disasters  
4. Background and authority for the subsidy 
 
 MOF, SAT 
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994 
 6. Form of the subsidy 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided 
 
The income tax of the enterprises suffering from natural disasters such as floods, fire or 
earthquakes etc. may be exempt or reduced for one year. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available G/SCM/N/95/CHN 
 
- 20 - 
 
    
9. Duration of the subsidy and/or any other time-limits attached to it 
  1994-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 XXI.  
1. Title of the subsidy programme 
 
 Preferential tax policies for  welfare enterprises 
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
 To encourage increase of job opportunities an d help the employment of the disabled people 
 4. Background and authority for the subsidy 
  MOF, SAT  
5. Legislation under which it is granted 
 
 SAT Circular Guo Shui Fa No.155 of 1994  
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
(1) The income tax paid by the enterprises in  which employees with disabilities such as 
blindness, deafness, dumbness and physical deform ities are over 50% of total employees may be 
one hundred per cent refunded.  (2) The income tax paid by the enterprises in which employees with disabilities such as blindness, deafness, dumbness and physical deformities are over 35% but 
less than 50% of total employees, if at a loss, may be partially or totally refunded to the extent to 
compensate the loss.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1994-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
XXII. 
 1. Title of the subsidy programme 
 
 Preferential tax policies for  enterprises making little profits  G/SCM/N/95/CHN 
 
- 21 - 
 
   
2. Period covered by the notification 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To reduce the burden of the enterprises making little profits to maintain job opportunities 
 4. Background and authority for the subsidy 
 
 MOF, SAT 
 5. Legislation under which it is granted 
  MOF Circular Cai Shui Zi No.009 of 1994  
6. Form of the subsidy 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
(1) The income tax enterprises whose annual taxable income is less than RMB 30,000 may 
be levied at a reduced rate of eighteen per cent .  (2) The income tax of enterprises whose annual 
taxable income is less than RMB 100,000 but more than RMB 30,000 may be levied at a reduced rate of twenty-seven per cent. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
  9. Duration of the subsidy and/or any other time-limits attached to it 
  1994-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
XXIII. 
 1. Title of the subsidy programme 
  Preferential tax policies for township enterprises  
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To reduce the burden of township enterprises due to the imperfect social security system 
and to encourage the township enterprise to impr ove the living and working conditions of their 
employees.  
4. Background and authority for the subsidy 
 
 MOF, SAT  G/SCM/N/95/CHN 
 
- 22 - 
 
  5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994  
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
Ten per cent of the income tax payable by th e township enterprise may be exempted to 
subsidize the social security expenses. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
  1994-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 XXIV. 
 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises wh ich provide employment for unemployed people 
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
  To increase and encourage employment  4. Background and authority for the subsidy 
  MOF, SAT  
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994 
 
6. Form of the subsidy 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
(1) The income tax of the newly established urban enterprises which employ unemployed 
people over sixty per cent of total employees within the year may be exempted for three years.  (2) The income tax of the above mentioned enterprises which newly employ unemployed people 
over thirty per cent of original total employees within the year may be reduced by one half for an 
additional two years after the three years pe riod of income tax exemption has expired. 
 G/SCM/N/95/CHN 
 
- 23 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1994-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 XXV. 
 
1. Title of the subsidy programme 
 
Preferential tax policies for scientific research institutions under transformation 
 2. Period covered by the notification 
 
 2003-2004 
 3. Policy objective and/or purpose of the subsidy 
 
To push forward the scientific research institutions to reform under the conditions of market 
economy 
 
4. Background and authority for the subsidy 
  MOF, SAT 
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No.137 of 2003 
 6. Form of the subsidy 
  Preferential tax treatment  7. To whom and how the subsidy is provided 
 
The income tax of the 242 scientific research institutions subordinate to the former 10 
National Bureaus administrated by the former State Economic and Trade Commission (SETC) and 
the 134 scientific research institutions subordinate to  11 Ministries such as Ministry of Construction 
which transformed into enterprises or be integrat ed into enterprises, as well as the scientific 
research institutions subordinate to the organizations under the State Council which transformed 
into enterprises or be integrated into enterprises after reviewed and approved by MOST and MOF, 
shall be exempted for five years since the day of the transformation registration.   8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2003-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available G/SCM/N/95/CHN 
 
- 24 - 
 
   
XXVI.  1. Title of the subsidy programme 
 
Preferential tax policies for the research and development of enterprises 
 
2. Period covered by the notification 
 
 2003-2004  
3. Policy objective and/or purpose of the subsidy 
 
To encourage the research and development of enterprises 
 
4. Background and authority for the subsidy 
 
 MOF, SAT 
 5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No.244 of 2003 
 6. Form of the subsidy 
  Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
The actual expenses of domestic industrial enterprises, regardless of the ownership, on 
research and development of new products, new te chnologies and new crafts which has increased 
ten per cent or more from the previous year, ma y be offset by 150% from the taxable income of 
the year.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2003-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
XXVII. 
 1. Title of the subsidy programme 
 
Preferential tax policies for the research an d development of foreign-invested enterprises 
 2. Period covered by the notification 
   2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To encourage the research and development of enterprises 
 G/SCM/N/95/CHN 
 
- 25 - 
 
  4. Background and authority for the subsidy 
 
 MOF, SAT  
5. Legislation under which it is granted 
 
 SAT Circular Guo Shui Fa No.173 of 1999 
 
6. Form of the subsidy 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
The actual expenses of foreign-invested enterprises on research and development conducted 
in China, which has increased ten per cent or more from the previous year, may be offset by 150% from the taxable income of the year. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
  9. Duration of the subsidy and/or any other time-limits attached to it 
  1999-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
XXVIII. 
 1. Title of the subsidy programme 
 
Preferential tax policies for enterprises transferring technology 
 
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To encourage the transfers of technology 
 
4. Background and authority for the subsidy 
 
 MOF, SAT 
 5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994 
 6. Form of the subsidy 
  Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
The income tax of enterprises profiting from technology transfers as well as from providing 
technology consultation, technology services and technology training in the transfer, may be 
exempt where the annual net income of the ente rprises is less than RMB 300,000, and where the G/SCM/N/95/CHN 
 
- 26 - 
 
  annual net income is more than RMB 300,000, the exceeding part shall be levied at the regular 
rate.  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
  2001-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 XXIX. 
 
1. Title of the subsidy programme 
 
Preferential tax policies for the key leading enterprises engaged in agricultural 
industrialization 
 2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To encourage the agricultural industrialization 
 
4. Background and authority for the subsidy 
 
 MOF, SAT, Ministry of Agriculture (MOA)  
 
5. Legislation under which it is granted 
 
MOA Circular Nong Jing Fa No.8 of 2000; 
MOA Circular Nong Jing Fa No.10 of 2000; SAT Circular Guo Shui Fa No. 124 of 2001. 
 
