G/SCM/Q2/CHN/73  
 
30 October 2017  
(17-5882) Page: 1/18 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES  
REPLIES TO QUESTIONS F ROM THE UNITED STATE S1 REGARDING  
THE SUB-CENTRAL NEW AND FULL NOTIFIC ATION OF CHINA2 
The following communication, dated 24 October  2017, is being ci rculated at the request of the 
Delegation of  China . 
 
_______________  
 
 
Gener al Questions  
 
1. We understand that there are 32 provincial -level administrative units in China 
(excluding Hong Kong and Macau) in China, yet the notification appears to include 
subsidy programs from only 20 of these entities. When will China provide a sub sidy 
notification for the remaining entities?  
 
Reply  
 
China will endeavor to realize gradually the full coverage of administrative areas at the provincial 
level in its future subsidy notifications.  
 
2. How does China decide if a program is a central govern ment program or a sub -
central government program for purposes of its subsidy notification? The Famous Export 
Brand, for example, was pursuant to a central government measure but was not 
included in the central government notification but was included in th e sub -central 
notification. Is the determining factor the level of government that funds the program? 
What if the program is jointly funded by more than one level of government?  
 
Reply  
 
Sub-central subsidy is not clearly defined in the WTO  SCM Agreement , and Members do not have 
exactly the same understanding about it. China believes that there are two types of sub -central 
subsidy programs: one of them is formulated by sub -central governments on their own and are 
completely covered by local finance alone; th e other of them are  jointly covered by central and 
local finance.  
 
3. Why was the Strategic Emerging Industries (SEI) program included in the central 
government notification but not at the sub -central level, despite numerous programs at 
the sub -central lev el that appear to be at least partially funded at the sub -central level 
(see, for example, Shanghai Municipality Measure on the Administration of the Strategic 
Emerging Industries Development Special Fund , Shanghai Municipal Development and 
Reform Commissi on, Shanghai Municipal Department of Finance, Hu Fu Fa [2012] 
No. 72, 4 Augu st 2012, included in the United  States' third counter -notification on 
China's SEI program: G/SCM/Q2/CHN/53, 19 October 2015) . 
 
                                                
1 G/SCM/Q2/CHN/69.  
2 G/SCM/N/95/CHN/Suppl.1 -G/SCM/N/123/CHN/Suppl.1 -G/SCM/N/155/CHN/Suppl.1 -
G/SCM/N/186/CHN/Suppl.1 -G/SCM/N/220/CHN/Suppl.1 -G/SCM/N/253/CHN/Suppl.1 -
G/SCM/N/28 4/CHN/Suppl.1; 29 July 2016 . G/SCM/Q2/CHN/73  
 
- 2 - 
 
  Reply  
 
Program 81 "Special fund for the development o f strategic emerging industry " of the third central 
government notification provided by China is a central -level subsidy. The funds provided by 
Shanghai Municipality indicated in the question cannot be verified at present.  
 
4. Numerous "Incentive Fund for Famous -Brand Products" (linked to the Famous 
Export Brands/World Top Brand programs) measures were included in the notification. 
We are aware that certain central government measures were implemented to establish 
the Famous Export Brand program (see, e.g., Guiding Opinion on Supporting 
Development of Brand Exports ; Shang Mao Fa [2005] No. 124). These measures were 
included in the dispute brought by the United States in 2008 (see, China – Grants, Loans 
and Other Incentives , DS-387; focusing on the Famous Exp ort Brand and World Top 
Brand programs)  Please explain why the central government measures that established 
the Famous Export Brand Program and World Top Brand programs have not been 
notified.  
 
Reply  
 
The relevant measures formulated by the central governm ent are guiding opinions which do not 
involve specific subsidy policies.  
 
5. Why were the measures listed below, which relate to the "Famous Export Brand" 
or "World Top Brand" programs, not included in the notification? These measures were 
part of the disp ute brought by the United States in 2008 ( China – Grants, Loans and 
Other Incentives , DS-387) and were included in the first counter notification of the 
United States (see, G/SCM/Q2/CHN/42, 21 October 2011) but did not appear in China's 
sub-central notific ation (a lthough other Famous Export Brand and World Top Brand 
programs were included).  
 
 Several Related Policies on Implementation of Guiyang's Science and Technology 
Development Planning During the "Eleventh Five -Year Plan" (2006 -2010), ZFF [2006] 
No. 51.  (G/SCM/Q2/CHN/42, Measure #12)  
Reply  
 
Please refer to China 's statement made at the autumn regular meeting of the SCM Committee held 
in October 2015. Upon verification, this policy has become invalid. This policy is of guiding nature 
and does not involve specific subsidy policies.  
 
 Circular of Jinjiang Municipal People's Government on Adjusting and Enriching the 
Incentive Policy for Creating a City of Brand, JZW [2007] No. 93. (Measure #14)  
Reply  
 
Upon verification, this document became invalid as of 31  December 2008. Due to lack of eligible 
enterprises,  no subsidy has ever been granted based on this policy.  
 
 Opinions on Promoting Fast and Healthy Development of Characteristic 
Manufacturing Industry through Implementing Ind ustrial Upgrading Projects, 
QWF  [2007] No. 20. (Measure #17)  
Reply  
 
Upon verification, this policy became invalid as of June 1 2009, and no funds were appropriated 
during its implementation periods . 
 
