G/SCM/Q2/CHN/99  
 
27 April 2021 
(21-3536) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
  
SUBSIDIES  
REPLIES TO FOLLOW -UP QUESTIONS1 POSED BY THE UNITED STATES REGARDING  
THE 2019 NEW AND FULL NOTIFICATION OF CHINA2 
The following communication, dated and received on 26 April 2021, is being circulated at the request 
of the delegation of China . 
 
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Question 1  
In response to numerous questions regarding specifically identified programs in China 
that were not included in China 's notification, China responded by stating that China will 
not answer questions with respect to programs not included in China 's notification.  Given 
that the purpose of reviewing Members ' notifications is to increase the transparency of 
each Members ' programs and that the gener al practice of all other Members is to answer 
such questions, please explain the reasoning behind China 's refusal to answer in writing 
any questions on programs that were not included in its notification, even if the title and 
legal citation for the progra m is provided?  
Reply : 
 
With regard to  the policies not notified by China, other members may raise concern in accordance 
with Article 25.8 and 25.10 of the SCM Agreement, which does not in fact require notifying members 
to make written replies to those uncovered policies. If other members dema nd that a notifying 
member make explanations with respect to the uncovered policies in the list of questions, it in 
essence imposes an additional obligation of written replies in the Article 25.8 and 25.10.  
 
Nevertheless, in order to show China 's earnest e ffort to improve the transparency of its trade policies 
and to address the concerns of other members, China has shared the information it has verified with 
other members in its written replies. But this does not mean that China agrees with the practice of 
some members that raises concern with regard to uncovered policies in the list of written questions.  
 
Question 2  
Please explain what a "public service platform " is. 
Reply : 
 
The public service platform is supported to provide industries with public services on generic 
technology research and development, test verification, standard testing, etc.  
 
 
1 G/SCM/Q2/CHN/86 (original questions); G/SCM/Q2/CHN/93 (replies) ; G/SCM/Q2/CHN/97 (follow -up 
questions) . 
2 G/SCM/N/343/CHN.  G/SCM/Q2/CHN/99  
 
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  Question 3  
Based on the United States' review of the MOFCOM Gazette, it appears that none of the 
legal measures referenced in the sub -central portion of Chi na's notification have been 
published in the MOFCOM Gazette as China is obligated to do under China's Protocol of 
Accession . The United States considers China 's transparency obligations under its 
Protocol of Accession to be critically important.  In address ing this concern, China replied 
that "Verification is underway with relevant departments ." Why was a verification with 
the relevant departments necessary?  Does China accept its obligation to publish the legal 
measures that establish and implement its subsi dy programs at all levels of government?  
Reply : 
 
Ministry of Commerce, P.R.C published 80 issues of China Foreign Trade and Economic Cooperation 
Gazette annually. The Gazette can be subscribed through mail and is published on the website of 
MOFCOM, with over 3.9 million page views annually.  
 
Question 4  
In Question 13 of our original questions, the United States asked : According to the 
Domestic Refined Fuel Price Reform Upward Adjustment According to the System notice 
issued on December  2, 2019 (and earlier iterations of this program), purchasers of diesel  
fuel in the fishery sector enjoy a preferential price compared to other retail purchasers, 
based on a state determined sales price . Does China intend to notify this program and 
publish it in the MOFCOM Gazette?  China responded stating : "China has not impl emented 
the measure mentioned by the US, and purchasers of diesel fuel in the fishery sector do 
not enjoy a preferential price compared to other retail purchasers ." However, we note 
that China appears to have continued to implement the measure throughout 2 020, issuing 
adjustment notices for the program on a near -monthly basis . Moreover, the latest 
Domestic Refined Fuel Price Reform Upward Adjustment According to the System notice 
was just issued by the National Development Reform Commission on January  15, 2021 
(Price Department of the National Development and Reform Commission, Domestic 
Refined Fuel Price Reform Upward Adjustment According to the System;  
https://www.ndrc.gov.cn/xwdt/xwfb/202101/t20210115_1264991.html ). Therefore, it 
appears the program remains in place.  Please explain.  
Reply : 
After checking with relevant authorit ies, the policy has been repealed.  
Question 5  
Have other provinces , aside from Shandong , implemented distant water fishery subsidy 
policies at the municipal level?  
Reply : 
 
Please refer to the sub -central subsidy notifications submitted by China.  
 G/SCM/Q2/CHN/99  
 
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  Question 6  
This question was not answered with respect to the subs -central programs listed below.  
For each of the sub -central fishing programs identified below, how much of the funding is 
used to : (1) decrease the operation costs of domestic marine vessels , (2) decrease the 
operation costs of distant water vessels, (3) reward distant water fishing vessels for 
bringing catch back to China for processing, (4)  provide insurance and other income 
supplement to fishermen during a moratorium on fishing, or (5) sup port vessel 
refurbishing ? The programs for which this question was not answered are : Zhejiang 
Province (Grant for policy -based fishery mutual insurance ; and Fund for marine and 
fishery comprehensive managemen t and industr y development) ; Fuzhou City, Fujian 
Province (Fund for fishing ports) ; Shandong Province (Fund for distant water fishery 
development) ; Production and living allowance for fishermen during fishing close 
seasons ; Fund for aquaculture ; and Living allowances for fisherman during fishing c lose 
seasons) ; Dalian City of Liaoning Province (Fund for marine and fishery development) ; 
Qingdao City of Shandong Province (Fund for distant water fishery) ; Ningbo City of 
Zhejiang Province (Fund for policy -based fishery insurance).  
Reply : 
 
These sub -central programs are under verification.  
 
Question 7  
Is it China 's position that none of the Made in China 2025 related subsidy programs at the 
sub-central level of government provides subsidies contingent upon the use of domestic 
over imported goods?  
Reply : 
 
China has always followed the market -driven principle in formulating and implementing the Made in 
China 2025 program. The indicators in the program are of predictive and guiding nature rather than 
compulsory, which is mainly used to provide guidanc e information. The "technology roadmap" is a 
green book formulated by the academia to forecast the development pathways of technologies in 
the future, which is not linked to relevant policies and funding of the government.  
 
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