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
The income of the key leading enterprises, and of their holding subsidiary companies, 
obtained from planting, animal and fish farming,  and preliminary processing of agricultural and 
forest products may be exempt from income tax.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
  2001-present  G/SCM/N/95/CHN 
 
- 27 - 
 
  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
XXX. 
 1. Title of the subsidy programme 
 
Preferential tax policies for the enterprises engaged in forestry 
 2. Period covered by the notification 
 
2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage the development of forestry 
 
4. Background and authority for the subsidy 
 
MOF, SAT, State Forestry Administration (SFA) 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No.171 of 2001, 
MOF Circular Cai Shui No.49 of 1997 
 
6. Form of the subsidy 
 
Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
The income of the enterprises and institutions obtained from production of forestry, forestry 
seeds as well as from preliminary processing of forestry products may be exempt from income tax 
since January 1 2001.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2001-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  XXXI. 
 
1. Title of the subsidy programme 
 
Funds for supporting technological innovation for the technological small and medium-sized 
enterprises (SMEs)  
2. Period covered by the notification 
 
2001-2004 
 G/SCM/N/95/CHN 
 
- 28 - 
 
  3. Policy objective and/or purpose of the subsidy 
 
To support the SMEs in technology innovation and encourage the industrialization of the 
science and technology achievements 
 
4. Background and authority for the subsidy 
 
MOF, MOST 
 5. Legislation under which it is granted 
 
General Office of State Council Circular Guo Ban Fa No. 47 of 1999  
 6. Form of the subsidy 
 
Financial appropriations or loan interests discount  
 
7. To whom and how the subsidy is provided 
 
In the projects of financial appropriations, the SMEs of science and technology nature 
receive firstly seventy per cent of the total assisting amount approved to be granted to the 
enterprises.  In the projects of interest disco unt, the SMEs of science and technology nature 
receive firstly eighty per cent of the assisting fund for interest discount in accordance with the interest settlement document provided by the enterp rises.  The rest of the grant or assisting fund 
for interest discount shall be paid after the projects being completed as well as checked and 
accepted.  Each project shall receive no more than RMB 1 million and in particular cases no more than RMB 2 million.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2001 2002 2003 2004 Total 
800 500 500 500 2300 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1999-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available 
 XXXII. 
 
1. Title of the subsidy programme 
 
Development funds for SMEs 
 2. Period covered by the notification 
 
2004 
 3. Policy objective and/or purpose of the subsidy 
 
To support the SMEs development 
 
4. Background and authority for the subsidy 
 
MOF, NDRC 
 G/SCM/N/95/CHN 
 
- 29 - 
 
  5. Legislation under which it is granted 
 
Law of the People's Republic of China on Promotion of Small and Medium-sized Enterprises 
 
6. Form of the subsidy 
 
 Financial appropriations or loan interests discount  
 
7. To whom and how the subsidy is provided 
 
For the enterprises who invest into the project mainly with self-owned capital, the aid is 
given in the form of grant of no more than RMB 2 million or within the limit of the self-owned 
capital investment.  For the enterprises who invest into the project mainly with loans, the aid is given in the form of interest discount with a rate decided by the amount of loans and the interest 
rate in the same term published by People's Bank of China.  The period of each project enjoying 
the interest discount should be no more than two years and the total amount each project receives 
in the form of interest discount shou ld be no more than RMB 1.5 million. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
   Unit: million RMB 
2004 Total 
100 100 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2004-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 XXXIII. 
 
1. Title of the subsidy programme 
 
Fund for international market exploration by SMEs 
 2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
  To assist SMEs to explore the international market  
4. Background and authority for the subsidy 
 
 MOF, MOFCOM  
5. Legislation under which it is granted 
 
 MOF Circular Cai Qi No.467 of 2000;  
MOFTEC (MOFCOM) Circular Ji Cai Fa No.270 of 2001 
 6. Form of the subsidy 
  Financial appropriations  G/SCM/N/95/CHN 
 
- 30 - 
 
  7. To whom and how the subsidy is provided 
 
The fund is provided to SMEs or enterprises and organizations which provide services to 
SMEs for the purpose of:  (1) holding or participating in overseas exhibitions, (2) accreditation fee 
for quality management system, environment management system or for the product, (3) 
promotion in the international market, (4) exploring a new market, (5) holding trainings and symposiums, (6) overseas bidding.  The enterprises receive partial support to its international 
market exploration fees and the grant is allocated on the basis of the approved application for fund 
after market exploration activities are completed.   8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2001 2002 2003 2004 Total 
560 480 400 1000 2440 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1999-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available 
 
XXXIV.  
1. Title of the subsidy programme 
 
 Special fund for establishment of service system for SMEs  
 
2. Period covered by the notification 
  2003-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To assist entities to provide better services to SMEs 
 4. Background and authority for the subsidy 
  MOF  5. Legislation under which it is granted 
 
Law of the People's Republic of China on Pr omotion of Small and Medium-sized Enterprises 
MOF Circular Cai Jian No.124 of 2004 
 
6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
 
The fund is provided as grant to entities which provide services to SMEs.  For those who 
provide training services to the SMEs, rent charges of training venue, payments to the lecturer and expenses on teaching materials may be fully subsidized by the fund, and accommodations incurred 
by the training services may be subsidized at  a maximum of RMB 150 person/day.  For those who 
provide credit services to the SMEs, the actual expenses may be subsidized as appropriate.  For those who provide services for SMEs to start business, the actual expenses may be subsidized as G/SCM/N/95/CHN 
 
- 31 - 
 
  appropriate.  For those who provide management consulting services for SMEs, the actual 
expenses may be subsidized as appropriate.   8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
    Unit: million RMB 
2003 2004 Total  
50 50 100 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2003-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
 
XXXV.  
1. Title of the subsidy programme 
 
 Fund for subsidizing the training of the rural migrant labour force  
2. Period covered by the notification 
 
 2004 
 
3. Policy objective and/or purpose of the subsidy 
 
To improve the quality and the employment capabilit ies of the rural migrant workers, to facilitate 
the migration of the rural labour force and increase rural incomes  4. Background and authority for the subsidy 
  MOF, MOA   
5. Legislation under which it is granted 
 
 MOF Circular Cai Nong No.38 of 2004  
 
6. Form of the subsidy 
  Financial appropriations 
 
7. To whom and how the subsidy is provided 
 
The fund is provided to individuals, training institutions or other organizations chosen 
through bidding procedures to provide training services to farmers. MOF and MOA jointly review the application for fund submitted by local governments. After approval of the application, fund is 
granted by the MOF. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2004 total 
250 250 G/SCM/N/95/CHN 
 
- 32 - 
 
   
9. Duration of the subsidy and/or any other time-limits attached to it 
  2004-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 XXXVI.  
1. Title of the subsidy programme 
 
Outlay for training of youngster farmers on science and technology  
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
To assist the youngster farmers to obtain the knowledge on science and technology and to 
improve their management capacity   
4. Background and authority for the subsidy 
 