 Circular on Forwarding the Policy Measures for Pushing on the Strategy of Drive 
with Top Brands, SFB [2006] No. 115. (Measure #20)  G/SCM/Q2/CHN/73  
 
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  Reply  
 
Upon verification, this document was annulled in 2009, and no subsidy has been provided to any 
enterprise according to this document.  
 
 Notice Issued by the Office of Wenzhou Municipal Government for the Dist ribution 
of Quality & Branding Award Management Measures in Wenzhou, WZB [2006] No. 147. 
(Measure #21)  
Reply  
 
This policy has been notified by China. Please refer to Program 99 of the sub -central subsidy 
notification submitted by China.  
 
 Opinions of Wuyi C ounty Party Committee and People's Government on Further 
Encouraging and Promoting the Development of SMEs. (Measure #22)  
Reply  
 
This policy has been notified by China. Please refer to Program 85 of the sub -central subsidy 
notification submitted by China.  
 
 Suggestions on Accelerating the Implementation of Brand Strategy, ZZF [2007] 
No. 81. (Measure #25)  
Reply  
 
This policy has been notified by China. Please refer to Program 51 of the sub -central subsidy 
notification submitted by China.  
 
 Circular on Ensuring Proper Use and Management of Guangdong Brand 
Development Fund, YCF [2007] No. 64. (Measure #26)  
Reply  
 
The above policies cannot be verified at present .  
 
 Circular of the General Office of the State Bureau of Quality Supervision, 
Inspection and Quarantine for Issuing the "Measures for the Control of Evaluation of 
Chinese Famous -Brand Products (for Trial Implementation)," Guozhijian [2001] No. 32. 
(Measure #27)  
Reply  
 
The sub -central subsidy notification only covers subsidy policies at sub -central government  level.  
 
 Circular of Changxing County People's Government on Further Promoting Foreign 
Trade Development, CZF [2005] No. 45. (Measure #28)  
Reply  
 
This policy has been notified by China. Please refer to Program 79 of the sub -central subsidy 
notification sub mitted by China.  
 
 Circular on Printing and Distributing the Policy Opinions for Accelerating 
Innovative Development of Industrial Economy, CZF [2007] No. 54. (Measure #30)  
Reply  
 
This policy has been notified by China. Please refer to Program 87 of the sub -central subsidy 
notification submitted by China.  G/SCM/Q2/CHN/73  
 
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   Circular on Printing and Distributing the "Provisional Regulation on the Use of 
Fujian Export Brand Development Fund," MCW [2007] No. 17. (Measure #31)  
Reply  
 
The above policy cannot be verified at present.  
 
 Circular of the Foreign Trade and Economic Cooperation Department of Fujian 
Province on Recommending Candidate Enterprise for the 2008 -2009 "Famous Export 
Brands the Foreign Trade and Economic Cooperation Department of Fujian Province 
Mainly Cultivates a nd Develops, MWJMF [2008] No. 31. (Measure #32)  
Reply  
 
Upon verification, this document involves the recommendation of enterprises rather than granting 
subsidies and was annulled as of 2009.  
 
 Circular on Printing and Distributing the Opinions on Recognizin g "Famous Export 
Brands the Foreign Trade and Economic Cooperation Department of Guangdong Province 
Mainly Cultivates and Develops," YWJMJZ [2007] No. 1. (Measure #33)  
Reply  
 
Please refer to China 's statement made at the autumn regular meeting of the SCM C ommittee held 
in October 2015. Upon verification, this policy became invalid as of 2009. It was a procedural 
document or only involving evaluation standards, and could not constitute a subsidy policy alone.  
 
 Suggestions on the "Export Brands Particularly C ultivated and Developed by the 
Department of Foreign Trade and Economic Cooperation Department of Guangdong 
Province" (Revised Edition). (Measure #34)  
Reply  
 
Please refer to China 's statement made at the autumn regular meeting of the SCM Committee held 
in October 2015. Upon verification, this policy became invalid as of 2009. It was a procedural 
document or only involved evaluation standards, and could not constitute a subsidy policy alone.  
 
 Notices Concerning Alternative Name List Supplementary to the Expo rt Brands 
Particularly Cultivated and Developed by the Department of Foreign Trade and Economic 
Cooperation of Guangdong Province, YWJMJH [2008] 31. (Measure #35)  
Reply  
 
Please refer to China 's statement made at the autumn regular meeting of the SCM Commit tee held 
in October 2015. Upon verification, this policy became invalid as of 2009. It was a procedural 
document or only involved evaluation standards, and could not constitute a subsidy policy alone.  
 
 Notice Regarding Support Policies to Promote the Devel opment of Our City's 
Foreign Trade and Economic Cooperation for 2005, Hang  Wai Jing Mao Ji Cai [2005] 
No. 225, Hang Cai Qi Er [2005] No. 602. (Measure #36)  
Reply  
 
This policy has been notified by China. Please refer to Program 76 (1) of the sub -central sub sidy 
notification submitted by China.  
 
