G/SCM/Q2/CHN/57  
 
28 January 2016  
(16-0604)  Page: 1/17  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
QUESTIONS FROM THE UNITED  STATES REGARDING THE 
NEW AND FULL NOTIFICATION OF CHINA1 
The following communication, dated 25 January 2016, is being circulated at the request of the 
Delegation of the United States.  
_______________ 
  GENERAL 
1. The United States appreciates China's efforts to notify its central government subsidy 
programmes. However, we note that subsidies provided at the sub-central government level were not included in China's notification and, indeed , China has never notified a sub-central program. 
Article 25 of the Agreement on Subsidies and Countervailing Duties (Subsidies Agreement) 
specifically requires that Members include in their notification information on any subsidies granted or maintained within their territory, which includes subsidies at both the central and sub-central 
levels. Please indicate when China will comprehensively notify  subsidies provided at the 
sub-central level.  2. When answering questions on its previous notification, China clarified that the phrase 
"Financial appropriations" effectively means that grants are provided under the program. Is this 
true in all instances in which the phrase "Financial appropriations" is used in China's most recent notification? 
 
QUESTIONS REGARDING NOTIFIED PROGRAMS 
3. The United States has identified numerous programs included in China's submission that do 
not appear to meet the notification requirements  of Article 25.1 of the Subsidies Agreement. The 
United States has previously highlighted what it considers to be "over-reporting" of subsidy programs by China in its prior notifications.
2 By including such programs in its notification, China 
artificially inflates the number of programs it has notified. The United States considers that up to 
one-quarter of the programs contained in China' s third subsidy notification are reported on 
questionable basis. These include, inter alia , programs that do not appear to be specific to an 
enterprise, industry or groups thereof; do not benefit industrial enterprises; are provided to 
individuals; or constitute support for general infrastructure or disaster relief. Examples of these 
programs include:  
 
 Program 12 -- Special Fiscal Fund to Alleviate Poverty 
 Program 23 -- Preferential tax treatment for the public buses and trolleybuses purchased 
by urban public transportation enterprises 
 Program 28 -- Preferential VAT policies for enterprises that employ disabled people 
                                               
1 G/SCM/N/220/CHN - G/SCM/N/253/CHN - G/SCM/N/284/CHN. 
2 G/SCM/N/123 CHN; G/SCM/N/155 CHN; G/SCM/N/186 CHN; G/SCM/N/220/CHN; G/SCM/N/253/CHN; 
G/SCM/N/284/CHN. G/SCM/Q2/CHN/57 
 
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   Program 29 -- Preferential tax treatment for imported products exclusively used by the 
disabled people 
 Program 44 -- Fund for subsidizing the training of rural migrant labor force 
 Program 60 -- Preferential tax treatment for endangered wild animals and plants as well 
as their products returned by foreign governments, by the government of Hong Kong 
SAR, China or the government of Macao SAR, China to China. 
 Program 82 -- Subsidy fund for producing goods specially needed by the ethnic 
minorities. 
 Program 86 -- Preferential tax treatment for anti-HIV-AIDS medicine. 
The United States has specific questions conc erning these programs, which are as follows: 
 
Program 12 – Special Fiscal Fund to Alleviate Poverty 
 4. Please explain the criteria for eligibility that individuals or other organization must meet to 
receive funding under this program. How is "industry with distinctive characteristics in poverty 
stricken areas" defined under this program?  
 
5. Are there certain activities that recipients of funding under this program must perform?  
 Program 23 -- Preferential tax treatment for the public buses and trolleybuses purchased by urban public transportation enterprises  
 
6. Are commercial entities, e.g., industrial manufacturers of goods, eligible for the assistance 
provided under this program? 
 
Program 28 -- Preferential VAT policies for enterprises that employ disabled people 
 
7. Is any enterprise that employs disabled people, in any industry and without regard to 
location, eligible for assistance under these pr ograms? How many enterprises received or were 
eligible for assistance under these programs each year covered by the reporting period?  
Program 29 -- Preferential tax treatment for im ported products exclusively used by the 
disabled people.  
8. What enterprise or industry in China benefits when an imported product used exclusively by 
disabled people receives preferential tax treatment?   
Program 44 -- Fund for subsidizing the training of rural migrant labor force. 
 9. Please explain the criteria for eligibility that individuals, training institutions or other organization must meet to receive funding under this program. What is the nature of the financial 
contribution(s) provided under this program?  
 10. Are commercial entities, e.g., industrial manufacturers of goods, eligible for the assistance 
provided under this program?  
 Program 60 -- Preferential tax treatment for en dangered wild animals and plants as well 
as their government of Macao SAR, China to China. 
 11. What are the eligibility criteria of this program?  
 
12. Who are the recipients of the assistance und er this program? Are commercial entities, e.g., 
industrial manufacturers of goods, eligible for the assistance.  
 
Program 82 -- Subsidy fund for producing goods specially needed by the ethnic 
minorities.  G/SCM/Q2/CHN/57 
 
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  13. Please explain the nature of the financial co ntribution(s) provided under this program, e.g., 
grants, loans, etc.  14. How many enterprises received assistance under  this program during the reporting period?  
 
Program 86 -- Preferential tax trea tment for anti-HIV-AIDS medicine. 
 
15. What is the value of imported anti-HIV-AIDS medicine during the years included in the 
reporting period? What is the value of such do mestically produced medicine during the same 
period?  
16. What commercial enterprise or industry in Ch ina benefits from preferential tax treatment for 
anti-HIV-AIDS medicine?  
 
