G/SCM/N/220/CHN  
G/SCM/N/253/CHN  
G/SCM/N/284/CHN  
 
30 October 2015  
(15-5760)  Page: 1/84  
Committee on Subsidies and Countervailing Measures  Original: English  
 
  SUBSIDIES 
 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE GATT 1994 AND 
ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES 
CHINA 
The following communication, dated 27 October 2015, is being circulated at the request of the 
Delegation of China. 
 
_______________ 
 
 
The following notification constitutes China's new and full notification of information on programmes granted or maintained at the central government level during the period from 2009 
to 2014.  
 Insofar as the notification is a transparency-orientated obligation that, pursuant to Article 25.7 of the SCM Agreement, does not prejudge either the legal status of the notified programmes under 
GATT 1994 and the SCM Agreement, the effects un der the SCM Agreement or the nature of the 
programmes themselves, China has included certain programmes in this notification which arguably are not (or are not always) subsidies or specific subsidies subject to the notification 
obligation within the meaning of the SCM Agreement. G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  TABLE OF CONTENTS 
 
1   PREFERENTIAL TAX POLICIES FO R FOREIGN-INVESTED ENTERPRISES ...................... 6  
2   PREFERENTIAL TAX POLICIES FOR FOREIGN-INVESTED ENTERPRISES 
ENGAGED IN ENERGY, TRANSPORTATION  INFRASTRUCTURE PROJECTS ......................... 7  
3   PREFERENTIAL TAX POLICIES FOR CHINESE-FOREIGN EQUITY JOINT 
VENTURES ENGAGED IN PORT AND DOCK CONSTRUCTION .............................................. 8  
4   PREFERENTIAL TAX POLICIES  FOR ENTERPRISES WITH FOREIGN 
INVESTMENT RECOGNIZED AS HIGH OR NEW TECHNOLOGY ENTERPRISES 
ESTABLISHED IN THE STATE HIGH OR NEW TECHNOLOGY INDUSTRIAL DEVELOPMENT ZONES ...................................................................................................... 9
 