 Directives of the Administrative Office of the Hangzhou Municipal People's 
Government on Promoting the Development of Independent Export Brands, Hang Zheng 
Ban [2007] No. 10. (Measure #38)  G/SCM/Q2/CHN/73  
 
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  Reply  
 
The above policy cann ot be verified at present.  
 
 Circular of the Provincial Department of Commerce, Development and Reform 
Commission, Economic Commission, Department of Finance, Department of Science and 
Technology, Bureau of State Tax, Administration for Industry and Commerc e, Bureau of 
Quality and Technical Supervision, and Entry -Exit Inspection and Quarantine Bureau of 
Heilongjiang Province and Harbin Customs on Printing and Distributing the "Guiding 
Opinions of Heilongjiang Province on Supporting the Development of Famous Export 
Brands, Hei Shang Lian Fa [2006] No. 1. (Measure #39)  
Reply  
 
This policy has been notified by China. Please refer to Program 42 of the sub -central subsidy 
notification submitted by China.  
 
 Circular on Printing and Distributing the Newly Revised "Met hod for Selection of 
Henan Famous Export Brands," Yu Shang Mao [2008] No. 1. (Measure #40)  
Reply  
 
Please refer to Program 37 of the sub -central subsidy notification submitted by China.  
 
 Opinion on Promoting Better and Quicker Development of Private Econom y, 
JZF [2007] No.  113. (Measure #43)  
Reply  
 
Please refer to the statement of China at the autumn regular meeting of the SCM Committee held 
in October 2015. This policy is of guiding nature which does not involve specific subsidy policies.  
 
 Opinions of Jindo ng District Party Committee and People's Government of Jinhua 
City on Accelerating Industrial and Export -Oriented  Economic Development. 
(Measure  #44)  
Reply  
 
This policy has been notified by China. Please refer to Program 83 of the sub -central subsidy 
notification submitted by China.  
 
 Notice of the Department of Commerce and Department of Finance of Ningxia Hui 
Autonomous Region on Printing and Issuing the Administrative Measures of Ningxia Hui 
Autonomous Region for the Awarding and Promoting of Brand Export  Commodities, Ning 
Shang (Gui Cai) FA [2006] No. 159. (Measure #45)  
Reply  
 
Please refer to the statement of China at the autumn regular meeting of the SCM Committee held 
in October 2015. Upon verification, no subsidy has been provided according to this pol icy. 
 
 Notice on Printing and Distribution of 2006 Policies for Encouraging the 
Development of Foreign Trade & Economic Cooperation in Shandong, LCQ [2006] No. 5. 
(Measure #47)  
Reply  
 
This policy has been notified by China. Please see Program 60 (4) of the sub-central subsidy 
notification submitted by China.  
 G/SCM/Q2/CHN/73  
 
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   Circular on Forwarding the Opinions of Foreign Trade Office of Tianjin Municipal 
Government on Accelerating Development of Proprietary Export Brands of Tianjin City, 
JZF [2007] No. 005. (Measure #49)  
Reply 
 
This policy has been notified by China. Please see Program 60 (4) of the sub -central subsidy 
notification submitted by China.  
 
 Measures for Managing Xiamen's Key Export Enterprise Assistance Fund, Xia Fu 
Ban [2006] No. 117. (Measure #51)  
Reply  
 
This p olicy has been notified by China. Please see Program 15 (1) of the sub -central subsidy 
notification submitted by China.  
 
 Notice from the Xiamen Trade Development Bureau and the Xiamen Finance 
Bureau on the publishing of Measures for Managing Xiamen's Key E xport Enterprise 
Assistance Fund Implementation Plan, Gui Cai [2006] No. 268. (Measure #52)  
Reply  
 
This policy has been notified by China. Please see Program 15 (1) of the sub -central subsidy 
notification submitted by China.  
 
 Notice Concerning Relevant Pol icies on Promotion of Foreign Trade & Economic 
Development in 2005, ZCQZ [2005] No. 145. (Measure #55)  
Reply  
 
This policy has been notified by China. Please see Program 15 (1) of the sub -central subsidy 
notification submitted by China.  
 
 Opinions on Acceler ating Open Economy of Organizations Directly Under Municipal 
Government, LZF [2004] No. 38. (Measure #56)  
Reply  
 
This policy has been notified by China. Please see Program 15 (1) of the sub -central subsidy 
notification submitted by China.  
 
 Circular on Prin ting and Distributing the Interim Measures of Yangzhou City for 
Administration of the Incentive Fund for Famous -brand Export Products, YCQ [2007] 
No. 23; YWJMM [2007] No. 008. (Measure #57)  
Reply  
 
This policy has been notified by China. Please see Program 50 of the sub -central subsidy 
notification submitted by China.  
 
 Implementing Rules of Support Policies for Patented Brands of Service Outsourcing 
Companies by Zhabei District, Economic Commission of Zhabei District, Shanghai 
(June  2007). (Measure #58)  
Reply 
 
Please see China 's statement made at the autumn regular meeting of the SCM Committee held in 
October 2015. Upon verification, this policy is not a subsidy subject to the SCM Agreement.  
 G/SCM/Q2/CHN/73  
 
- 7 - 
 
   Measures for the Administration of Famous -brand (Industrial) Produc ts of 
Guangdong Province. (Measure #60)  
Reply  
 
Please see China 's statement made at the autumn regular meeting of the SCM Committee held in 
October 2015. Upon verification, this document only involves evaluation standards, and cannot 
constitute a subsidy p olicy alone.  
 