OTHER PROGRAMMES 
Steel 
 
17. The Steel Industry Development Policy , National Development and Reform Commission, 
Order No. 35 (8 July 2005) as well as the revised 2015 draft for comment, outlines policy measures for supporting steel enterprises and provides policy guidance on steel capacity and production, including support through preferential taxation, interest subsidies, and research 
funding. Specifically, the 2005 policy states:  
 
Article 16 We should support and organize the implementation of equipment 
localization of the iron and steel industry , enhance the research and development as 
well as designing and manufacture levels of major technical equipment of our iron and steel industry. For a major iron and steel project that is based on home-made 
equipment as newly developed, the state shall grant policy supports in such aspects 
as taxation, interest subsidy and scientific research funds. 
Article 18 The policies of imported technologies and equipment: enterprises are 
encouraged to use home-made equipment and technologies and reduce export. For 
any equipment or technology that cannot be produced domestically or fails to meet 
the demand and, thus, must be introduced from abroad, the introduced equipment or technology shall be advanced and practical. For the equipment in large amount and 
big scope, we should organize and implemen t the localized production thereof from 
now on. Enterprises are prohibited from  adopting any second-handed backward 
production equipment of iron and steel from home or abroad that has been 
eliminated. 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified purs uant to Article 25 of the Subsidies Agreement.
3  
 
18. The Steel Industry Adjustment and Revitalization Plan , Guo Fa [2009] No. 6 
(20 March 2009)4 outlines policy measures for supporting steel enterprises. For example:  
 
IV. Policy measures 
…  (III) Strengthen input in technological progress and technical reconstruction. 
Special funds are available for the investment in capital construction within the central 
budget, and loans for supporting the technical reconstruction of steel enterprises (excluding the renovation of power-saving technology), technological R&D and technology introduction, to push forward the technological progress of steel industry. 
Adjust the steel structure to improve the qu ality of steel products. Further increase 
                                               
3 See also, G/SCM/Q2/CHN/15, 13 October 2005. 
4 See also, G/SCM/Q2/CHN/51, 14 October 2014, program #2. G/SCM/Q2/CHN/57 
 
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  the financial incentive for power-saving technology to encourage and support the steel 
enterprises to positively carry forward the renovation of power-saving technology. 
… (IX) Implement financing policy. 
Strengthen financial support for backbone steel enterprises. Give support to the 
projects which are subject to the environmental protection, agrarian law and portfolio management requirements, and enterprises which implement the merger, 
reorganization; go global, and make technological progress in terms of issuing stock, 
corporate bond, middle-term bill, short term financing and bank loan as well as absorbing the privately collected equities. Avoid the capital chain rupture of the large-sized backbone enterprises. If necessary,  make available loan and discounts, and 
continuously implement financing restrictions for projects without approval and the 
enterprises with backward productive capacity. 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 19. The Anhui Province Steel and Iron Indust ry Adjustment and Revitalization Plan , 
Wan Zheng [2009] No. 56 (18 August 2009)
5 outlines policy measures for supporting the 
provinces steel enterprises. For example:  
IV. Policy Measures 
… 
(II) Set up finance and tax interest allocation mechanisms in locations with resources 
and locations where processing is occurring, intensify prospecting and direct mineral 
resources to advantaged enterprises like MA Steel. Preferentially allocate proven 
reserves of exploitable iron ore (4 billion tons, mainly around Ningwu, Huoqiu and Lujiang) in Anhui to advantaged enterprises like MA Steel, allow no new mining claims 
in the areas around the mines of advantaged enterprises like MA Steel, and support 
MA Steel in integrating and developing iron ore resources. Encourage MA Steel to take part in earlier-stage exploration of iron ore resources in Anhui and add to its resource reserves. 
a. Please describe the preferential allocation of iron ore under this measure. 
b. Given the language of the cited measure, please explain why this measure and 
implementing measures were not notified purs uant to the notification requirements of 
Article 25 of the Subsidies Agreement. 
20. The Qinghai Province Opinions on the Implem entation of Steel and Iron Industry 
Adjustment and Revitalization , Qing Zheng [2009] No. 33 (25 June 2009)
6 outline policy 
measures for supporting steel enterprises in the province. For example: 
 
V. Major Policies …  
(III) Strengthen fiscal and taxation policy support. Strengthen fiscal input into 
technical progress and upgrading, and a pply funds primarily toward preliminary 
project work, interest discounts for independent innovation and technical progress, 
and energy conservation and emissions redu ctions etc. while guiding enterprises to 
increase their input and speed up industri al upgrades and transformation. Promote 
development of high-quality new special steel products, promote utilization of 
low-grade iron ore, and promote developmen t of direct reduced iron. Actively carry 
out the implementation of relevant supplementary policies such as the reform of the 
                                               
5 See also, G/SCM/Q2/CHN/51, 14 October 2014, program #6. 
6 See also, G/SCM/Q2/CHN/51, 14 October 2014, program #11. G/SCM/Q2/CHN/57 
 
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  national taxation system on enterprise income taxes and value-added taxes, etc., and 
guarantee the implementation of various preferential policies; research and formulate 
relevant supplementary fiscal and taxation policies and support the development of key industries according to the taxation policies supporting industrial development 
that have been formulated by the state and the practical conditions of the province. 
 (IV) Strengthen financial service and support. The financial department shall take the 
initiative to strengthen communication and coordination with enterprises, and do well 
in its financial service. Strengthen credit support for key technical upgrades, energy-saving technical upgrades, energy conservation and emission reduction, and construction of key projects to guarantee project construction. 
(V) Improve the withdrawal mechanism for backward production capacity. Support 
iron and steel enterprises to properly relocate employees, shift their enterprise production and deal with debt resolution etc. during the elimination of backward 
production capacity, and promote social harmony and stability. Meanwhile, grant 
interest discounts or investment subsidies to projects that adopt new technology for energy-saving technological upgrades. Strictly carry out a responsibility system for 
energy conservation, emissions reductions, and elimination of backward production 
capacity; strengthen supervision and inspection of the elimination of backward production capacity. Relevant departments shall not process any paperwork for projects that are inconsistent with the rule s, nor those that belong to projects with 
high energy consumption and high emissions. 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 
21. China has never notified a steel subsidy program at either the central or sub-central level. Is it China's position that it has never provided a specific subsidy to the steel industry since becoming 
a WTO Member? 
 Non-ferrous Metals  
22. The State Council  Non-Ferrous Metals Industry Ad justment and Revitalization Plan , 
Guo Fa [2009] No. 14 (12 May 2009)
7 outlines guiding principles and policy measures for 
supporting the non-ferrous metals industries including tax rebates, special funds, and financing 
support. For example:  
 