 MOF, MOA 
 
5. Legislation under which it is granted 
 
MOA Circular Nong Ke Jiao Fa No.8 of 1999 
 
6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
 
The fund is provided to youngster farmers of rural areas.  MOF and MOA jointly review the 
application for fund submitted by ocal governments.  After approval of the application, fund is granted by the MOF. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2001 2002 2003 2004 Total 
30 30 50 50 160 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
  1999-present  10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  G/SCM/N/95/CHN 
 
- 33 - 
 
  XXXVII. 
 1. Title of the subsidy programme 
 
 Fund for specialized c ooperatives of farmers 
 2. Period covered by the notification 
  2003-2004  3. Policy objective and/or purpose of the subsidy 
  To support and facilitate the development of specialized cooperatives of farmers  
4. Background and authority for the subsidy 
 
 MOF  
 
5. Legislation under which it is granted 
  MOF Circular Cai Nong No.87 of 2004 
 
6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
 
The fund is provided to qualified specialize d cooperatives of farmers. MOF reviews the 
application for fund submitted by local governme nts and grants the fund after approval of the 
application.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
nit: million RMB 
2003 2004 Total 
20 50 70 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
  2003-present  10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
XXXVIII. 
 1. Title of the subsidy programme 
  Subsidy for popularization of agricultural technologies   2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To popularize advanced and practical agricultural technologies  G/SCM/N/95/CHN 
 
- 34 - 
 
   
4. Background and authority for the subsidy 
  MOF  
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Nong No.81 of 2004 
 6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
 
The fund is provided to projects which embo dy geographic advantages and can serve as a 
model to other areas. MOF reviews the application for fund submitted by local governments and 
grants the fund after approval of the application. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
    Unit: million RMB 
2001 2002 2003 2004 Total 
135 175 175 200 685 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
  1999-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
XXXIX. 
 1. Title of the subsidy programme 
 
Subsidy for growing superior grain cultivars 
 
2. Period covered by the notification 
 
 2002-2004  
3. Policy objective and/or purpose of the subsidy 
 
To accelerate the upgrade of grains and crops, increase the output of agricultural products, 
improve the quality of agricultural prod ucts and guarantee food security.   
 4. Background and authority for the subsidy 
  MOF, MOA  5. Legislation under which it is granted 
  MOF Circular Cai Nong No.16 and17 of 2004  
6. Form of the subsidy 
 
 Financial appropriations G/SCM/N/95/CHN 
 
- 35 - 
 
   
7. To whom and how the subsidy is provided 
 
The fund is provided to grain cultivars supply enterprises in major crop-producing provinces 
chosen through bidding procedures. MOF and MOA jointly review the application for fund submitted 
by local governments. After approval of the application, fund is granted by the MOF. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2002 2003 2004 Total 
100 300 2852 3252 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2002-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 XL.  
1. Title of the subsidy programme 
 
Subsidy for purchasing agricultural machinery and tools 
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
 To enhance the contribution of agricultural science and technology, and push forward the 
development of agriculture and rural economies  
4. Background and authority for the subsidy 
 
 MOA, MOF  
 
5. Legislation under which it is granted 
  MOA Circular Nong Cai Fa No.6 of 2004 
 
6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
 
The fund is provided to individual farmers or services providers on agricultural machinery 
and tools that purchase agricultural machinery and tools through bidding procedures.  MOF and 
MOA jointly review the application for fund submitte d by local governments.  After approval of the 
application, fund is granted by the MOF. 
 G/SCM/N/95/CHN 
 
- 36 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2001 2002 2003 2004 Total 
20 20 40 70 150 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1999-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available 
 
XLI.  
1. Title of the subsidy programme 
 
Subsidy for actualizing agricultural technology 
 
2. Period covered by the notification 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To accelerate the actualization of agricultural technological achievements in agriculture, 
forestry, water conservation and irrigation, and im prove the capacity of agricultural innovation 
 
4. Background and authority for the subsidy 
 
 MOF, MOST  
5. Legislation under which it is granted 
 
 MOST Circular Guo Ke Ban Cai Zi No.417 of 2001 
 
6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
 
 The fund is provided to individuals or enterprises that are the right-holders for new 
agricultural technology.  MOF and MOST jointly review the application for fund submitted by local governments.  After approval of the application, fund is granted by the MOF. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
    Unit: million RMB 
2001 2002 2003 2004 Total 
400 200 200 250 1050 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2001-present G/SCM/N/95/CHN 
 
- 37 - 
 
   
10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available 
 
XLII.  
1. Title of the subsidy programme 
 
Fund provided for agricultural industrialization 
 
2. Period covered by the notification 
 
 2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To increase rural income, increase the scale and modernization of agricultural operation, and 
to improve the efficiency of agriculture in general   4. Background and authority for the subsidy 
  MOF   
5. Legislation under which it is granted 
 
 MOF Circular Cai Nong No.88 of 2004 
 
6. Form of the subsidy 
  Financial appropriation 
 
7. To whom and how the subsidy is provided 
 
 The fund is provided to qualified enterprise s.  The MOF reviews the application for fund 
submitted by local governments and grants th e fund after approval of the application. 
. 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
   Unit: million RMB 
2001 2002 2003 2004 Total 
70 100 100 100 370 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1998-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 XLIII.  
1. Title of the subsidy programme 
 
Fund for agricultural disaster relief 
 G/SCM/N/95/CHN 
 
- 38 - 
 
  2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To prevent and control agricultural disasters as well as provide disaster relief  
 
4. Background and authority for the subsidy 
  MOF, MOA 
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Nong No.232 of 2001  
 6. Form of the subsidy 
  Financial appropriations  7. To whom and how the subsidy is provided 
  The fund is provided to individuals or organi zations that fight against disasters and resume 
production afterwards.  MOF and MOA jointly revi ew the application for fund submitted by local 
governments. After approval of the application, fund is granted by the MOF. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
    Unit: million RMB 
2001 2002 2003 2004 Total 
942 635 735 905 3217 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
  1999-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
XLIV.  1. Title of the subsidy programme 
 
Fund provided to exempt from or reduce agriculture tax on farmers suffering from poor 
harvest after disasters 
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
 To relieve tax burden of farmers who suffered from disasters 
 4. Background and authority for the subsidy 
  MOF, SAT  G/SCM/N/95/CHN 
 
- 39 - 
 
  5. Legislation under which it is granted 
 
 Regulation of the People's Republic of China on Agricultural Tax; 
MOF Circular Cai Nong No.132 of 2001  
 
6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
 
 The fund is provided to farmers who suffered from poor harvest due to natural disasters. 
MOF and SAT jointly review the application for fund submitted by local governments and grant the fund after approval of the application. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
    Unit: million RMB 
2001 2002 2003 2004 Total 
4,000 1,000 2,000 1,500 8,500 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 Period when agriculture tax exists 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
XLV. 
 1. Title of the subsidy programme 
 