5   PREFERENTIAL TAX POLICIES FOR ENTERPRISES RECOGNIZED AS HIGH OR 
NEW TECHNOLOGY ENTERPRISES ESTABL ISHED IN THE STATE HIGH OR NEW 
TECHNOLOGY INDUSTRIAL DEVELOPMENT ZONES ......................................................... 10  
6   PREFERENTIAL TAX POLICIES  FOR HIGH OR NEW TECHNOLOGY 
ENTERPRISES................................................................................................................. 11  
7   PREFERENTIAL TAX POLICIES  FOR ENTERPRISES WITH FOREIGN 
INVESTMENT ESTABLISHED IN SPEC IAL ECONOMIC ZONES (EXCLUDING 
SHANGHAI PUDO NG AREA) ............................................................................................ 12  
8   PREFERENTIAL TAX POLICIES  FOR ENTERPRISES WITH FOREIGN 
INVESTMENT ESTABLISHED IN THE COSTAL ECONOMIC OPEN AREAS AND IN 
THE ECONOMIC AND TECHNOLOGI CAL DEVELOPMEN T ZONES ....................................... 13  
9   PREFERENTIAL TAX POLICIES  FOR ENTERPRISES WITH FOREIGN 
INVESTMENT ESTABLISHED IN PU DONG AREA OF SHANGHAI ....................................... 14  
10   PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN 
INVESTMENT ESTABLISHED IN THE THREE GORGES OF YANGTZE RIVER 
ECONOMIC ZONE ............................................................................................................ 15  
11   PREFERENTIAL TAX POLICIES  IN THE WESTERN REGIONS ..................................... 17  
12   SPECIAL FISCAL FUND TO ALLEVIATE POVERTY ..................................................... 18  
13   PREFERENTIAL TAX TREATMENT FO R PUBLIC INFRASTR UCTURE PROJECTS 
THAT ARE PARTICULARLY SU PPORTED BY TH E STAT E ................................................... 19  
14   PREFERENTIAL TAX TREATMENT FOR PROJECTS FOR ENVIRONMENTAL 
PROTECTION, WATER AND EN ERGY CONSER VATION ..................................................... 20  
15   PREFERENTIAL TAX TREATMENT FOR BUILDING MATERIALS PRODUCTS 
PRODUCED WITH INTEGRATED UT ILIZATION OF RESOURCE S ....................................... 21  
16   PREFERENTIAL TAX TREATMENT FOR BUILDING MATERIALS PRODUCTS 
PRODUCED WITH INTEGRATED UT ILIZATION OF RESOURCE S ....................................... 22  
17   PREFERENTIAL TAX TREATMEN T FOR PRODUCTS PRODUCED WITH 
INTEGRATED UTILIZATIO N OF RESOURCES ................................................................... 23  
18   PREFERENTIAL VAT ON COMPREHENSIVELY UTILIZED PRODUCTS WITH 
AGRICULTURAL SURPLUS AND FORESTRY  RESIDUES AS RAW MATERIALS .................... 24  
19   PREFERENTIAL CONSUMPTION TAX ON COMPREHENSIVELY UTILIZED AND 
PRODUCED PETROLEU M PRODUCTS ............................................................................... 25  
20   PREFERENTIAL VAT ON ELECTRICAL PRODUCTS PRODUCED BY 
PHOTOVOLTAIC-GENER ATED POWER ............................................................................. 26  
21   PREFERENTIAL VAT ON HYDROPOWER PRODUCTS ................................................. 27  
22   PREFERENTIAL TAX TREATMENT FOR ENERGY-SAVING AND NEW ENERGY 
VEHICLES AND VESSELS ................................................................................................ 28  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  23   PREFERENTIAL TAX TREATM ENT FOR THE PUBLIC BUSES AND 
TROLLEYBUSES PURCHASED BY UR BAN PUBLIC TRANSPORTATION 
ENTERPRISES................................................................................................................. 28  
24   PREFERENTIAL VEHICLE PURCHASE  TAX ON LOW-EMI SSION CARS ........................ 29  
25   SPECIAL FUND FOR THE INDU STRIALIZATION OF WIND POWER 
EQUIPMENT ................................................................................................................... 3 0 
26   PREFERENTIAL TAX POLICIES FO R CLEAN DEVELOPMENT MECHANISM .................. 31  
27   PREFERENTIAL TAX POLICIES FOR ENTERPRISES MAKING LITTLE PROFITS .......... 32  
28   PREFERENTIAL VAT POLICIES FOR ENTERPRISES THAT EMPLOY DISABLED 
PEOPLE ........................................................................................................................ .. 33 
29   PREFERENTIAL INCOME TAX POLICIES FOR ENTERPRISES THAT EMPLOY 