Article 4.2 Work out plans for further expanding the scale of state purchase and 
storage of non-ferrous metals based on situational needs… 
Article 4.3 Allocate a special fund for the newly added central government 
investments to support the technology research and development and technology transformation in the non-ferrous metals industries through the means of discount 
interest loans. Increase the support of financial rewards for the transformation of 
energy saving technologies, encourage and guide enterprises to vigorously advance the transformation of energy saving technologies. 
Article 4.4 Promptly promote the launch of direct power-purchase pilot projects. The 
focus of support goes to backbone electrolytic aluminum enterprises that are conducive to industrial restructuring and meet the national environmental and land 
laws and investment management regulations to reduce production cost and inject 
greater vitality into enterprises... 
Article 4.9 Increase support to the financing of backbone non-ferrous metal 
enterprises. For projects that meet indust rial policies, environmental and land laws 
and regulations, and investment management provisions as well as enterprises that 
conduct merger, reorganization, "go global", and technological transformation, give support in terms of stock, enterprise bo nd, corporate liability, and bank loans… 
                                               
7 See also, G/SCM/Q2/CHN/51, 14 October 2014, program #22. G/SCM/Q2/CHN/57 
 
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  a. Please explain the mechanism under which non-ferrous metals were bought and stored 
under this measure. Was the objective of the mechanism to support prices on non-ferrous metals in China? Please describe how this mechanism operated. 
b. Given the language of the cited measure, pl ease explain why this measure and related 
implementing measures were not notified pursuant to Article 25 of the Subsidies 
Agreement. 
23. The Hunan Province Non-Ferrous Metals In dustry Revitalization Implementation 
Plan (2009-2011) , Hunan Provincial People's Government, Xiang Zheng Fa [2009] No. 17 
(3 June 2009)
8 outlines policy measures for supporting the non-ferrous metals industries in Hunan 
province. For example:  
Article 4.3 Increase credit availability, redu ce the threshold for working capital loans, 
and ensure reputable enterprises that have orders receive credit support in time. Give greater credit support to enterprises undertaking major construction projects … 
Article 4.4 … Build a provincial non-ferrous metal purchase and storage system. By 
way of 'government control, bank loan, financial support, enterprise storage,' provincial financial [shall] coordinate, focusing on the purchase and storage of 
non-ferrous metals including copper, aluminum, zinc, tungsten, antimony, bismuth, 
and indium. The scale of the first phase of purchase and storage is RMB 1 billion to 
RMB 1.5 billion. 
a. Please explain the mechanism under which non-ferrous metals were bought and stored 
under this measure. Was the objective of the mechanism to support prices for 
non-ferrous metals in China? Please describe how this mechanism operated. How many phases of the program were there and what was the total amount purchased? 
b. Given the language of the cited measure, pl ease explain why this measure and related 
implementing measures were not notified pursuant to Article 25 of the Subsidies Agreement. 
24. The Jiangsu Province Non-Ferrous Metals In dustry Adjustment and Revitalization 
Plan Outline  (Jiangsu Provincial People's Government, Su Zheng Fa [2009] No. 86 
(31 May 2009)
9 outlines policy measures for supporting the non-ferrous metals industries in 
Jiangsu province. For example: 
 
Article 4.1 Practically implement all national  and provincial policies for preferential 
treatment of the non-ferrous metal industry and strive to solve development problems 
and questions that exist currently… give support to key enterprises that fit with 
national industrial policies in terms of funding, electricity use, land use, and other such factors. Strive to develop and open a more direct power supply in our province 
for key aluminum smelting enterprises. 
Article 4.2 Make vigorous and positive use of indigenously-developed advanced and 
applied technologies to transform the industry…various financial programs should be made available to support key large-scale projects, key technologies, energy savings, 
emissions reduction, and elimination of outdated equipment. 
a. Please describe the support provided to key enterprises for electricity use. 
b. Given the language of the cited measure, please explain why this measures and other 
related implementing measures were not notified pursuant to Article 25 of the Subsidies 
Agreement. 
25. The Qinghai Province Opinions for the Implementation of Non-Ferrous Metals 
Industry Adjustment and Revitalization , Qinghai Provincial People's Government,  Qing Zheng 
                                               
8 See also, G/SCM/Q2/CHN/51, 14 October 2014, program #27. 
9 See also, G/SCM/Q2/CHN/51, 14 October 2014, program #28. G/SCM/Q2/CHN/57 
 
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  [2009] No. 31 (25 June 2009)10 outlines policy measures for supporting the non-ferrous metals 
industries in Qinghai province. For example:  
Article 4.1 Practically implement all national and provincial policies for preferential 
treatment of the non-ferrous metal industry … give support to key enterprises that fit 
national industrial policies in terms of funding, electricity use, land use, and other such factors. Strive to develop and open a more direct power supply in our province for key 
aluminum smelting enterprises. 
Article 4.4: Strengthen financial services and support. Financial institutions are to take 
the initiative to strengthen communication between local governments and banks and emphasize strongly the focus on industrial financial services. Increase the focus on 
technological innovation, energy transforma tion, energy conservation projects, and 
key industrial credit support to ensure project completion. Achieve further innovation in financing methods, continue strengthening bank-government and bank-industry 
cooperation, and encourage enterprises to  expand the scale of corporate bond 
financing through the issuance of enterprise bonds, short-term financing bonds, medium-term notes, and other means. Also support competitive enterprises with 
public financing and guide existing public companies to further expand the scale of 
financing." 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 
26. China has never notified a non-ferrous subsidy program at either the central or sub-central level. Is it China's position that it has never provided a specific subsidy to the non-ferrous industry 
since becoming a WTO Member? 
 Semiconductors 
 
27. In June 2014, the State Council released the Guidelines to Promote National Integrated Circuit (IC) Industry Development. Under thes e Guidelines, the State Council approved the 
establishment of a National IC Investment Fund Co. Ltd (IC Fund), pursuant to the State Council 
Notification Regarding National Integrated Circuits Industry Investment Fund Establishment 
Approval (Guo Han [2014] No. 48). The two largest sh areholders of the IC Fund are the Ministry of 
Finance (MOF), and the China Development Bank. According to an official Ministry of Industry & 
Information Technology (MIIT) report, the remain ing shareholders, all state-owned enterprises, 
invested in the Fund under the guidance of their respective administrative management agencies, including both MIIT and MOF. The IC Fund operates  under the direction of the National IC Industry 
Leading Small Group, which is chaired by a Vice Premier of the State Council. The MIIT Electronics 
Information Department and the MOF Economic Construction Department are responsible for operational oversight including "guiding the operations of the IC Fund," such a directing and monitoring key investments and projects undertaken by the IC Fund. 
 