Subsidy for major flood control and drought resistance  
 2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To assist areas that suffer from major floods or drought, to prevent or fight against the disasters, and to assist the flood control of major rivers and lakes directly supervised by the 
central government. 
 4. Background and authority for the subsidy 
  MOF, Ministry of Water Resources (MOWR)  
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.30 of 2001 
 
6. Form of the subsidy 
 
 Financial appropriations 
 G/SCM/N/95/CHN 
 
- 40 - 
 
  7. To whom and how the subsidy is provided 
 
 The fund is provided to enterprises or related organizations. MOF and MOWR jointly review the application for fund submitted by local governments. After approval of the application, fund is 
granted by the MOF. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2001 2002 2003 2004 Total 
950 1364 1342 931 4587 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
  1953-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
XLVI.  1. Title of the subsidy programme 
 
Fund for construction of small irri gation facilities in rural areas 
 
2. Period covered by the notification 
 
 2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
  To support the projects which are closely related to working and living conditions of rural 
population such as rural water supply, rural energy  supply, small forestry, small projects on water 
and soil conservation and small irrigation facilities.  
4. Background and authority for the subsidy 
 
 MOF, MOWR 
 
5. Legislation under which it is granted 
 MOF Circular Cai Ban Nong No.74 of 2001  
 
6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
  The fund is provided to individuals, enterp rises or related organizations. MOF and MOWR 
jointly review the application for fund submitted by local governments. After approval of the application, fund is granted by the MOF. 
 G/SCM/N/95/CHN 
 
- 41 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
   Unit: million RMB 
2001 2002 2003 2004 Total 
100 100 100 100 400 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2001-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available 
 
XLVII.   
1. Title of the subsidy programme 
 
Fund for construction of small ecol ogical facilities in rural areas 
 
2. Period covered by the notification 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To support the projects which are closely related to working and living conditions of rural 
population such as rural water supply, rural energy supply, small forestry, small project on water and soil conservation and small irrigation facilities. 
 
4. Background and authority for the subsidy 
  MOF, SFA 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Ban Nong No.74 of 2001 
 6. Form of the subsidy 
  Financial appropriations  7. To whom and how the subsidy is provided 
  The fund is provided to rural forestry ar eas. The MOF reviews the application for fund 
submitted by local governments and grants th e fund after approval of the application. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2001 2002 2003 2004 Total 
100 100 100 100 400 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2001-present G/SCM/N/95/CHN 
 
- 42 - 
 
   
10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available 
 
XLVIII.  
1. Title of the subsidy programme 
 
Fund for projects on collection, reservation and utilization of rainfall 
 
2. Period covered by the notification 
 
 2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To support construction of rural irrigation infrastructure, improve rural living conditions and 
rural productivity  4. Background and authority for the subsidy 
  MOF, MOWR  
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.138 of 2004 
 
6. Form of the subsidy 
  Financial appropriations 
 
7. To whom and how the subsidy is provided 
 
 The fund is provided to individuals, enterp rises or related organizations.  MOF and the 
MOWR jointly review the application for fund subm itted by the local governments.  After approval 
of the application, fund is granted by the MOF. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2004 Total 
100 100 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2004-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  XLIX. 
 
1. Title of the subsidy programme 
 
Fund for interest discount of loans for the purpose of agricultural water-saving irrigation 
 G/SCM/N/95/CHN 
 
- 43 - 
 
  2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To support water-saving irrigation technology and the construction of areas using water-
saving irrigation 
 4. Background and authority for the subsidy 
 
 MOF, MOWR 
 5. Legislation under which it is granted 
 
MOF Circular Cai Yu No.388 of 2001  
 
6. Form of the subsidy 
 
 Interest discount  
7. To whom and how the subsidy is provided 
 
 The fund is provided to individuals, enterprises or related organizations.  MOF and MOWR 
jointly review the application for fund submitted by local governments.  After approval of the 
application, fund is granted by the MOF.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
   Unit: million RMB 
2001 2002 2003 2004 Total 
46.5 46.5 46.5 46.5 186 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1997-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 L.  
1. Title of the subsidy programme 
 
Subsidies for national key construction projects on water and soil conservation 
 
2. Period covered by the notification 
 
 2001-2004 
  3. Policy objective and/or purpose of the subsidy 
 
 To assist small scale farmland irrigation and water and soil conservation projects in rural 
areas  
4. Background and authority for the subsidy 
 
 MOF, MOWR G/SCM/N/95/CHN 
 
- 44 - 
 
   
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.402 of 1987 
 
6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
 
 The fund is provided to enterprises or related organizations. MOF and MOWR jointly review 
the application for fund submitted by local governments. After approval of the application, fund is granted by the MOF. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
    Unit: million RMB 
2001 2002 2003 2004 Total 
50 50 50 50 200 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1983-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
LI. 
 1. Title of the subsidy programme 
 
Special fund for projects on protection of natural forestry 
 2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To protect natural forestry resources and improve eco-environment  
4. Background and authority for the subsidy 
 
 MOF, SFA 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.151 of 2000 
 6. Form of the subsidy 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided 
  The fund is provided to state owned forestry enterprises which are subject to timber production reduction or lumbering ban to transf er and settle down the laid-off workers.  MOF G/SCM/N/95/CHN 
 
- 45 - 
 
  reviews the application for fund submitted by local governments and grants the fund after 
approval of the application.  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
    Unit: million RMB 
2001 2002 2003 2004 Total 
7146.95 7663.22 4966.52 4675.4 24452.09 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1998-2010  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
LII.  
1. Title of the subsidy programme 
 
Cash subsidy for returning cultivated land to forests 
 
2. Period covered by the notification 
 
 2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To improve the ecological environment, and to  subsidize the farmers who return cultivated 
land to forests for their necessary expenses such as medical care, education and daily expenses.  4. Background and authority for the subsidy 
  MOF, SFA  
5. Legislation under which it is granted 
 
State Council Circular Guo Fa No.10 of 2002 
 
6. Form of the subsidy 
  Financial appropriations 
 
7. To whom and how the subsidy is provided 
 
 The fund is provided to farmers who complete the returning of cultivated land to forests and 
are examined as qualified.  MOF reviews the application for fund submitted by local governments and grants the fund after approval of the application. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
   Unit: million RMB 
2001 2002 2003 2004 Total 
361.82 1155.82 2165.82 2365.82 6049.28 
  G/SCM/N/95/CHN 
 
- 46 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2000-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
LIII:  1. Title of the subsidy programme 
  Compensation fund for fore stry ecological benefits 
 
2. Period covered by the notification 
 
 2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
  To protect key forestry resources and ensure ecological security 
 
4. Background and authority for the subsidy 
 
 MOF, SFA 
 5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.7 of 2001 (abolished); MOF Circular Cai Nong No.169 of 2004 
 