 Measures for the Administration of Famous -Brand (Agricultural) Products of 
Guangdong Province. (Measure #61)  
Reply  
 
Please see China 's statement made at the autumn regular meeting of the SCM Committee held in 
October 2015. Upon verification, this document only involves evaluation standards, and cannot 
constitute a subsidy policy alone.  
 
 Circular of Nanchang Municipal People's Government on Printing and Distributing 
the Interim Measures for Administration of Nanchang Foreign Trade Development F und, 
Hong Fu Fa [2007] No. 31. (Measure #62)  
Reply  
 
This policy has been notified by China. Please see Program 53 of the sub -central subsidy 
notification submitted by China.  
 
 Trial Opinions of Jiangdong District, Ningbo City on Promoting Steady Foreign 
Trade Development, DZF [2004] No. 13. (Measure #63)  
Reply  
 
Please see China 's statement made at the autumn regular meeting of the SCM Committee held in 
October 2015. Upon verification, this policy is a guidance document which does not involve specific 
subsidy  policies.  
 
 Opinions of Jiangdong District, Ningbo City on Promoting Steady Foreign Trade 
Development, Dong Zheng Fa [2005] No. 25. (Measure #64)  
Reply  
 
Please see China 's statement made at the autumn regular meeting of the SCM Committee held in 
October 20 15. Upon verification, this policy is a guidance document which does not involve specific 
subsidy policies.  
 
 2005 Policies for Encouraging the Development of Foreign Trade & Economic 
Cooperation in Shandong. (Measure #65)  
Reply  
 
This policy has been notifi ed by China. Please see Program 60 (3) of the sub -central subsidy 
notification submitted by China.  
 
 Notice on Printing and Distribution of 2003 Policies for Encouraging and Expanding 
Foreign Trade Export to Shandong, LWJMJCZ [2003] No. 180. (Measure #66)  
Reply 
 
This policy has been notified by China. Please see Program 60 (1) of the sub -central subsidy 
notification submitted by China.  G/SCM/Q2/CHN/73  
 
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   2004 Policies for Encouraging the Development of Foreign Trade & Economic 
Cooperation in Shandong, LWJMJCZ [2003] No. 1037. (Measure #67)  
Reply  
 
This policy has been notified by China. Please see Program 60 (3) of the sub -central subsidy 
notification submitted by China. The reference number should be LWJMJCZ ［2004］ No. 1037.  
 
 Opinions on Further Accelerating the Development of Open Economy, XZF [2007] 
No. 1. (Measure #68)  
Reply  
 
This policy has been notified by China. Please see Program 88 of the sub -central subsidy 
notification submitted by China.  
 
 Notice on Recommending of Alternative Name List for 2005 -2006 "Export Brand 
Merc handise in Shanghai," HJMMC [2005] No. 143. (Measure #69)  
Reply  
 
Please see China 's statement made at the autumn regular meeting of the SCM Committee held in 
October 2015. Upon verification, this document only involves evaluation standards, and cannot 
constitute a subsidy policy alone.  
 
 Notice of Shanghai Municipal Commission of Foreign Trade and Economic 
Cooperation for Carrying out Confirmation of 2007 -2008 "Export Brands in Shanghai. 
(Measure #70)  
Reply  
 
Please see China 's statement made at the autumn re gular meeting of the SCM Committee held in 
October 2015. Upon verification, this document only involves evaluation standards, and cannot 
constitute a subsidy policy alone.  
 
 Measures on Promoting the Development of the City Open Economy in 2006.  
(Measure  #71) 
Reply  
 
This policy has been notified by China. Please see Program 86 of the sub -central subsidy 
notification submitted by China.  
 
 Notice of the Municipal Bureau of Foreign Trade and Economic Cooperation and 
Bureau of Finance Regarding The Interim Metho ds For The Use And Management Of 
Export Support Fund Forwarded By The Office Of The Municipal Government, Ning Zheng 
Fa Ban [2005] No. 93. (Measure #72)  
Reply  
 
This policy has been notified by China. Please see Program 46 of the sub -central subsidy 
notific ation submitted by China.  
 
 Implementation Opinion Regarding Support By Our Province On the Development 
Of Export Brands, Shaan Shang Fa [2007] No. 120. (Measure #74)  
Reply  
 
Please see China 's statement made at the autumn regular meeting of the SCM Committ ee held in 
October 2015. Upon verification, no subsidy was provided to any enterprise based on this 
document.  G/SCM/Q2/CHN/73  
 
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   The People's Government of Zhengzhou Suggestions on Several Policies to 
Promote the Development of Foreign Trade and Economy, ZZW [2007] No. 90. 
(Measure  #75)  
Reply  
 
This policy has been notified by China. Please see Program 40 (1) of the sub -central subsidy 
notification submitted by China.  
 