DISABLED PE OPLE ......................................................................................................... 34  
30   PREFERENTIAL TAX TREATMENT FOR IMPORTED PRODUCTS EXCLUSIVELY 
USED BY THE DISABLED PEOPLE .................................................................................... 34  
31   PREFERENTIAL TAX TREATMENT FOR PRODUCTS FOR THE DISABLED 
PEOPLE ........................................................................................................................ .. 35 
32   PREFERENTIAL TAX TREATMENT FOR ENTERPRISES PRODUCING PRODUCTS 
EXCLUSIVELY USED BY TH E DISABLED PEOPLE ............................................................. 36  
33   PREFERENTIAL TAX POLICIES FOR THE RESEARCH AND DEVELOPMENT OF 
ENTERPRISES................................................................................................................. 37  
34   PREFERENTIAL TAX POLICIES FOR ENTERPRISES TRANSFERRING 
TECHNOLOGY ................................................................................................................. 38  
35   RESEARCH AND DEVELOPMENT FUND FOR INDUSTRIAL TECHNOLOGIES ................ 38  
36   DEVELOPMENT FU ND FOR SM ES .............................................................................. 39  
37   SPECIAL FUND FOR ESTABLISHMEN T OF SERVICE SYST EM FOR SMES .................... 40  
38   FUND FOR PROMOTION OF COORDINATED DEVELOPMENT OF FOREIGN 
TRADE AND ECONOMIC RELA TIONS AMONG REGIONS ................................................... 41  
39   SPECIAL FUND FOR THE DEVELOPMENT OF INTERNATIONAL ECONOMY AND 
TRADE ......................................................................................................................... ... 42 
40   FUND FOR OPTIMIZING THE IMPORT AND EXPORT STRUCTURE OF 
MECHANICAL AND ELECTRICAL  PRODUCTS AS WELL AS HIGH-TECH PRODUCTS ........... 43  
41   FUND FOR PROMOTING THE TRADE OF AGRICULTURAL, LIGHT INDUSTRY 
AND TEXTILE PRODUCTS ................................................................................................ 44  
42   PREFERENTIAL TAX POLICIES FOR ENTERPRISES ENGAGED IN PROJECTS 
OF PRELIMINARY PROCESSING OF AGRICULTURAL, FOREST, ANIMAL AND 
FISHERY PRODUCTS ....................................................................................................... 45  
43   FUND FOR SPECIALIZED ECONOM IC COOPERATIVES OF FARMERS ......................... 45  
44   FUND FOR SUBSIDIZING THE TR AINING OF RURAL MIGRANT LABOUR 
FORCE ......................................................................................................................... ... 46 
45   SUBSIDY FUND FOR TRANSFORMING AGRICULTURAL SCIENTIFIC 
ACHIEVEMENTS AND PROMOTIN G TECHNICAL SE RVICES .............................................. 47  
46   SUBSIDY FOR PROMOTING SU PERIOR STRAINS AND SEED S .................................. 48  
47   SUBSIDY FOR PURCHASING AGRICULTURAL MACHINERY AND TOOLS .................... 49  
48   COMPREHENSIVE SUBSIDIES FOR AGRICULTURAL  INPUTS .................................... 49  
49   DIRECT SUBSIDY TO FARMERS ................................................................................ 50  
50   FUND FOR AGRICULTURAL COMPREHENSIVE DEVELOPMENT .................................. 51  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  51   FUND FOR INTEREST DISCOUNT OF LOANS FOR THE PURPOSE OF 
AGRICULTURAL WATER-SA VING IRRIGA TION ............................................................... 52  
52   SUBSIDY FUND FOR SMALL FARMLAND WATER CONSERVANCY FACILITIES 
AND NATIONAL KEY CONSTRUCTION PROJECTS ON WATER AND SOIL 
CONSERVATI ON ............................................................................................................. 53  
53   FUND FOR DISASTER PREVENTION AND RELIEF IN AGRICULTURAL 
PRODUCTION ................................................................................................................. 54  
54   SUBSIDY FOR PREVENTION FROM AND CONTROL OF PEST AND DISEASE IN FORESTRY ......................................................................................................................  54
 