The purpose of the IC Fund is to promote the gr owth of China's IC industry in line with the 
strategic objectives of the State outlined in the Guidelines, with the funding provided in the form of 
an equity stake ownership to allow the government to take an active role as a shareholder. The 
State Council has required that "no less than 60%" of the IC Fund be invested into the IC manufacturing sub-sector. Public sources report that this will allow the government to monitor the 
investee's management decision making process and will assist the government in balancing its 
national strategy for the development of this industry. Under these Guidelines, it has been reported that China will provide 120 billion yuan between 2014 -2017 and that local governments will also create their own IC Investment Funds. It has also been reported that the IC Fund will not 
impose strict return requirements on the firms receiving these investment funds. For example, 
M O F  a n d  C B D  o f f i c i a l s  h a v e  s a i d  t h a t  " s t r a t e g i c  i n v e s t m e n t s "  m a d e  b y  t h e  I C  F u n d  w i l l  n o t  b e  made based on market conditions. Executives of the IC Fund and its affiliated entities have publicly 
stated that "the IC Fund is not a pure financial investment, it is a policy tool." (See, e.g., Asia 
Semiconductor Sector; SEMICON China Showcases the Emerging Local Ecosystem from Credit Suisse (23 March 2015) at pages 3-7, MIIT 2015 Annual Electronics Industry Work Meeting, and 
public reports of the March 19 Shanghai IC  Equipment Industry Development Form) The 
                                               
10 See also, G/SCM/Q2/CHN/51, 14 October 2014, program #29. G/SCM/Q2/CHN/57 
 
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  2014 Guidelines to Promote National Integrated Circuit (IC) Industry Development appear to 
provide a financial contribution and benefit under Article 1 of the Subsidies Agreement because there is a provision of government funds and the government investment is based upon national policy goals for the development of the IC industry  without the expectation of specific rates of 
return. In addition, this program appears to be specific under Article 2 of the Subsidies 
Agreement because the funds are provided to the IC industry.  
Please explain why this measure and related implementing measures were not notified pursuant to 
the notification requirements of Ar ticle 25 of the Subsidies Agreement. 
 28. In Tianjin Economic and Technological De velopment Area Interim Measure on 
Promoting Integrated Circuit Design Industry Development  (Tianjin Economic and 
Technological Development Area Management Commission (19 June 2013)) various support measures are described. These include: 
 
Article 4. [Special Fund] … Set up a "IC Design Industry Promotion Special Fund", used for service platform software and hardware environmental construction, 
operations expenditure support, and design enterprise R&D, tapes, and 
industrialization financial support and other expenditure subsidies.  
Article 10. [R&D Support] To enterprises that participate in multi-project wafer (MPW) 
products, give the project expenditure 50% subsidies; to enterprises that use service 
platform EDA [Electronic Design Automation] software, give complete reduction or 
waiving of expenditures; for other R&D expenses, beginning from the year of enterprises' establishment within 5 years, give 10% support subsidies to enterprises 
R&D expenses; the above support and subsidy fees does not exceed RMB 5 million at 
the highest every year. 
Article 12. [Industrialization Support]  Beginning the month the enterprises pays VAT, 
give financial support that is equivalent to the enterprise's paid VAT, and every 
enterprises' subsidy does not exceed 3 years, and the accumulated amount in 3 years does not exceed RMB 5 million. 
Given the provisions cited above, please explain why this measure and other related implementing 
measures were not notified pursuant to Article 25 of the Subsidies Agreement. 
 29. In Shanghai Municipality Measure for the Administration of the Software and 
Integrated Circuit Industry Development Special Fund  (Shanghai Municipality Economic and 
Informatization Commission, Shanghai Municipality Bureau of Finance, Hu Jing Xin Fa [2012] No. 965 (28 December 2012)) various support measures are described. These include: 
 
Article 9 (Support Method) 
The special fund uses the methods of free subsidies and rewards to be arranged and 
used. 
Article 10 (Support Standards) 
The special fund's support is applicable to be used for the following standards: (1) To projects that have obtained national electronic information industry 
development fund support, give 50% accompanying support. 
(2) The support fund's support quota usuall y does not exceed 30% of the project's 
total financing, and at maximum does not exceed RMB 8 million. 
(3) To common service platform construction and demonstration use projects, the 
special fund usually gives support not exceeding 50% of total investment, and the support fund completely subsidies industry development and policy research projects. G/SCM/Q2/CHN/57 
 
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  (4) To IC design enterprises that utilize our city's IC production line and carry out the 
first round of engineering product tapes adhering to certain requirements, the special fund gives support not exceeding 30% of tape expenditures, and at maximum does not exceed RMB 5 million. 
Given the provisions cited above, please explain why this measure and other related implementing 
measures were not notified pursuant to Article 25 of the Subsidies Agreement.  
30. In Beijing Several Policies on Further Promoting the Software Industry and 
Integrated Circuit Industry Development  (Beijing Municipality People's Government, Jing 
Zheng Fa [2014] No. 6 (8 February 2014)) various support measures are described. These include: 
 
II. IC Industry Policy 
… 
(16) Innovate IC industry investment and financing methods…Expand venture capital 
funding and other financial channels, encourage and attract structure investors, industry capital, and overseas capital to participate and establish IC industry 
development funds, and use equity shares investment and other methods to support 
IC industry to develop in coordination with other links, and promote key enterprise M&As and industry park construction. 
(18) Support high-end IC production project construction. To newly constructed or 
expanded production lines for 12 inches  above with linewidth smaller than 
65 nm…encourage and guide industry development funds, and social capital [should] give equity investment to these products, and city and district (county) governments 
give construction of building or interest discount support. 
Given the provisions cited above, please explain why this measure and other related implementing 
measures were not notified pursuant to Article 25 of the Subsidies Agreement. 
 