 Several Policies on Enhancement of Self -Innovation Ability to Construct the 
Innovation -Oriented Cities, SF [2 006] No.74. (Measure #76)  
Reply  
 
This policy has been notified by China. Please see Program 47 (3) of the sub -central subsidy 
notification submitted by China.  
 
 Suggestions on Several Policies of Jiaxing People's Government to Further 
Strengthen Self -innova tion Ability, JZF [2006] No. 53. (Measure #77)  
Reply  
 
This policy has been notified by China. Please see Program 82 of the sub -central subsidy 
notification submitted by China.  
 
 Suggestions on the Implementation of Famous Brand Strategy during the 
"Eleventh  Five-year Plan," issued by the People's Gov ernment of Jilin Province, 
JSZF  (2006) No. 21. (Measure #78)  
Reply  
 
Please see China 's statement made at the autumn regular meeting of the SCM Committee held in 
October 2015. This policy is a guidance document wh ich does not involve specific subsidy policies.  
 
 Liaoning Provincial People's Government Proposals on Promoting Development of 
Private Economy, Liao Zheng Fa (2006) No. 13. (Measure #79)  
Reply  
 
Please see China 's statement made at the autumn regular meetin g of the SCM Committee held in 
October 2015. This policy is a guidance document which does not involve specific subsidy policies.  
 
 Regulations for Promoting the Development of Small and Medium -Sized 
Enterprises in Liaoning (27 September 2008). (Measure #80 ) 
Reply  
 
Please see China 's statement made at the autumn regular meeting of the SCM Committee held in 
October 2015. This policy is a guidance document which does not involve specific subsidy policies.  
 
 Several Opinions of Suzhou Municipal People's Governme nt on Implementation of 
Famous Brand Strategy, SF [2003] No. 172. (Measure #81)  
Reply  
 
This policy has been notified by China. Please see Program 47 (1) of the sub -central subsidy 
notification submitted by China.  
 
 Notice of Shanghai Municipal Government o n Some Proposals on the Promotion of 
Development of Shanghai's Service Subcontracting (10 August 2006), Hu Fu Fa (2006) 
No. 26. (Measure #82)  G/SCM/Q2/CHN/73  
 
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  Reply  
 
Please see China 's statement made at the autumn regular meeting of the SCM Committee held in 
October 2015. Upon verification, this policy is not a subsidy subject to the SCM Agreement.  
 
 Notice of Ten Authorities on the Printing and Distribution of "Proposals on 
Supporting Development of Famous Export Brands" E Shang Wai [2006] No. 2. (Measure 
#83)  
Reply  
 
Upon v erification, this policy was annulled as of 2009.  
 
 Proposals on Promoting the Development of Tianjin's Foreign Trade in a Sound and 
Fast Manner, Jin Zheng Fa [2008] No. 65. (Measure #84)  
Reply  
 
Please see China 's statement made at the autumn regular meetin g of the SCM Committee held in 
October 2015. Upon verification, this policy is a guidance document which does not involve specific 
subsidy policies.  
 
 Notice of Administration Office of Wenzhou Municipal People's Government on the 
Printing and Distribution of Rules on the Management o f Quality and Brand Rewards 
(17 August 2006), Wen Zheng Ban [2006] No. 147. (Measure #86)  
Reply  
 
This policy has been notified by China. Please see Program 99 of the sub -central subsidy 
notification submitted by China.  
 
 Notice R egarding Evaluation Work of Export Name Brands Subject to Priority 
Cultivation And Development by Shandong Province for 2008 – 2009, Lu Wai jing Mao Fa 
Zi [2008] No. 205. (Measure #88)  
Reply  
 
Upon verification, this policy is a procedural document which do es not constitute a subsidy policy.  
 
 Product Quality Law of the People's Republic of China, adopted at the 30th Meeting 
of the Standing Committee of the Seventh National P eople's Congress on 
22 February  1993. (Measure #89)  
Reply  
 
Policies of central govern ment are not covered by sub -central subsidy notifications.  
 
 Decision of the State Council Concerning Several Issues on Further Strengthening 
Product Quality Work, Guofa [1999] No. 24 (25 December 1999). (Measure #90)  
Reply  
 
Policies of central government  are not covered by sub -central subsidy notifications.  
 
 Circular on Carrying Out Survey on the Brand Building Status of the Enterprises 
with Provincial Famous Export Brands. (Measure #91)  G/SCM/Q2/CHN/73  
 
- 11 - 
 
  Reply  
 
Please see China 's statement made at the autumn regular meeting  of the SCM Committee held in 
October 2015. Upon verification, this policy is an evaluation standard which does not involve 
specific subsidy policies.  
 
6. Why did China not include in either its the central or sub -central subsidy 
notifications the successo r program to the Famous Export Brand program; namely: the 
Internationally Well -Known Brand program, which has been implemented at the central 
and sub -central levels of government (see, e.g., Ministry of Commerce, National 
Development and Reform Commission,  Ministry of Finance, Ministry of Science and 
Technology, General Administration of Customs, State Administration of Taxation, State 
Administration for Industry and Commerce, and General Administration of Quality 
Supervision, Inspection and Quarantine Noti ce on the Publication of the Guiding Opinion 
on Promoting the Cultivation Work of International Well -Known Brands ; Shang Mao Fa 
[2009] No. 150)?  
 