55   SUBSIDY FUND FOR AGRICULTURAL RESOURCES AND ECOLOGICAL 
PROTECTION .................................................................................................................. 5 5 
56   PREFERENTIAL TAX POLICIES FOR THE IMPORTS OF CHINA GRAIN 
RESERVES CORP ORATION .............................................................................................. 56  
57   PREFERENTIAL TAX TREATMENT FOR TEA SOLD IN THE BORDER AREAS ................ 57  
58   PREFERENTIAL TAX TREATMENT FOR IMPORTED PRODUCTS FOR THE 
PURPOSE OF REPLACING THE PLANTING OF POPPIES ................................................... 58  
59   PREFERENTIAL TAX POLICIES ON IMPORTS OF SEEDS (SEEDLINGS), 
BREEDING STOCK (FOWL), FISH FRIES (BREEDS) AND WILD ANIMALS AND 
PLANTS KEPT AS BREEDS DURING THE PERIOD OF THE "ELEVENTH FIVE-YEAR PLAN" AND "TWELVETH FIVE-YEAR PLAN" .................................................................... 59
 
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, CHIN A TO CHINA ....................................................................................... 60  
61   PREFERENTIAL TAX TREATMENT FOR IMPORT OF EQUIPMENTS ............................. 60  
62   SUBSIDY FOR SCRAPPING OLD VEHICLES ............................................................... 61  
63   PREFERENTIAL CONSUMPT ION TAX ON RE FINED OIL ............................................. 62  
64   PREFERENTIAL TAX POLICIES FO R INTEGRATED CIRC UIT INDUST RY .................... 63  
65   FUND FOR RESEARCH AND DEVELOPMENT OF INTEGRATED CIRCUIT 
INDUSTRY ......................................................................................................................  65 
66   FUND FOR THE DEVELOPMENT OF ELECTRICAL INFORMATION INDUSTRY .............. 66  
67   FUND FOR HIGH TECHNOLOGY R&D FOR PACKAGIN G INDUSTRY ........................... 67  
68   SUBSIDY FUND FOR JINTAIYA NG (GOLDEN SUN) DEMONSTRATION 
PROJECT ....................................................................................................................... . 67 
69   SUBSIDY FUND FOR ENERGY-O RIENTED UTILIZATION OF STRAW .......................... 68  
70   SUBSIDY FUND FOR BIO-ENERGY AND BIOCHEMICAL RAW MATERIALS 
BASES ......................................................................................................................... ... 69 
71   INCENTIVE FUND FOR NON-G RAIN GUIDED BIO-ENERGY AND 
BIOCHEMICAL INDUST RY............................................................................................... 70  
72   INCENTIVE FUND FOR TRAN SFORMATION OF ENERGY-SAVING 
TECHNOLOGY ................................................................................................................. 71  
73   PROMOTION FUND FOR EFFI CIENT LIGHTING PRODUCTS ...................................... 72  
74   SUBSIDY FUND FOR THE PROMOTIO N OF ENERGY-SAVING PRODUCTS .................. 73  
75   SUBSIDY FUND FOR THE RENE WABLE ENERGY-SAVING BUILDING 
MATERIALS .................................................................................................................... 74 
76   SPECIAL FUND FOR ENERGY CONSERVATION AND EMISSION REDUCTION 
OF COMMUNICATION AND TRANSPORTATION ............................................................... 74  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  77   SUBSIDY FUND FOR SHIP-TYPE STANDARDIZATION OF THE MAIN LINE OF 
THE YANGTZE RIVER ...................................................................................................... 75  
78   SUBSIDY FUND FOR SHIP-TYPE STANDARDIZATION OF IN-LAND RIVER ................ 76  
79   SPECIAL FUND FOR THE DEVELO PMENT OF CIRCULAR ECONOMY ........................... 77  
80   SUBSIDY FUND GRANTED BY TH E CENTRAL FINANCE TO CLOSE SMALL 
ENTERPRISES................................................................................................................. 78  
81   SPECIAL FUND FOR THE DEVELOPMENT OF STRATEGIC EMERGING 
INDUSTRY ......................................................................................................................  79 
82   SUBSIDY FUND FOR PRODUCING GOODS SPECIALLY NEEDED BY THE 
ETHNIC MINO RITIES...................................................................................................... 79  
83   SUBSIDY FOR HOUSEHOLD ELEC TRIC APPLIANCES TRADE-IN ................................ 80  
84   SUBSIDY FOR THE SALES OF HOUSEHOLD ELECTRIC APPLIANCES IN RURAL 
AREAS ......................................................................................................................... ... 81 
85   SUBSIDY FOR THE SALES OF AUTOMOBILES AND MOTORCYCLES IN RURAL 
AREAS ......................................................................................................................... ... 82 
86   PREFERENTIAL TAX TREATMENT FOR ANTI-HIV-AID S MEDICINE ........................... 83  
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  1  PREFERENTIAL TAX POLICIES FOR FOREIGN-INVESTED ENTERPRISES 
1. Title of the subsidy programme 
 
Preferential tax policies for foreign-invested enterprises. 
 
2. Period covered by the notification 
 
2009-2014. 
 3. Policy objective and/or purpose of the subsidy 
 
To encourage foreign investment. 
 4. Background and authority for the subsidy 
 Ministry of Finance (MOF), State Administrati on of Taxation (SAT), Ministry of Commerce 
(MOFCOM). 
 