6. Form of the subsidy 
 
 Financial appropriations 
 
7. To whom and how the subsidy is provided 
 
 The fund is provided to entities that manage the key national commonweal forests.  MOF 
reviews the application for fund submitted by local governments and grants the fund after 
approval of the application.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Unit: million RMB 
2001 2002 2003 2004 Total 
1000 1000 1000 2000 5000 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2001-2003 as pilot project 
2004-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  G/SCM/N/95/CHN 
 
- 47 - 
 
  LIV. 
 1. Title of the subsidy programme 
 
Interest discount for loans for the purpose of  desertification prevention in forestry  
 2. Period covered by the notification 
  2001-2004  3. Policy objective and/or purpose of the subsidy 
 
To encourage investment into the construction of forestry ecological environment, to 
facilitate the implementation of key forestry projects  such as protection of natural forest resources, 
the returning cultivated land to forests etc.  
 4. Background and authority for the subsidy 
  MOF, SFA  5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.137 of 2002 
 
6. Form of the subsidy 
 
 Interest discount 
 
7. To whom and how the subsidy is provided 
  The subsidy is provided to qualified forestry loans granted to individuals, enterprises and 
other organizations. MOF reviews the applicat ion for fund submitted by central and local 
authorities administering forestry and grants the fund after approving the application.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
    Unit: million RMB 
2001 2002 2003 2004 Total 
56 192.10 213.67 114.697 576.467 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1986-2004 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 LV. 
 
1. Title of the subsidy programme 
  Subsidy for prevention from and control of pest and disease in forestry  
 
2. Period covered by the notification 
 
 2001-2004 
 G/SCM/N/95/CHN 
 
- 48 - 
 
  3. Policy objective and/or purpose of the subsidy 
 
To strengthen the disease, pest and rat preventi on and control in forests, woods, seedling and 
bamboo forest.  
 
4. Background and authority for the subsidy 
 
 MOF, SFA 
 5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.69 of 2002 
 6. Form of the subsidy 
  Financial appropriations  
7. To whom and how the subsidy is provided 
 
 The fund is provided to individual, enterprise s and organizations engaged in forestry for the 
purpose of hazardous creature control.  An application for fund is submitted by local government. 
MOF and SFA jointly review the application and determine the amount of the subsidy.  After 
approval of the application, the MOF grants the fund.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
    Unit: million RMB 
2001 2002 2003 2004 Total 
75 80 91 92 338 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1980-2004 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 LVI. 
 
1. Title of the subsidy programme 
 
Subsidy for grass seed sowing by airplanes  
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
To support the airplane sowing of grass seed in major grassland areas 
 4. Background and authority for the subsidy 
  MOF, MOA  
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.139 of 2004 G/SCM/N/95/CHN 
 
- 49 - 
 
   
6. Form of the subsidy 
  Financial appropriations 
 
7. To whom and how the subsidy is provided 
 
 The fund is provided to organizations which ca rry out airplane sowing of grass seeds.  MOF 
reviews the application for fund submitted by local governments and grants the fund after 
approval of the application.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
  Unit: million RMB 
2001 2002 2003 2004 Total 
9 9 9 9 36 
  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1984-resent 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 LVII. 
 
1. Title of the subsidy programme 
 
Preferential tax policies for integrated circuit industry  
 2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
To encourage the development of integrated circuit industry 
 
4. Background and authority for the subsidy 
 
 MOF, SAT  
5. Legislation under which it is granted 
 
 MOF Circular Cai shui No.25 of 2000, 
 MOF Circular Cai shui No.70 of 2002, 
 MOF Circular Cai shui No.136 of 2002,  MOF Circular Cai shui No.140 of 2002, 
 MOF Circular Cai shui No.174 of 2004, 
 MOF Circular Cai shui No.40 of 2004  6. Form of the subsidy 
  Preferential tax treatment  G/SCM/N/95/CHN 
 
- 50 - 
 
  7. To whom and how the subsidy is provided 
 
 (1) Investor of integrated circuit producing or packaging enterprise who reinvests its share 
of profit obtained from the enterprise, after paying  income tax, directly into that enterprise by 
increasing its registered capital, or uses the profit as capital investment to establish other 
integrated circuit producing or packaging enterprises to operate for a period of not less than five years, shall be refunded forty pe r cent of the income tax already paid on the reinvested amount. 
 
(2) Domestic or foreign economic organizations investing its share of profit obtained inside 
China, after paying the income tax, into integr ated circuit producing or packaging enterprises 
located in the western regions as capital investment to operate for a period of not less than five 
years, shall be refunded eighty per cent of the income tax already paid on the reinvested amount. 
 
(3) Integrated circuit producing enterprises with investment more than RMB 8 billion or 
producing integrated circuit with a line width lesser than 0.25 um shall enjoy the same preferential 
tax treatment as to encourage the foreign investors who invest into energy and transportation sectors. 
 
(4) Accredited integrated circuit producing en terprises producing integrated circuit with a 
line width of 0.8 micron or less shall, from the year beginning to make profit, be exempted from 
income tax in the first and second years and allowed a fifty per cent reduction in the third to fifth 
years. 
 
(5) The VAT of enterprises as normal taxpayers selling independently designed integrated 
circuit products shall be refunded the portion over six per cent from June 2000 till the end of year 
2001, and be refunded the portion over three per cent from year 2002.  This policy ceased on April 1 2005. 
 
(6) The import VAT of domestically designed integrated circuit with self-owned intellectual 
property rights when processed overseas, shall be refunded the portion over six per cent from July 
1 2000 till 1 October 2004. 
 
(7) The imported raw materials for self production and expendables of the integrated circuit 
producing enterprises established in China with investment more than RMB 8 billion or producing 
integrated circuit with a line width lesser than 0.25 um shall be exempted from tariff and import 
VAT.  
(8) The imported integrated circuit producing technology and whole set of producing 
equipment, and the separately imported special equipment and apparatus to produce integrated 
circuit by the accredited integrated circuit producing enterprises shall be exempt from tariff and import VAT.  The above mentioned equipment and technologies shall excluded those listed in the 
"Catalogue for the imported products not subject to tax exemption in foreign invested projects" or 
in the "Catalogue for the imported products not subject to tax exemption in domestic invested projects". 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  9. Duration of the subsidy and/or any other time-limits attached to it 
 
(1) 2002-2010;  (2) 2002-2010;  (3) 1 July 2000-present;  (4) 2002-present;   (5) 24 June 2000-1 April 2005;  (6) 1 July 2000-1 October 2004;  (7) 1 July 2000-present;  
(8) 1 July 2000-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available G/SCM/N/95/CHN 
 
- 51 - 
 
   
LVIII.  1. Title of the subsidy programme 
 
Preferential tax policies for foreign invested enterprises and foreign enterprises which have 
establishments or place in China and are engaged in production or business operations purchasing 
domestically produced equipments . 
 2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
To attract foreign investment and support technology renovation. 
 