Reply  
 
Upon verification,  Shang Mao Fa ［2009］ No. 150  is a guidance document which does not involve 
specific s ubsidy policies.  
 
7. Why is none of the steel, aluminium  and fishery subsidy programs at the sub -
central level of government included in the notificatio n (see, for example, the 
United  States second counter -notification: G/SCM/Q2/CHN/50, 14 October 2014 and  
fourth counter -notification: G/SCM/Q2/CHN/59, 21 April 2016)?  
 
Reply  
 
As far as we know, there are currently no specific subsidy policies for the steel or aluminium  
industries in China, and China is considering the notification of fisheries subsidies.  
 
8. Why was none of the "Auto Export Base" programs not included in the notification 
(see, China — Certain Measures Affecting the Automobile and Automobile -Parts 
Industries , DS-450)? (The United States argued that this program was a prohibited 
export subsidy .) 
 
Reply  
 
China is of the view that Dispute settlement -related measures should better not be covered by the 
subsidy notifications.  
 
9. Why was none of the "Demonstration Base" programs not included in the 
notification (see, China – Measures Related to Dem onstration Bases and Common 
Service Platforms Programs , DS-489)? (The United States argued that this program was 
a prohibited export subsidy.)  
 
Reply  
 
China is of the view that Dispute settlement -related measures should better not be covered by the 
subsidy  notifications.  
 
10. Over one -half of the programs notified appear to be contingent upon exportation, 
and are (or were) therefore, prohibited. What assurances do Members have that all of 
these programs have expired or have been repealed, and none have not been replaced 
by similar programs?  
 
Reply  
 
The Chinese Government always attaches great significance to the regulatory compliance of trade 
policies. In June 2014, the General Office of the State Council printed and issued the Notice on 
Further Strengthenin g the Regulatory Compliance of Trade Policies, requiring that the policies G/SCM/Q2/CHN/73  
 
- 12 - 
 
  formulated by all departments of the State Council and local people 's governments at all levels and 
their departments should comply with the rules of the WTO.  
 
11. Does the phrase " financial appropriations" mean government grants in all 
instances throughout the notification?  
 
Reply  
 
Just as China 's replies to questions of the United States regarding the second subsidy notification 
of China (G/SCM/Q2/CHN47) mentioned, the form of "financial appropriations " of the subsidy 
programs in China 's notification refers to using the financial funds subject to financial budget 
management.  
 
Program -Specific Questions  
 
12. Programs 2, 3, 62, 96 and 98: Support for New and High Technology – Was ther e a 
central government program or measure under which these programs were 
implemented? If so, please provide the title and legal citation.  
 
Reply  
 
Sub-central subsidy notifications only cover sub -central subsidy policies.  
 
13. Program 8: Subsidy for the Re structuring and Listing of Enterprises – Were the 
companies that benefitted under this program state -owned enterprises? If not, please 
explain.  
 
Reply  
 
All eligible enterprises may apply for this subsidy program.  
 
14. Programs 9, 16, 21, 40, 45, 63, 64, 6 6, 67; Subsidies for Household Appliances – 
To qualify for these programs, did the appliances have to be made in China? Was there a 
central government program or measure under which these programs were 
implemented? If so, please provide the title and legal  citation.  
 
Reply  
 
All eligible enterprises or individuals may apply for this subsidy program. For central supporting 
policies please see Programs 83 and 84 of the central subsidy notification （G/SCM/N/220/CHN -
G/SCM/N/253/CHN -G/SCM/N/284/CHN.  
 
15. Program 10: Subsidy for Automobile Trade -In – To qualify for this program, did the 
new automobile have to be made in China? Was there a central government program or 
measure under which these programs were implemented? If so, please provide the title 
and legal citation.  
 
Reply  
 
All the eligible vehicle owners may apply for this subsidy. For central supporting policies please see 
Program 85 of the central subsidy notification （G/SCM/N/220/CHN -G/SCM/N/253/ CHN-
G/SCM/N/284/CHN ). 
 
16. Programs 11 and 12: Incentive Fund for Famous -Brand Products – The benefits 
under this program appear to be contingent upon export performance. How is the 
program consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
The above policies expired at the end of 2008 and on 18  March 2009 respectively.  G/SCM/Q2/CHN/73  
 
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  17. Program 13: Incentive Fund for Key Enterprises - Was there a central government 
program or measure under which this program were implemented? If so, please provide 
the ti tle and legal citation.  
 
Reply  
 
Sub-central subsidy notifications only cover sub -central subsidy policies.  
 
18. Program 15.1 and 15.2: Support Fund for Key Export Enterprises - The benefits 
under this program appear to be contingent upon export performance . How is the 
program consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, the above policies expired in 2007 and 2009 respectively.  
 
19. Programs 18.1 and 18.2: Incentive Fund for Famous -Brand Products – The benefits 
under this program appear to be contingent upon export performance. How is the 
program consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, the above policies expired in 2007 and 2012 respectively.  
 
20. Program 19: Fund for the D evelopment of Outward -Oriented Private Enterprises – 
How is "outward -oriented" defined or interpreted?  
 