5. Legislation under which it is granted 
 Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and 
Foreign Enterprises (1991); 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment  and Foreign Enterprise (1991); 
State Council Circular Guo Fa No. 37 of 2000; 
Law of the People's Republic of China on Enterprise Income Tax (2007); Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007; MOF Circular Cai Shui No. 1 of 2008.  
6. Form of the subsidy 
 
Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 
Any enterprise with foreign investment of a produc tion nature to operate for a period of no less 
than 10 years shall, from the year beginning to make profit, be exempted from the enterprise 
income tax in the first and second years and allowe d a reduction by half in the third to the fifth 
years ("2 years of exemption and 3 years of reduction by half"). 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
Starting from 1 January 2008, enterprises regist ered before 16 March 2007 for their establishment 
which are eligible for the preferential treatment of  "2 years of exemption and 3 years of reduction 
by half" may continue to enjoy the treatment till its expiration on them; among these enterprises, 
for those that have not started to enjoy the treatment due to the fact that they have not begun to make profit, the starting year for them to enjoy the treatment shall be 2008. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  2  PREFERENTIAL TAX POLICIES FOR FOREIGN-INVESTED ENTERPRISES ENGAGED IN 
ENERGY, TRANSPORTATION INFRASTRUCTURE PROJECTS 
1. Title of the subsidy programme 
 
Preferential tax policies for foreign-invested enterprises engaged in energy, transportation 
infrastructure projects.  
2. Period covered by the notification 
 
2009-2014.  
3. Policy objective and/or purpose of the subsidy 
 
To encourage foreign investment in infrastructure construction. 
 
4. Background and authority for the subsidy 
 
MOF, SAT, MOFCOM. 
 5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and 
Foreign Enterprises (1991); Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment  and Foreign Enterprise (1991); 
State Council Circular Guo Fa No.13 of 1999; Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); State Council Circular Guo Fa No. 39 of 2007.  
6. Form of the subsidy 
 
Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 
Starting from 1 January 2008, foreign-invested en terprises engaged in energy and transportation 
infrastructure projects such as harbours and wharfs which were registered before 16 March 2007 for their establishment and eligible under this program for the 15% enterprise income tax rate were given a 5 year period to fulfil the transition from the tax rate of 15% to the statutory 
enterprise income tax rate of 25% as stipulated in Law of the People's Republic of China on 
Enterprise Income Tax (2007), i.e., the applicable enterprise income tax rate was 18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011, and 25% in 2012. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January 2008 to 2012  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  3  PREFERENTIAL TAX POLICIES FOR CHINESE-FOREIGN EQUITY JOINT VENTURES 
ENGAGED IN PORT AND DOCK CONSTRUCTION 
1. Title of the subsidy programme 
 
Preferential tax policies for Chinese-foreign equity joint ventures engaged in port and dock 
construction.  
2. Period covered by the notification 
 
2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To encourage foreign investment into infrastructure construction.   
 
4. Background and authority for the subsidy 
 
MOF, SAT, MOFCOM. 
 5. Legislation under which it is granted 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment  and Foreign Enterprises (1991); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007.  
6. Form of the subsidy 
 
Preferential tax treatment.  
7. To whom and how the subsidy is provided 
 
For Chinese-foreign equity joint ventures engaged in port and dock construction: 
1) Starting from 1 January 2008, enterprises registered before 16 March 2007 for their 
establishment were given a 5-year period to fulfil the transition from the tax rate of 15% to the new statutory tax rate of 25%, i.e., the applicable enterprise income tax rate was 18% in 2008, 
20% in 2009, 22% in 2010, 24% in 2011, and 25% in 2012.  
2) Enterprises with an operating period of no less than 15 years shall, starting from the year beginning to make profit, be exempted from the enterprise income tax in the first through the fifth years and allowed a tax reduction by half in the sixth through the tenth years ("5 years of 
exemption and 5 years of reduction by half"). 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1) 1 January 2008 to 2012; 
2) Enterprises eligible for the preferential trea tment of "5 years of exemption and 5 years of 
reduction by half" may continue to enjoy the treatment till its expiration on them, among these enterprises, for those that have not started to enjoy the treatment due to the fact that they have 
not begun to make profit, the starting year for them to enjoy the treatment shall be 2008. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available. G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  4  PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN INVESTMENT 
RECOGNIZED AS HIGH OR NEW TECHNOLOGY ENTERPRISES ESTABLISHED IN THE STATE HIGH OR NEW TECHNOLOGY INDUSTRIAL DEVELOPMENT ZONES 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment recognized as high or new technology enterprises established in the State high or new technology industrial development 
zones. 
 2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To encourage high and new technology industrial development and enhance the technology progress. 
 