Investment and Interest Rate Subsidies  31. There appears to be a general investment system in China funded from the Central Budget 
(See, Interim Measures for the Administration of Central Budget Investment Subsidy and 
Interest Discount Projects , National Development and Reform Commission, Order No. 31 
(8 June 2005); Interim Measures for the Administration of Central Budget Investment 
Subsidy and Interest Discount Projects , National Development and Reform Commission, 
Order No. 3 (15 June 2013).
11  
 
Article 3 of the 2013 measure states: 
Investment subsidies mentioned in these measures refer to investment 
subsidies given to local governments and investment subsidy projects given by the National Development and Reform Commission to qualifying 
enterprises. 
Interest discounts mentioned in these measures refer to loan interest 
subsidies given by the National Development and Reform Commission to 
qualifying investment projects that utilize mid- to long-term bank loans. 
Investment subsidies and investment discounts are gratis investments.  
Article 4 of the 2013 measure lists as one of the focuses of this program as 
"Investment projects for … industrialization of high and new technologies." Article 23 
states that projects that do not have confidentiality requirements "shall be open to the public". 
                                               
11 See also, G/SCM/Q2/CHN/51, 14 October 2104, program #42 and 43. G/SCM/Q2/CHN/57 
 
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  a. Please explain why this program and other related implementing measures have not 
been notified pursuant to Article 25 of the Subsidies Agreement. 
b. Please describe the industries and sectors that have benefitted under these measures. 
c. Article 7 of the 2005 measure placed limits on the amount of the investment subsidy. 
The 2013 measure does not have similar limits described. Are there limits on the amount 
of the investment subsidy under the 2013 measure? If so, please describe.  
32. There also appears to be an investment system for China's state-owned enterprises. 
In 2013, Article 2.1 of the Interpretation on 2013 Cent ral State-owned Capital 
Management Budget  states:  
 
Expenditures for structural adjustment of the state-owned economy 
[account for] 37.988 billion yuan, [which is] used to support strategic 
mergers and reorganizations between central enterprises, sort out equity relations in companies with multiple investor entities, sustain and 
strengthen central enterprises' controlling force on major subsidiaries that 
affect national security and national economy lifelines, as well as resolve the historical legacy problem of central enterprises. 
Article 2.3 of the same 2013 budget document states: 
Expenditures for industrial upgrading and development [account for] 
17.676 billion yuan, [which is] used to enhance central enterprises' indigenous innovation ability, push forward major technology innovation 
and industrialization of scientific and technological achievements, carry 
out the "12th Five-Year" energy saving and emission reduction targets and tasks, support central enterprises' energy saving and emission 
reduction work, and support central enterprises' internal industrial 
integration. … 
For 2014, Article 2.1 of the Interpretation on 2014 Central State-owned Capital 
Management Budget  states: 
 
Expenditures for structural adjustment of the state-owned economy [account for] 61.51 billion yuan, [which is] used to provide key support to 
major structural adjustment mainly in the areas of optimizing industrial 
structure and capital layout, including central enterprises' strategic mergers and reorganizations and equity restructuring. 
Article 2.3 of the same 2014 budget document states: 
 
Expenditures for industrial upgrading and development [account for] 
15.425 billion yuan, [which is] used mainly to support important 
industries involving the lifeline of the national economy and industrial upgrading and development projects in key areas, including breakthroughs in industrial development bottlenecks, breakthroughs in 
technology bottlenecks, integratio n of industry and research, and 
development of new industries. 
Although outside of the relevant reporting period, in 2015, Article 3.4 of the Interpretation on 
2015 Central State-owned Capital Management Budget  states: 
 
State-owned capital injections [account for] 53.6 billion yuan, including: 
26.5 billion yuan expenditures for structural adjustment of the 
state-owned economy, [which is] used to sort out equity relations and support enterprise structural adjustment. 
Moreover, Article 3.5 describes an 8.8 billion yuan subsidy policy for state-owned enterprises.  
 G/SCM/Q2/CHN/57 
 
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  a. Please explain why these programs have not been notified. 
b. What type of subsidy ( e.g., grant, equity infusion) was provided under the subsidy policy 
described in Article 3.5 in 2015? What types of industries have received support under this policy?  
c. What state-owned companies received capital injections and funds for restructuring in 
2009-2014?  
d. Are any of the funds under the above budget items provided under the  Ministry of 
Finance Notice on Issuing the Measure for the Administration of the Central 
State-Owned Capital Management Budge t Key Industries Transformation 
Upgrading and Development Fund , Ministry of Finance, Cai Qi [2013] No. 389 
(29 November 2013)? Please identify any measures relevant to the distribution of funds 
under the budget provisions cited above. What industries benefited from these funds?  
Wild Capture Fisheries 
 
33. The State Council measure titled, Certain Opinions of the State Council Concerning the 
Promotion of the Sustainable and Healthy De velopment of the Marine Fishing Industry  
(Guo Fa [2013] No. 11)
12 includes the following provision: 
 
VII. Strengthening guarantee measures … 
20) Increasing the degree of financial support: Subsidies for fishing populace 
production and occupation transfer and oil price subsidization policies for the fishing 
industry are to be comprehensively consider ed and improved. Research is to be done 
on raising the subsidy standards for production and occupation transfer and on adjusting the method of oil price subsidization so that there is coordination with 
fisheries resources protection and industrial restructuring. Marine salvage policies for 
the fishing industry are to be continued to be implemented. Funding is to be provided 
for supporting fisheries administration, resources survey, variety resources protection, 
disease prevention and control, and quality and safety monitoring. Policies subsidizing 
reproduction and release and aquaculture ecological environment restoration are to be continued to be implemented. The degree of  support for scientific and technological 
innovation and results transformation in areas such as aquatic product breeding, 
disease prevention, resources conservation, and fishing industry equipment is to be 
increased. 
Please explain why this measure and other implementing measures were not notified pursuant to 
Article 25 of the Subsidies Agreement. 
 34. A provincial measure related to the measure cited above titled
 Guangdong Provincial 
People's Government's Opinion on Promot ing the Transformation and Upgrading of 
Marine Fishery to Improve the Level of Marine Fishery Development  (Yue Fu [2013] 
No. 67) includes the following provision: 
 