4. Background and authority for the subsidy 
 
 MOF, SAT  
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No.49 of 2000, SAT Circular Guo Shui Fa No.90 of 2000 
 
6. Form of the subsidy 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided 
 
 For the investment projects listed as encouraged category in the "Catalogue for the 
Guidance of the Foreign Investment Industries" of foreign invested enterprises and foreign enterprises which have establishments or plac e in China engaged in production or business 
operations, forty per cent of the expenses on purc hasing domestically produced equipments within 
the total investment of the project, or beyond the total investment of the project but for the 
purpose of upgrading the existing equipments and crafts, shall be deducted from the increment of 
income tax of that year compared to the previous year.  Herein the "domestically produced 
equipments" do not include those imported directly by other enterprises or those produced by processing trade and compensatory trade.  The dedu cted portion shall not exceed that year's total 
increment of income tax, and in the case where the total increment of income tax is less than forty 
per cent of such expenses, the exceeding part of  the deductible expenses can be deducted from 
the next year's increment of income tax.  Such postponement of deductibility shall not last for more than five years.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
1 July 1999-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 G/SCM/N/95/CHN 
 
- 52 - 
 
  LIX. 
 1. Title of the subsidy programme 
 
 Preferential tax policies for domestic enterprises purchasing domestically produced 
equipments for technology upgrading purpose  
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To encourage domestic investment and support the technology upgrading of enterprises 
 
4. Background and authority for the subsidy 
 
 MOF, SAT 
 5. Legislation under which it is granted 
 
MOF Circular Cai Shui No.290 of 1999  
 6. Form of the subsidy 
 
Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
 For the technology upgrading projects which ar e consistent with the state industrial policies 
of the domestic enterprises, forty per cent of th e expenses on purchasing domestically produced 
equipments shall be deducted from the increment o f  i n c o m e  t a x  o f  t h a t  y e a r  c o m p a r e d  t o  t h e  
previous year.  In the case where the total increment of income tax is less than forty per cent of such expenses, the exceeding part of the deduct ible expenses can be deducted from the next 
year's increment of income tax. Such postponement of deductibility shall not last for more than 
five years.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1 July 1999-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  LX. 
 
1. Title of the subsidy programme 
 
Exemption of tariff and import VAT for the imported technologies and equipments 
 2. Period covered by the notification 
  2001-2004  G/SCM/N/95/CHN 
 
- 53 - 
 
  3. Policy objective and/or purpose of the subsidy 
 
To reduce the investment cost of importing technologies or equipments, and to attract 
foreign investment and to encourage domestic investment  
 
4. Background and authority for the subsidy 
 
 MOF, SAT, MOFCOM, General Administration of Customs (GCA) 
  5. Legislation under which it is granted 
 
State Council Circular Guo Fa No.37 of 1997  
 6. Form of the subsidy 
 
Preferential tax treatment  
 
7. To whom and how the subsidy is provided 
 
 For the foreign invested projects listed as encouraged category in the "Catalogue for the Guidance of the Foreign Investment Industries", the equipments purchased for self-use within the 
total investment of the project, excluding those lis ted in the "Catalogue for the imported products 
not subject to tax exemption in foreign invested projects", shall be exempted from tariff and import VAT.   For the domestic invested projects listed in the "Catalogue of the Industries, Products 
and Technologies Particularly Encouraged by th e State", the equipments purchased for self-use 
within the total investment of the project, and the technologies, accessories and spare parts imported with the equipments as provided in the contract, excluding those listed in the "Catalogue 
for the imported products not subject to tax exemption in domestic invested projects", shall be 
exempted from tariff and import VAT.  For the projects using the loans provided by foreign 
governments or by international financial organizations, the equipments purchased for self-use within the total investment of the projects, excluding those listed in the "Catalogue for the 
imported products not subject to tax exemption in  foreign invested projects", shall be exempted 
from tariff and import VAT.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 
1997-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
LXI. 
 1. Title of the subsidy programme 
 
Preferential tax policies for enterp rises of grain or oil reserves  
 2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To ensure food security   G/SCM/N/95/CHN 
 
- 54 - 
 
  4. Background and authority for the subsidy 
 
  MOF, SAT  
5. Legislation under which it is granted 
 
MOF Circular Cai Shui Zi No.198 of 1999  
 
6. Form of the subsidy 
 
Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
 The sales of grain and edible oil by the state-owned enterprises which carry reserves of 
grain and oils for food security purposes are exempted from VAT. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1999-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  LXII. 
 
1. Title of the subsidy programme 
 
 Preferential tax policies for the imports of China Grain Reserves Corporation for the purpose 
of rotation of grain reserves   
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To secure food safety 
 
4. Background and authority for the subsidy 
 
MOF, SAT, GCA 
 5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 13 of 2001, 
MOF Circular Cai Shui No. 74 of 2004 
 
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
The collected import VAT on imported grain and oils imported by China Grain Reserves 
Corporation for the purpose of alternation or ro tation of reserves shal l be fully refunded.  G/SCM/N/95/CHN 
 
- 55 - 
 
   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
  2001-2005  10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
LXIII. 
 1. Title of the subsidy programme 
 
Preferential tax policies for the relief grain an d disaster relief grain, compensation grain for 
returning cultivated land to forests and to grass land, and the grain rations for the migrants from the reservoir areas. 
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
To ensure the functioning of special social responsibilities such as disasters relief and to 
realize social development objectives such as environmental protection  
4. Background and authority for the subsidy 
 
 MOF, SAT 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Shui Zi No. 198 of 1999, 
SAT Circular Guo Shui Fa No. 131 of 2001   
 6. Form of the subsidy 
  Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
VAT on the relief grain and disaster relief grain,  compensation grain for returning cultivated 
land to forests and to grassland, and the grain rations for the migrants from the reservoir areas 
operated by grain enterprises shall be exempted.  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1999-present, and for compensation grain for returning cultivated land to forests and to 
grassland 2001-present  G/SCM/N/95/CHN 
 
- 56 - 
 
  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
LXIV. 
 1. Title of the subsidy programme 
  Preferential tax treatment for tea sold in the border areas  2. Period covered by the notification 
  2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To ensure the supply to the border areas with minority ethnic groups residence.  
 
4. Background and authority for the subsidy 
  MOF, SAT 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Shui Zi No. 60 of 1994, MOF Circular Cai Shui No. 71 of 2001 
 6. Form of the subsidy 
  Preferential tax treatment  7. To whom and how the subsidy is provided 
 
The VAT on tea sold in the border areas produc ed by designated enterprises and distributed 
by designated distribution entities shall be exempted. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  9. Duration of the subsidy and/or any other time-limits attached to it 
  1994-2005  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
LXV.  1. Title of the subsidy programme 
 
Preferential tax treatment for imported products  for the purpose of replacing the planting of 
poppies 
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
 To support the replacement of the planting of poppies G/SCM/N/95/CHN 
 
- 57 - 
 
   
4. Background and authority for the subsidy 
 
MOF, SAT, GCA 
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No. 63 of 2000 
 6. Form of the subsidy 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided 
 
Tariffs and import VAT on imported products within the approved scope for the purpose of 
replacing the planting of poppies in the border  areas in Yunnan province shall be exempted.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
  2000-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
LXVI. 
 1. Title of the subsidy programme 
 
Preferential tax policies on imports of seeds (seedlings), breeding stock (fowl), fish fries 
(breeds) and non profit-making wild animals and pl ants kept as breeds during the period of the 
"Tenth Five-Year Plan" 
 2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
To introduce and promote improved breeds, to strengthen the protection of species 
resources, and to develop high-quality, productive and efficient agriculture and forestry industries. 
 