4. Background and authority for the subsidy 
 MOF, SAT, MOFCOM, Ministry of Science and Technology (MOST). 
 
5. Legislation under which it is granted 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment  and Foreign Enterprise (1991); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007.  6. Form of the subsidy 
 Preferential tax treatment.  
7. To whom and how the subsidy is provided 
 
For the enterprises with foreign investment recogn ized as high or new technology enterprises and 
established in the State high or new technology industrial development zones ： 
 
1) The enterprise income tax shall be levied  at a reduced rate of 15%. Starting from 
1 January 2008, enterprises registered before 16 March 2007 for their establishment were given a 
5 year period to fulfil the transition from the tax rate of 15% to the new statutory tax rate of 25%, i.e., the applicable enterprise income tax rate was 18% in 2008, 20% in 2009, 22% in 2010, 24% 
in 2011, and 25% in 2012. 
2) The Chinese-foreign equity joint ventures with an operation period of no less than 10 years shall, starting from the year beginning to make profit, be exempted from the enterprise income 
tax in the first and second years. Starting from 1 January 2008, enterprises registered before 16 
March 2007 for their establishment which are eligible  for the preferential treatment of 2 years of 
exemption from enterprise income tax may continue  to enjoy the treatment till its expiration on 
them; among these enterprises, for those that have not started to enjoy the treatment due to the 
fact that they have not begun to make profit, the starting year for them to enjoy the treatment 
shall be 2008. Foreign-invested enterprises established in the high or new technology industrial development zones which are located in the Special Economic Zones and the economic and 
technological development zones shall be governed by the preferential tax policies concerning the 
Special Economic Zones and the economic and technological development zones.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 10 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
1) Starting from 1 January 2008, enterprises registered before 16 March 2007 for their establishment were given a 5 year period to fulfil  the transition from the tax rate of 15% to the 
new statutory tax rate of 25%, i.e., the applicable enterprise income tax rate was 18% in 2008, 
20% in 2009, 22% in 2010, 24% in 2011, and 25% in 2012. 2) Starting from 1 January 2008, enterprises registered before 16 March 2007 for their 
establishment which are eligible for the preferen tial treatment of 2 years of exemption from 
enterprise income tax may continue to enjoy the treatment till its expiration on them; among these enterprises, for those that have not started to enjoy the treatment due to the fact that they 
have not begun to make profit, the starting year for them to enjoy the treatment shall be 2008. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 5  PREFERENTIAL TAX POLICIES FOR ENTERPRISES RECOGNIZED AS HIGH OR NEW 
TECHNOLOGY ENTERPRISES ES TABLISHED IN THE STATE HI GH OR NEW TECHNOLOGY 
INDUSTRIAL DEVELOPMENT ZONES 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises recognized as high or new technology enterprises 
established in the State high or new technology industrial development zones.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 To encourage high and new technology industrial development and enhance the technology 
progress. 
 4. Background and authority for the subsidy 
 MOF, SAT, MOST.  
5. Legislation under which it is granted 
 
Provisional Regulations of the People's Repub lic of China on Enterprise Income Tax (1993); 
Rules for the Implementation of the Provisional Regulations of the People's Republic of China on 
Enterprise Income Tax (1994); 
MOF Circular Cai Shui Zi No.001 of 1994; State Council Circular Guo Fa No. 6 of 2006; 
MOF Circular Cai Shui No.88 of 2006; 
Law of the People's Republic of China on Enterprise Income Tax (2007); Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007.  6. Form of the subsidy 
 Preferential tax treatment.  
7. To whom and how the subsidy is provided 
 