(XXI) Increase the degree of support. Cont inue to implement the policy of providing 
subsidies for the purchase of fishery machinery and gear, and to incorporate fishing 
industry into the scope of preferential policy of agricultural land, electricity, water, and 
so on. For those distant water fishing enterprises that obtain the "Distant Water 
Fishing Enterprise Qualification Certificate" issued by the Ministry of Agriculture, and 
engaged in distant water fishing busine ss during the validity period, they are 
exempted from paying the corporate income tax. All local governments shall 
incorporate marine fishery into the public financial support system, increase the 
investment amount, and provide priority support. Continue to implement the fishermen switching jobs project, to broaden fishermen's sources of income. Vigorously promote the policy of fishery insurance, timely carry out aquaculture 
insurance policy pilot, in order to improve the fishery risk protection mechanism. 
Provide fishermen with subsidies during the fishing (ban) moratorium. 
                                               
12 See, G/SCM/Q2/CHN/52, #2.2(b). G/SCM/Q2/CHN/57 
 
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  Please explain why this measure and other related implementing measures were not notified 
pursuant to Article 25 of the Subsidies Agreement.  
 
35. A municipality measure, related to the above two measures, titled Notice on the Issuance 
of Shenzhen Municipal Interim Measures for Supporting the Development of Distant 
Ocean Fishing through the Special Fund for Agricultural Development ; Shenzhen Municipal 
Economy, Trade and Information Technology Commission and Shenzhen Municipal Finance 
Commission, (Shenzhen Economy Trade Information Ocean Doc [2014] No. 22) includes the 
following provisions:  
Article III. Enterprises shall be encouraged to organize modern distant ocean fleets: 
(I) Support shall be provided for the building of tuna seiners, ultra-low temperature 
tuna longliners, fiberglass tuna longliners, steel tuna longliners, saury fishing vessels 
and large squid fishing vessels and other distant ocean fishing vessels that are in line 
with the State's aid regulations. Proactive assistance shall be provided to the 
enterprises in their application for state aid. For those vessels for which aid has already been received from the state, suppo rting aid in the amount equivalent to 20% 
of the state aid shall be provided from the special fund, and they shall not be eligible 
for repeat aid from other sources for fishing vessels. 
(II) For large tuna seiners (with fishing qu ota, with total tonnage of 1,500 per vessel 
or more and under 20 years old), large saury fishing vessels and large squid fishing 
vessels (with total tonnage of 1,000 per vessel and under 15 years old), ultra-low 
temperature tuna longliners (with fishing quota, with total tonnage of 350 per vessel or more, and under 15 years old), newly built or purchased used by enterprises, aid in 
an amount equivalent to 25% of the total investment (including investment in the 
vessel purchase and equipment renovation) shall be extended from the special fund, and the maximum aid per vessel shall not exceed respectively 8 million Yuan, 
3 million Yuan and 2 million Yuan. 
(III) Large trawl processing vessels (with total tonnage of 7,000 per vessel and under 
20 years old) newly built or purchased used by enterprises shall be entitled to aid in an amount equivalent to 25% of the total investment (including the investment in the 
vessel purchase and equipment renovation) from the special fund, and the maximum 
amount of aid per vessel shall not exceed respectively 10 million Yuan. 
(IV) Large support vessels for distant ocean fishing (with total tonnage of 2,000 per 
vessel and under 15 years old) and other di stant ocean fishing vessels (with total 
tonnage of 100 per vessel or more and under  10 years old) newly built or purchased 
used by enterprises shall be entitled to aid in an amount equivalent to 10% of the 
total investment (including the investment in the vessel purchase and equipment 
renovation) from the special fund, among which the maximum amount of aid per vessel for large support vessels for distant ocean fishing newly built or purchased used shall not exceed respectively 8 million Yu an and 6 million Yuan, while the maximum 
amount of aid per vessel for large vessels for distant ocean fishing newly built or 
purchased used shall not exceed respectively 500,000 Yuan and 400,000 Yuan. 
(V) For a large vessel for distant ocean fishing newly built or purchased used by an 
enterprise, after the three certificates, namely Nationality Certificate for a Chinese 
Fishing Vessel, Certificate of Ownership and the Vessel Inspection Certificate are obtained, the ratio between the annual amount of maritime product capture from 
distant ocean transported back to our m unicipality and the annual capacity of the 
enterprise's fishing vessel must reach the following number: For tuna, the quantity shipped back shall not be less than 10% and not less than 60% for other fish types for the above vessel to be eligible for aid. The monetary aid (including the State aid for 
shipping) shall be paid out in the ratio of 20%, 20%, 20%, 20%, and 20% 
respectively over a five-year period. If the amount shipped back falls below the above requirement, vessel aid for the subsequent period shall be terminated. 
Please explain why this measure and other related implementing measures were not notified 
pursuant to Article 25 of the Subsidies Agreement. Why were the measures cited China's last trade G/SCM/Q2/CHN/57 
 
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  policy review report and in the United States' Article 25.8 request13 not included in China's latest 
notification?  36. China has never notified a wild capture fisheries subsidies program at either the central or 
sub-central level. Is it China's position that it has never provided a specific subsidy to the wild 
capture fisheries industry since becoming a WTO Member?  
Textiles 
 37. The Shanghai Municipality Plan to Carry Out the Implementation of the Textile 
Industry Adjustment and Revitalization Plan  (Hu Fu Fa [2009] No.53)
14 categorizes the textile 
industry to be a "traditional pillar" industry. The entire plan, which includes guiding principles and 
policies, appears to be specific to the textile industry and describes particular financial benefits that will be provided to the industry. For example: 
 