4. Background and authority for the subsidy 
 
MOF, SAT, MOA, SFA 
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No. 130 of 2001 
 6. Form of the subsidy 
  Preferential tax treatment  G/SCM/N/95/CHN 
 
- 58 - 
 
  7. To whom and how the subsidy is provided 
 
The import VAT for imported seeds (seedlings), breeding stock (fowl), fish fries (breeds) and 
non profit-making wild animals and plants kept as  breeds which are listed in the approved list of 
tax-free items within the approved quantity shall be exempted. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2001-2005 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
 LXVII.  
1. Title of the subsidy programme 
 
Preferential tax treatment for specimens of enda ngered wild animals and plants returned by 
the government of Hong Kong, China to the Office of the Administration of Import and Export of 
Endangered Species.  
2. Period covered by the notification 
 
 September 2000  
3. Policy objective and/or purpose of the subsidy 
 
To facilitate the implementation of the Convention on International Trade in Endangered 
Species of Wild Fauna and Flora  and to protect specimens of wild animals and plants. 
 4. Background and authority for the subsidy 
 
MOF, GCA, SFA 
 5. Legislation under which it is granted 
  MOF Circular Cai Shui No. 120 of 2000  
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
Tariff and import VAT on specimens of endanger ed wild animals and plants of the approved 
species and approved quantity which are returned by the Agriculture, Fisheries and Conservation 
Department under the government of Hong Kong, Ch ina to Office of the Administration of Import 
and Export of Endangered Species under the SFA shall be exempted. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available 
 G/SCM/N/95/CHN 
 
- 59 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
 September 2000  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
 
LXVIII.  1. Title of the subsidy programme 
 
Preferential tax treatment for endangered wild animals and plants as well as their products 
returned by foreign governments, by the governme nt of Hong Kong, China or the government of 
Macao, China to the Office of the Administration  of Import and Export of Endangered Species 
 2. Period covered by the notification 
  2002-2004  3. Policy objective and/or purpose of the subsidy 
 
To facilitate the implementation of the Convention on International Trade in Endangered 
Species of Wild Fauna and Flora  and to protect wild animals and plants as well as their products. 
 
4. Background and authority for the subsidy 
 
MOF, GCA, SFA 
 5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No. 8 of 2003 
 6. Form of the subsidy 
  Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
Tariff and import VAT on the endangered wild animals and plants as well as their products 
which are listed in the appendix to  the Convention on International Trade in Endangered Species of 
Wild Fauna and Flora , returned by foreign governments, by the government of Hong Kong, China, 
or by the government of Macao, China to the Office  of the Administration of Import and Export of 
Endangered Species under the SFA shall be exempted. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  9. Duration of the subsidy and/or any other time-limits attached to it 
  2002-present  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
 G/SCM/N/95/CHN 
 
- 60 - 
 
  LXIX. 
 1. Title of the subsidy programme 
 
Preferential tax treatment for building material products produced with integrated utilization 
of resources  
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To encourage the integrated utilization of resources and protect the environment 
 
4. Background and authority for the subsidy 
 
 MOF, SAT 
 5. Legislation under which it is granted 
 
MOF Circular Cai Shui Zi No. 44 of 1995, MOF Circular Cai Shui Zi No. 20 of 1996 
 6. Form of the subsidy 
  Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
The VAT on building material products made from waste residues shall be exempted.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
  1995-present  10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available  
 
LXX. 
 1. Title of the subsidy programme 
 
Preferential tax treatment for other products produced with integrated utilization of 
resources  
2. Period covered by the notification 
 
 2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage integrated utilization of  resources and protect the environment 
 4. Background and authority for the subsidy 
 
 MOF, SAT G/SCM/N/95/CHN 
 
- 61 - 
 
   
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 198 of 2001, MOF Circular Cai Shui No. 25 of 2004 
 
6. Form of the subsidy 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided 
 
(1) The VAT on products produced with integrated utilization of resources such as electric 
power produced from urban waste shall be refunded.  (2) The VAT on electric power produced with wind power and some of the new-type wall-building  materials produced from coal gangue, slush, 
oil shale shall be levied at a rate reduced by one half. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2001-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available  
 LXXI.  
1. Title of the subsidy programme 
 
Preferential tax treatment for imported products for scientific and educational purposes 
 
2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
 
 To promote the development of scientific research and educational causes 
 4. Background and authority for the subsidy 
  MOF, GCA  
5. Legislation under which it is granted 
 
 State Council Circular Guo Han No. 3 of 1997  
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
The tariff, import VAT and excise tax of products directly used in scientific research and 
education which are imported by scientific research institutions and schools for non profit-making purposes shall be exempted.  G/SCM/N/95/CHN 
 
- 62 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1997-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 LXXII. 
 
1. Title of the subsidy programme 
 
 Preferential tax treatment for imported products exclusively used by the disabled people 
 2. Period covered by the notification 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy 
  To facilitate the recovery of the disabled people  
4. Background and authority for the subsidy 
 
 MOF, GCA  
5. Legislation under which it is granted 
 
 State Council Circular Guo Han No. 3 of 1997 
 
6. Form of the subsidy 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided 
 
The tariff, import VAT and excise tax on import ed products exclusively used by the disabled 
people within the stipulated scope shall be exempted.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1997-present 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available 
 
LXXIII. 
 1. Title of the subsidy programme 
 
 Preferential tax treatment for products for the disabled people G/SCM/N/95/CHN 
 
- 63 - 
 
   
2. Period covered by the notification 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
 To facilitate the recovery of the disabled people 
 4. Background and authority for the subsidy 
 
 MOF, SAT 
 5. Legislation under which it is granted 
  MOF Circular Cai Shui Zi No. 60 of 1994  
6. Form of the subsidy 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
The VAT on artificial limbs, wheelchairs, orthopaedic appliances including those for upper 
limbs, lower limbs and spinal bend and lean etc. shall be exempted. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1994-present 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 LXXIV.  
1. Title of the subsidy programme 
 
 Preferential tax treatment to anti-HIV-AIDS medicine 
 
2. Period covered by the notification 
 
 2002/2003-2004 
 3. Policy objective and/or purpose of the subsidy 
 
 To push forward the prevention and cure of HIV-AIDS 
 4. Background and authority for the subsidy 
  MOF, SAT  
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 181 of 2003, MOF Circular Cai Shui No. 160 of 2002 
 G/SCM/N/95/CHN 
 