For the enterprises recognized as high or new technology enterprises and established in the State 
high or new technology industrial development zones: 
1) The enterprise income tax shall be levied at a reduced rate of 15 %;  2) The enterprise income tax shall, starting from the year beginning production (starting from the year beginning to make profit since 1 January 2006), be exempted in the first and second years.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 11 - 
 
   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 Starting from 1 January 2008, enterprises regist ered before 16 March 2007 for their establishment 
which are eligible for the preferential treatment of 2 years of exemption from enterprise income 
tax may continue to enjoy the treatment till its expiration on them; among these enterprises, for 
those that have not started to enjoy the treatment due to the fact that they have not begun to 
make profit, the starting year for them to enjoy the treatment shall be 2008.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
6  PREFERENTIAL TAX POLICIES FOR HIGH OR NEW TECHNOLOGY ENTERPRISES 
1. Title of the subsidy programme 
 
Preferential tax policies for high or new technology enterprises. 
 2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To encourage high and new technology industrial development and enhance the technology progress. 
 
4. Background and authority for the subsidy 
 
MOF, SAT, MOST. 
 5. Legislation under which it is granted 
 Law of the People's Republic of China on Enterprise Income Tax (2007); Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007). 
 
6. Form of the subsidy 
 
Preferential tax treatment. 
 7. To whom and how the subsidy is provided 
 The enterprise income tax of the enterprises recognized as high or new technology enterprises shall be levied at a reduced rate of 15%.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January 2008 to the present.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 12 - 
 
  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  
7  PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN INVESTMENT 
ESTABLISHED IN SPECIAL ECONOMIC ZONE S (EXCLUDING SHANGHAI PUDONG AREA) 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment established in Special Economic Zones (excluding Shanghai Pudong area).   
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To absorb foreign investment and expand the open-up policy and enhance development of the 
areas.  4. Background and authority for the subsidy 
 MOF, SAT, MOFCOM, MOST.  
5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and 
Foreign Enterprises(1991); 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment  and Foreign Enterprises (1991); 
SAT Circular Guo Shui Fa No.139 of 1995; 
SAT Circular Guo Shui Fa No.135 of 2003; 
Law of the People's Republic of China on Enterprise Income Tax (2007); Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
State Council Circular Guo Fa No.39 of 2007; State Council Circular Guo Fa No.40 of 2007. 
 
6. Form of the subsidy 
 Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 
1) Starting from 1 January 2008, the enterprises with foreign investment established in Shenzhen, 
Zhuhai, Shantou, Xiamen and Hainan Special Economic Zones and foreign enterprises which have establishments or places in these Special Economic Zones engaged in production or business 
operations which were registered before 16 March 2007 for their establishment were given a 5 
year period to fulfil the transition from the tax rate of 15% to the new statutory tax rate of 25%, i.e., the applicable enterprise income tax rate was 18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011, and 25% in 2012; 
2) Starting from 1 January 2008, the income tax on enterprises with foreign investment of a 
production nature established in the old urban districts of cities where the above-mentioned zones are located and which are engaged in the following projects: (a) technology-intensive or 
knowledge-intensive projects, with major products  l i s t e d  i n  t h e  " C a t a l o g u e  o f  H i g h  a n d  N e w  
Technology Products of China" promulgated by MO ST and the sales revenue of these products of a 
year accounting for over 50 % of the total annual sa les revenue of the enterprise of that year; (b) 
projects with foreign investments of over US$30 million and having long periods for return on 
investment; and (c) energy resources, transportati on and port construction projects, which were 
registered before 16 March 2007 for their establishment were given a 5 year period to fulfil the transition from the tax rate of 15 % to the new statutory tax rate of 25 %, i.e., the applicable G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 13 - 
 