Reply  
 
In our understanding, "outward -oriented " refers to open economic development models that are 
closely linked with the international market.  
 
21. Programs 20 and 41: Special Fund for the Training of Rural Labor – These 
programs appear to provide benefits to rural labourers  and farmers. Please explain how 
these programs are limited to an enterprise or industry or group of enterprises or 
industries und er Article 2 of the Subsidies Agreement?  
 
Reply  
 
China submits subsidy notifications according to Article 25.1 of the SCM Agreement to fulfill the 
transparency obligations under this agreement. China does not pre -estimate the natures of the 
programs notifi ed. In China 's opinion, the programs listed by the United States conform to the 
SCM Agreement 's definition of  specificity as they  provide support to specific sectors, products or 
regions.  
 
22. Programs 22.1 and 22.2: Incentive Fund for Famous -Brand Product s - The benefits 
under this program appear to be contingent upon export performance. How is the 
program consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, the above policies expired in 2008 and 2011 respectively.  
 
23. Programs 23.1 and 23.2: Incentive for Establishment of Enterprise Standards – 
How are these programs specific under Article 2 of the Subsidies Agreement?  
 
Reply  
 
The beneficiaries of this policy are specific enterprises.   
 G/SCM/Q2/CHN/73  
 
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  24. Programs 25.1 and 25.2: Incentiv e Fund for Measurement and Testing Systems of 
Enterprises – How are these programs specific u nder Article 2 of the 
Subsidies  Agreement?  
 
Reply  
 
The beneficiaries of this policy are specific enterprises. If the United States considers that this 
document sho uld not be notified, why has the United States included this policy in Document 
G/SCM/Q2/CHN/42?  
 
25. Program 26: Incentive Fund for the Establishment of Trading Companies Overseas 
- The benefits under this program appear to be contingent upon export perfo rmance. 
How is the program consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
The beneficiaries of this policy are enterprises with overseas trading companies engaged in 
international trade, and there are no requirements of export performan ce. 
 
26. Program 32: Incentive Fund for Famous -Brand Products - The benefits under this 
program appear to be contingent upon export performance. How is the program 
consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Program 32 of the Notific ation should be "Incentive fund for mechanical, electronic, high and new 
technology products of Shenzhen Municipality ".  
 
27. Program 33: Incentive Fund for Mechanical, Electronic, High and New Technology 
Products – Was there a central government program o r measure under which this 
program were implemented? If so, please provide the title and legal citation.  
 
Reply  
 
Program 33 of the Notification should be "Incentive fund for famous -brand products of Futian 
District, Shenzhen Municipality ".  
 
28. Program 34 : Incentive Fund for Famous -Brand Products - The benefits under this 
program appear to be contingent upon export performance. How is the program 
consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Program 34 of the Notification should be "Incentive fund for technological centers of enterprises of 
Futian District, Shenzhen Municipality ". 
 
29. Programs 36, 37 and 38: Incentive Fund for Famous -Brand Products – The benefits 
under these programs appear to be contingent upon export performance. How  are these 
programs consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, the two policies expired in 2009 and 2008 respectively.  
 
30. Program 39: Fund for Using Whole Village's Resources to Develop Financial 
Support for the  Poor – This program appears to provide benefits to poor villages for 
poverty alleviation. Please explain how are this program constitutes a subsidy under 
Article 1 of the Subsidies Agreement and is limited to an enterprise or industry or group 
of enterpri ses under Article 2 of the Subsidies Agreement.  
 G/SCM/Q2/CHN/73  
 
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  Reply  
 
China submits subsidy notifications according to Article 25.1 of the SCM Agreement to fulfill the 
transparency obligations under this agreement. China does not pre -estimate the natures of the 
programs  notified.  
 
31. Program 40.1 and 40.2: Special Fund for the Development of Foreign Trade and 
Economic Cooperation - The benefits under these programs appear to be contingent 
upon export performance. How is the program consistent with Article 3.1(a) of the 
Subsidies Agreement?  
 
Reply  
 
Upon verification, the two policies expired in 2008 and 2009 respectively.  
 
32. Program 42: Incentive Fund for Famous -Brand Products - The benefits under this 
program appear to be contingent upon export performance. How is the program 
consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, this policy expired in 2009.  
 
33. Program 44: Special Fiscal Fund to Alleviate Poverty - This program provides 
benefits "to poor people" to "help increase their i ncome." Please explain how this 
program constitutes a subsidy under Article 1 of the Subsidies Agreement and is limited 
to an enterprise or industry or group of enterprises or industries under Article 2 of the 
Subsidies Agreement.  
 
Reply  
 
China submits sub sidy notifications according to Article 25.1 of the SCM Agreement to fulfill the 
transparency obligations under this agreement. China does not pre -estimate the natures of the 
programs notified.  
 
34. Programs 46, 47.1, 47.2, 47.3: Incentive Fund for Famous -Brand Products - The 
benefits under these programs appear to be contingent upon export performance. How 
are these programs consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, the four policies expired in 2008, 2004, 2005 a nd 2006 respectively.  
 
35. Program 49, 50 and 51: Incentive Fund for Famous -Brand Products - The benefits 
under these programs appear to be contingent upon export performance. How is the 
program consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply 
 
Upon verification, the three policies expired in 2008, 2007 and 2007 respectively.  
 