- 64 - 
 
  6. Form of the subsidy 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
(1) From 1 January 2002 to 31 December 2006, tariffs and import VAT and VAT in domestic 
circulation stages on imported anti-HIV-AIDS medi cine shall be exempted.  (2) From 1 July 2003 
to 31 December 2006, VAT in production and circulation stages on domestically produced anti-HIV-AIDS medicine produced by designated domestic producers shall be exempted.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
  2002/2003-2006  10. Statistical data permitting an assessment of the trade effects of a subsidy 
  Not available 
 
LXXV. 
 1. Title of the subsidy programme 
  Refund of import VAT of raw copper materials  2. Period covered by the notification 
  2003-2004  
3. Policy objective and/or purpose of the subsidy 
 
 To promote technology upgrading of enterprises 
 
4. Background and authority for the subsidy 
  MOF, SAT 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 81 of 2003, MOF Circular Cai Guan Shui No. 12 of 2005 
 6. Form of the subsidy 
  Preferential tax treatment  7. To whom and how the subsidy is provided 
 
Thirty per cent of import VAT on copper concentrate, waste copper and unrefined copper 
imported within the approved quantitative scope by  copper refineries with production or refining 
capacity of electrolytic copper over 30,000 tons  and which meet the criteria of environmental 
protection shall be refunded after collection.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 G/SCM/N/95/CHN 
 
- 65 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2003-2005  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
LXXVI.  1. Title of the subsidy programme 
  Preferential tax treatment for casting and forging products  
2. Period covered by the notification 
 
 2003-2004 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage the technology upgrading of ente rprises and the research and development of 
the casting and forging products 
 4. Background and authority for the subsidy 
  MOF, SAT  
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No. 96 of 2003  
6. Form of the subsidy 
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided 
 
From 1 January 2003 to 31 December 2005, the VAT on the casting and forging products 
which are used in producing machinery, manufactured and sold by the 284 specialized casting and forging enterprises listed in the annex to the Circular  shall be collected according to stipulations at 
first, and then thirty-five per cent of the actually collected VAT shall be refunded.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 2003-2005  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
LXXVII.  
1. Title of the subsidy programme 
 
 Preferential tax treatment to dies products  G/SCM/N/95/CHN 
 
- 66 - 
 
  2. Period covered by the notification 
 
 2003-2004  
3. Policy objective and/or purpose of the subsidy 
 
To encourage the technology upgrading of ente rprises and research and development of dies 
products 
 4. Background and authority for the subsidy 
 
 MOF, SAT 
 5. Legislation under which it is granted 
  MOF Circular Cai Shui No. 139 of 1998, MOF Circular Cai Shui No. 95 of 2003  
6. Form of the subsidy 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided 
 
 From 1 January 2003 to 31 December 2005, the VAT on the dies products manufactured and 
sold by the 160 specialized dies manufacturing enterprises listed in the annex to the Circular  shall 
be collected according to stipulations at first, and then seventy per cent of the actually collected VAT shall be refunded. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
 Not available 
 9. Duration of the subsidy and/or any other time-limits attached to it 
  2003-2005  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 
LXXVIII. 
 1. Title of the subsidy programme 
  Preferential tax treatment to numerically controlled machine tool products  
2. Period covered by the notification 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy 
 
To encourage enterprises to conduct research and development of numerically controlled 
machine tool products 
 4. Background and authority for the subsidy 
  MOF, SAT  G/SCM/N/95/CHN 
 
- 67 - 
 
  5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 47 of 2000,  MOF Circular Cai Shui No. 119 of 2001, 
MOF Circular Cai Shui No. 97 of 2003 
 6. Form of the subsidy 
  Preferential tax treatment  7. To whom and how the subsidy is provided 
 
From 1 January 1999 to 31 December 2005, the VAT on numerically controlled machine tool 
products produced and sold by certain numerically controlled machine tool manufacturing 
enterprises shall be refunded after collection.  
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
  Not available  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
 1999-2005 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
 Not available 
 Note: 1. The 12 border cities, counties or towns refe r to Heihe, Suifenhe in Heilongjiang Province, 
Hunchun in Jilin Province, Manzhouli in Inner Mongolia Autonomous Region, Yining, Bole, Tacheng 
in Xinjiang Uygur Autonomous Region, Pingxian g, Dongxing in Guangxi Zhuang Autonomous 
Region, Wanting, Ruili and Hekou in Yunnan Province. 
 
2. The costal economic open areas firstly re fer to the 14 coastal open cities of Dalian, 
Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyu ngang, Nantong, Shanghai, Ningbo, Wenzhou, 
Fuzhou, Guangzhou, Zhanjiang, Beihai. In 1985 the Yangtze River Delta, the Pearl River Delta and 
the triangle area in south Fujian Province of Xiamen, Zhangzhou and Quanzhou were open to be included in the costal economic open areas.  In 1988 the area was further expanded to the 
Liaodong Peninsula, Shandong Peninsular and etc. to include 153 cities and counties in Tianjin 
Municipality, Hebei Province, Liaoning Province, Jiangsu Province, Zhejiang Province, Fujian 
Province, Shandong Province and Guangxi Zhuang  Autonomous Region. In 1990 the city of Jinan 
was open. In 1992 5 cities along the Yangtze river namely Chongqing, Yueyang, Wuhan, Jiujiang, 
Wuhu, 6 provincial capital cities in border and coastal provinces and autonomous regions namely 
Harbin, Changchun, Hohhot, Shijiazhuang, Nanning and Kunming and 11 provincial capital cities of inland provinces and autonomous regions name ly Taiyuan, Hefei, Nanchang, Zhengzhou, 
Changsha, Chengdu, Guiyang, Xi'an, Lanzhou, Xining and Yinchuan began to implement the 
policies of the costal economic open areas. In 1993 the city of Huangshi along the Yangtze River 
also began to implement the policies of the costal economic open areas.  
3. The Three Gorges of Yangtze River Economic Zone refers to Yichang County, Zigui County 
and Xingshan County under the Yichang City of the Hubei Province, Badong County of the Enshi 
Tujia and Miao Autonomous Prefecture of the Hubei Province, Wushan County, Wuxi County, 
Fengjie County, Yunyang County, Kai County and Zhong County under the Wanxian City of 
Sichuan Province, Shizhu County under the Qianjiang Prefecture and Fengdu County, Wulong County under the Fuling Prefecture of the Sichuan Province, and Changshou County, Jiangbei 
County, Ba County and Jiangjin City under Chongqing Municipality. 
 4. The western regions refer to Chongqing Muni cipality, Sichuan Province, Guizhou Province, 
Yunan Province, Tibet Autonomous Region, Shaanxi Province, Gansu Province, Ningxia Hui G/SCM/N/95/CHN 
 
- 68 - 
 
  Autonomous Region, Qinghai Province, Xinjiang  Uygur Autonomous Region, Inner Mongolia 
Autonomous Region, Guangxi Zhuang Autonomous Region.  
__________