"Strengthen the supportive efforts of special funds for the independent name brand enterprises of Shanghai that are to be used for light industry and the textile industry. 
On the basis of relevant regulations, focus on giving rewards to those enterprises that 
have earned the title of national bran d (Chinese world brands, Chinese brands, 
Famous Trademarks of China, and brands that are the most competitive in the market). Give funds to help improve the quality of well-known name brand enterprises 
and promote excellent performance and engage  in other brand projects. Give funds to 
"old and famous" Chinese enterprises… ." 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 38. The Notice on Issuing the Anhui Province  Textile Industry Adjustment and 
Revitalization Plan (Wan Zheng [2009] No. 55)
15, which includes guiding principles and policies, 
appears to be specific to the textile industry and describes particular financial benefits that will be provided to the industry. For example:  
"Increase textile and clothing export suppo rt. The export credit insurance premium 
subsidy budgeted for by the provincial government; export stock and incremental incentives and corporate policies such as international market development funds; 
give priority to supporting textile and garment enterprises. At the same time, 
encourage qualified textile enterprises to "step out", and actively strive to achieve the optimal configuration of sales, research and development and all aspects of production 
on a global scale. Encourage foreign trade enterprises to export provincial textile 
products." 
Given the language of the cited measure, plea se explain why this measure and other related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 
39. The Notice of the People's Government of  Shandong Province on Printing and 
Distributing the Shandong Province Textile  Industry Adjustment Revitalization Plan  
(Lu Zheng Fa [2009] No. 48)
16 categorizes the textile industry to be a "pillar" industry. The entire 
plan, which includes guiding principles and policies,  appears to be specific to the textile industry 
and describes particular financial benefits that will be provided to the industry. For example: 
 
"Policy Support is increasing based on the nationwide implementation of the policy of driving internal demand. The State Council issued the Textile Industry Adjustment and Revitalization Plan, giving greater fiscal, ta x and financial support. ... credit support is 
given to enterprises which have good fundamentals but are troubled with operational 
and financial difficulties temporarily; greater help is given to small- and medium-sized textile enterprises and guarantee institutions are encouraged to provide credit 
guarantee and financing service to ease burdens on textile enterprises. In addition ... 
                                               
13 G/SCM/Q2/CHN/52. 
14 G/SCM/Q2/CHN/51, 21 October 2014; See program # 20. 
15 G/SCM/Q2/CHN/51, 21 October 2014; See program # 21. 
16 G/SCM/Q2/CHN/51, 21 October 2014; See program # 22. G/SCM/Q2/CHN/57 
 
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  technical transformation interest subsidy policies have been issued to provide policy 
support to industry transformation and upgrading." 
"Give Greater Support Concerning Fiscal and Taxation Policies. First, take concrete 
measures to carry out preferential fiscal and taxation policies. Exert greater efforts in 
policy publicity and implementation, actively guide enterprises to make good and full 
use of preferential fiscal and taxation policies, and strengthen supervision and 
inspection over policy execution, so that th e preferential policies will be employed 
fully, properly and flexibly. At the same time, fiscal and taxation departments at all 
levels shall fully play their role, actively studying and formulating supporting fiscal and taxation policies and tax administration measures to boost industry adjustment and revitalization. Second, actively integrate special fiscal funds …"  
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 
40. The Notice of the People's Government of Henan Province on Printing and 
Distributing the Henan Province Textile Industry Adjustment Revitalization Plan  
(Yu Zheng [2009] No. 75)
17 categorizes the textile industry to be a "strategic pillar" industry. The 
entire plan, which includes guiding principles and policies, appears to be specific to the textile 
industry and describes particular financial benefits that will be provided to the industry. For example:  
"Give Greater Fiscal and Taxation Support ... comprehensively use special provincial 
fiscal funds to support structure adjustment, technical transformation and energy conservation and emission reduction projects of textile enterprises." 
"… support policies intended to grant incentives to enterprises by making use of local 
retained part of the VAT and income ta x revenues imposed on newly established 
textile and garment enterprises in industrial cluster areas." 
"… attach importance to the construction of about 30 specialized textile and garment 
parks, and give greater support in terms of land, fiscal and tax policy, financing and environmental protection to improve industry transfer accommodating capability. Support specialized textile and garment parks in their efforts to establish public 
service platforms with respect to product test, R&D, logistics and employee training to 
promote cluster-style industry transfer. The special investment promotion fund of the Province will grant reward to major textile industry transfer projects." 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 
41. The Guangdong Province Textile Industry  Adjustment and Revitalization Plan  
(Yue Fu [2009] No. 164 
18 categorizes the textile industry to be a "traditional competitive" 
industry. The entire plan, which includes guiding pr inciples and policies, appears to be specific to 
the textile industry and describes particular financial benefits that will be provided to the industry. 
For example: 
 
"(II) Give Greater Credit Support to Textile  Enterprises. Properly implement relevant 
policies issued by the State and give greater support to textile enterprises regarding 
working capital for production and operation purpose. ... expand direct-financing channels for them, encourage financial institutions to develop innovative credit 
products, improve the SME guarantee system, and give priority support to small and 
medium-sized textile enterprises that meet industry policies and that have markets, technologies and development prospects." 
"(III) Give Greater Financial Support to Textile Industry Structure Adjustment. Make 
good use of all special funds in an overall view to support energy conservation and 
                                               
17 G/SCM/Q2/CHN/51 21 October 2014; See program # 23. 
18 G/SCM/Q2/CHN/51 21 October 2014; See program # 24. G/SCM/Q2/CHN/57 
 
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  emission reduction, public service platform, technical innovation, technical 
transformation and brand construction of the textile industry…" 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 
42. The Document of the Jiangsu Provincial People's Government (Su Zheng Fa [2009] No. 84) Notice of the Provincial Government on Prin ting and Issuing the Jiangsu Province Textile 
Industry Adjustment and Revitalization Plan Outline
19 categorizes the textile industry as a 
"conventional pillar" industry. The entire measure, which includes guiding principles and policies, appears to be specific to the textile industry and describes particular financial benefits that will be provided to the industry. For example: 
 
"(I) Strengthen credit support. Carry out st ate credit policies for the textile industry, 
encourage financial institutions to strengthen their credit support for textile 
enterprises, and grant support for circulating funds for enterprises with a good basic 
situation but with temporary financial difficulties. Grant more sufficient credit support for fixed assets to important technical upgrade projects that conform to industrial 
policy. Encourage guarantee authorities to provide credit guarantees and financing 
service for textile enterprises." 
"(II) Carry out a brand strategy. Formulate relevant policies for supporting and 
protecting brands, support advantageous enterprises to establish R&D centers, and 
vigorously promote construction of independent brands. Make full use of various 
national and provincial dedicated funds supporting the development of foreign and 
economic trade, support the export of indigenous-brand textiles…"  
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 
Renewable Energy 
 43. The Renewable Energy Law, adopted by the 14th Session of the Standing 
Committee of the 10th Nati onal People's Congress
20 appears to target the development and 
utilization of renewable energy for energy deve lopment. The law is specific to the renewable 
energy which includes non-fossil energy of wind , solar, water, biomass, geothermal and ocean 
energies and describes particular financial benefi ts that will be provided to the industry. For 
example: 
 