36. Programs 52 and 53: Support for the Development of Foreign Trade - The benefits 
under these programs appear to be contingent upon export performance. How are thes e 
programs consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, the two policies expired in 2007 and 2008 respectively.  
 
37. Program 54: Incentive Fund for Famous -Brand Products - The benefits under this 
program appear to b e contingent upon export performance. How is the program 
consistent with Article 3.1(a) of the Subsidies Agreement?  G/SCM/Q2/CHN/73  
 
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  Reply  
 
Upon verification, this policy expired in 2008.  
 
38. Program 55: Fund for Interest Discount of Loans for the Export of High and new 
Technology Products and Products of the Equipment Manufacturing Industry - The 
benefits under this program appear to be contingent upon export performance. How is 
the program consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verificati on, this policy expired in 2007.  
 
39. Programs 60.1, 60.2, 60.3, 60.4, 60.5: Support Fund for the Development of 
Foreign Trade - The benefits under these programs appear to be contingent upon export 
performance. How are these programs consistent with Artic le 3.1(a) of the Subsidies 
Agreement?  
 
Reply  
 
Upon verification, the five policies expired in 2003, 2004, 2005, 2006 and 2007 respectively.  
 
40. Program 65: Incentive Fund for Foreign Trade Enterprises - The benefits under this 
program appear to be conting ent upon export performance. How is this program 
consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, this policy expired in 2012.  
 
41. Program 68: Fund for Promoting the Trade of Light Industry and Textile Products - 
Was t here a central government program or measure under which this program was 
implemented? If so, please provide the title and legal citation.  
 
Reply  
 
Upon verification, this policy is a sub -central subsidy policy.  
 
42. Programs 71 and 72: Incentive Fund for F amous -Brand Products - The benefits 
under these programs appear to be contingent upon export performance. How are these 
programs consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, the two policies expired in 2008.  
 
43. Programs 74.1, 74.2, and 74.3: Incentive Fund for Famous -Brand Products - The 
benefits under these programs appear to be contingent upon export performance. How 
are these programs consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verifi cation, the three policies expired in 2005, 2008 and 2012 respectively.  
 
44. Programs 76.1, 76.2, 76.3, 76.4, 76.5, 76.6: Incentive Fund for Famous -Brand 
Products - The benefits under these programs appear to be contingent upon export 
performance. How are these programs consistent with Article 3.1(a) of the Subsidies 
Agreement?  
 
Reply  
 
Upon verification, the six policies expired in 2005, 2006, 2007, 2008, 2009 and 2013 respectively.  G/SCM/Q2/CHN/73  
 
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  45. Program 78: Incentive Fund for the Export of Textile Products with Self -Owned 
Brands - The benefits under this program appear to be contingent upon export 
performance. How is the program consistent with Article 3.1(a) of the Subsidies 
Agreement?  
 
Reply  
 
Upon verification, this policy expired in 2005.  
 
46. Program 79: Incentiv e Fund for Products with Trademark or Patent - The benefits 
under this program appear to be contingent upon export performance. How is the 
program consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, this policy expired in 2005.  
 
47. Programs 80.1, 80.2 and 81: Incentive Fund for Famous -Brand Products - The 
benefits under these programs appear to be contingent upon export performance. How 
are these programs consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, the two policies expired in 2006.  
 
48. Program 65: Incentive Fund for Foreign Trade Enterprises - The benefits under this 
program appear to be contingent upon export performance. How is this program 
consistent with Article 3.1(a) of the S ubsidies Agreement?  
 
Reply  
 
Please refer to the reply to Question 40.  
 
49. Programs 83, 84, 86 and 87: Incentive Fund for Famous -Brand Products - The 
benefits under these programs appear to be contingent upon export performance. How 
are these programs cons istent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, the four policies expired in 2007, 2006, 2006 and 2007 respectively.  
 
50. Program 91: Incentive Fund for Famous -Brand Products - The benefits under this 
program appear to be contingent upon export performance. How is the program 
consistent with Article 3.1(a) of the Subsidies Agreement?  
 
Reply  
 
Upon verification, this policy expired in 2008.  
 
51. Program 92: Incentive for Enterprises Technology Centers and Fund for Export 
Bran ds - The benefits under this program appear to be contingent upon export 
performance. How is this program consistent with Article 3.1(a) of the Subsidies 
Agreement?  
 
Reply  
 
Upon verification, this policy is not linked with the export performance.  
 
52. Prog ram 93: Incentive Fund for Famous -Brand Products - The benefits under this 
program appear to be contingent upon export performance. How is the program 
consistent with Article 3.1(a) of the Subsidies Agreement?  
 G/SCM/Q2/CHN/73  
 
- 18 - 
 
  Reply  
 
Upon verification, this policy expired in 2007.  
 
53. Program 100: Incentive Fund for Famous -Brand Products - The benefits under this 
program appear to be contingent upon export performance. How is the program 
consistent with Article 3.1(a) of the Subsidies  Agreement?  
 
Reply  
 
Upon verification, this policy expired in 2008.  
 
 
__________