 "[Article 24] The state finance shall set up an exclusive fund for the development of 
renewable energy to support the following activities…" 
 "[Article 25] As for the projects of development and utilization of renewable 
energy…the financial institutions may provide preferential loans with financial interest payments." 
 "[Article 26] The State shall give preferential taxation to projects listed into the 
catalogue of guidance for industrial deve lopment of renewable energy. The specific 
measures thereof shall be enacted by the State Council." 
Given the language of the cited measure, please explain why this measure and implementing 
programs were not notified pursuant to Article 25 of the Subsidies Agreement.  
44. The Auto Industry Adjustment and Revitalization Plan
21 appears to be specific to the 
automobile industry and describes particular financia l benefits that will be provided to the industry. 
For example:  
                                               
19 G/SCM/Q2/CHN/51 21 October 2014; See program # 25. 
20 G/SCM/Q2/CHN/42 11 October 2011; See program # 1. 
21 G/SCM/Q2/CHN/42 11 October 2011; See program # 25 page 4. G/SCM/Q2/CHN/57 
 
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   "Intensify investment in technology advancement and transformation. In the next three 
years, arrange RMB 10 billion in the newly added central budget to be used as technology advancement and transformation special fund, to provide key support for auto manufacturing enterprises to upgrade products… "  
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 
45. The Interim Measures for Administering the Special Fund of the Renewable Energy 
Development in Yunnan Province [No. 237]
22 appears to be specific to the renewable energy 
industry and describes particular financial benefits that will be provided to the industry. For example: 
 
 "Article 2 Yunnan Province Special Fund of Renewable Energy Development" (hereinafter 
"the Special Fund") referred to in this do cument means the special fund arranged by 
provincial fiscal budget, and specifically us ed to support the development of renewable 
energy." 
 "Article 7 The Special Fund provides support in the forms of free grant and loan interest 
subsidies." 
 "Article 8 Science and technology research, standard formulation, and renewable energy 
resources exploration, evaluation and relevant information system construction for renewable energy key technology transformation  projects that are listed in national and 
provincial top research projects, shall usually receive appropriate support in the form of 
free grant." 
 "Article 9 Renewable energy development an d utilization projects or demonstrative 
projects that are listed in national renewable energy industry development guidance 
catalogue and meet the credit terms, shall usually receive appropriate support in the 
form of loan interest subsidies." 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 High and New Technology Zones 
 
46. The Tianjin Economic-Technological Developm ent Zone Provision on Promoting the 
Development of High and New Technology Sectors
23 appears to be specific to the high and 
new technology industries located in a designated area and describes particular financial benefits 
that will be provided to the industry. For example:  
 "[Special Fund] The Administrative Commission allocates 5% of the disposable fiscal 
revenue each year to set up the Tianjin Economic Technological Development Area (TEDA) Scientific and Technological Development Fund. Supporting policies, funds, and awards….." 
 "[Rent Subsidies]….production houses rented by high and new technology enterprises at 
the initial stage in the Development Zone… we shall give them up to three years rent subsidy, and the total amount of the subsidy is not to exceed a million yuan." 
 "[Special Fund for Software and Integrated Circuit Design Industries] Every year, set up 
a special fund of 5 million yuan for the software industry to support the building of public service platforms of software technology an d the development of the software industry; 
every year, set up a special fund of 10 million yuan for the IC design industry is to give 
priority support to the building of IC design public service platforms and the 
development of the IC design industry." 
                                               
22 G/SCM/Q2/CHN/42 11 October 2011; See program # 30 page 4. 
23 G/SCM/Q2/CHN/51 21 October 2014; See program # 99. G/SCM/Q2/CHN/57 
 
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   "[Credit Guarantee] The Development Zone is to set up a special fund of 20 million yuan 
for special risks in credit guarantees to provide services such as circulating funds, financing, and guarantees to small-and medium-size high and new technology enterprises through the TEDA small enterprise credit guarantee center." 
 "[Loan Discounts]For scientific and technological industrialization projects of start-up 
type for high and new technology enterprises, [we]encourage and support interest subsidizing and bank loans to expand their production scale. [We shall] give enterprises 
subsidies in line with the annual interest of the loan that is calculated in accordance with 
the benchmark interest rate. The longest interest subsidy term is three years, and the upper limit of the total amount of the in terest subsidy is three million yuan." 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 47. The Notice of People's Government of Beijin g Municipality on Printing and Issuing 
the Several Provisions on Further Promot ing High and New Technology Industry 
Development No. 38
24 appears to be specific to the high and new technology industry and 
describes particular financial benefits that will be provided to the particular industry. For example: 
 
 "II. The municipal government establishes a special fund for encouraging the 
development of new and high-tech industries." 
 "The municipal government sets up technolo gical innovation funds for supporting the 
transformation of new and high-tech achievement. The investment institutions that are 
established and guided with funding from departments including the Municipal Finance Bureau, Municipal Science and Technology Commission, Municipal Planning Commission, 
and Administrative Committee of the Zhongguancun Science and Technology Park, and 
the government raises funds through multiple channels. These investment institutions promote the transformation of new and high-tech achievements by way of market 
research input, project development, venture investments, loans with discounted 
interest, and loan guarantees." 
 "The municipal government sets up special funds for the development of the 
Zhongguancun Science and Technology Park, with an emphasis on supporting the 
construction of infrastructure within the park as well as the transformation of new and 
high-tech achievements."  
 "The Municipal Economic Commission and the Municipal Science and Technology 
Commission are to allocate no less than 50% of the technological transformation funds, 
restructuring funds, and science and technology funds annually to support new and high-tech achievements, transformation projec ts, and joint implementation projects for 
industry, education and research by way of interest subsidy, capital fund injections, and 
... research and development subsidy." 
Given the language of the cited measure, please explain why this measure and related 
implementing measures were not notified pursua nt to Article 25 of the Subsidies Agreement. 
 
__________  
                                               
24 G/SCM/Q2/CHN/51 21 October 2014; See program # 103.