  enterprise income tax rate was 18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011, and 25% 
in 2012; 3) Enterprises with foreign investment established in the Hainan Special Economic Zones and engaged in infrastructure projects such as airports, harbours, docks, highways, railways, power 
stations, coal mines and water conservation projects, and enterprises with foreign investment 
engaged in the development of and operations in agriculture with an operation period of no less than fifteen years shall, starting from the year beginning to make profit, be exempted from 
enterprise income tax in the first year through the fifth years and allowed a tax reduction by half 
in the sixth year through the tenth year ("5 years of exemption and 5 years of reduction by half"); 4) Gains obtained in the Special Economic Zones by enterprises registered after 1 January 2008 for their establishment in Shenzhen, Zhuhai, Shantou, Xiamen and Hainan Special Economic Zones 
and recognized as high or new technology enterp rises shall, starting from the year receiving 
income from their operation or production, be ex empted from enterprise income tax in the first 
and second years and allowed a tax reduction by half from the statutory rate of 25% in the third 
year through the fifth year. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1)-2) 1 January 2008 to 2012; 
3)-4) 1 January 2008 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  8  PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN INVESTMENT 
ESTABLISHED IN THE COSTAL ECONOMIC OPEN AREAS AND IN THE ECONOMIC AND 
TECHNOLOGICAL DEVELOPMENT ZONES 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment established in the costal economic open areas and in the economic and technological development zones. 
 
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To absorb foreign investment and expand the open-up policy and enhance development of the 
areas.  
4. Background and authority for the subsidy 
 
MOF, SAT, MOFCOM, MOST.  
5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and 
Foreign Enterprises (1991); 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment  and Foreign Enterprises (1991); 
SAT Circular Guo Shui Fa No.139 of 1995; 
SAT Circular Guo Shui Fa No.135 of 2003; Law of the People's Republic of China on Enterprise Income Tax (2007); G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 14 - 
 
  Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); State Council Circular Guo Fa No.39 of 2007.  
6. Form of the subsidy 
 
Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 1) The income tax on enterprises with foreign investment of a production nature established in 
the economic and technological development zones shall be levied at the reduced rate of 15%;  
2) The income tax on the enterprises with foreign investment of a production nature established in the coastal economic open areas and in the old urban districts of cities where the 
economic and technological development zones are located and which are engaged in the following 
projects: (a) technology-intensive or knowledge-intensive projects, with major products listed in the "Catalogue of High and New Technology Prod ucts of China" promulgated by MOST and the 
sales revenue of these products of a year accounting for over 50% of the total annual sales 
revenue of the enterprise of that year; (b) projects with foreign investments of over US$30 million and having long periods for return on investment; and (c) energy resources, transportation and port construction projects, shall be levied at the reduced rate of 15%. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
Starting from 1 January 2008, enterprises regist ered before 16 March 2007 for their establishment 
and eligible under this program for the 15% enterpri se income tax rate were  given a 5 year period 
to fulfil the transition from the tax rate of 15% to the statutory enterprise income tax rate of 25%, 
i.e., the applicable enterprise income tax rate was 18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011, and 25% in 2012. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 9  PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN INVESTMENT ESTABLISHED IN PUDONG AREA OF SHANGHAI 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment established in Pudong area of 
Shanghai.  
 2. Period covered by the notification 
 2009-2014  3. Policy objective and/or purpose of the subsidy 
 To absorb foreign investment and expand the open-up policy and enhance development of the area. 
 
4. Background and authority for the subsidy 
 
MOF, SAT, MOFCOM. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 15 - 
 
  5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises (1991); 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment  and Foreign Enterprises (1991); 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); State Council Circular Guo Fa No.39 of 2007; State Council Circular Guo Fa No.40 of 2007. 
 
6. Form of the subsidy 
 
Preferential tax treatment.  
 7. To whom and how the subsidy is provided 
 1) The income tax on enterprises with foreign investment of a production nature established in Pudong area of Shanghai as well as enterprises with foreign investment engaged in energy resources and transport construction projects such as airport, ports, railways, highways and power 
stations shall be levied at the reduced rate of 15%. Enterprises with foreign investment engaged in 
energy resources and transport construction projec ts such as airport, ports, railways, highways 
and power stations with an operation period of no less than 15 years shall, starting from the year 
beginning to make profit, be exempted in the first year through the fifth year and allowed a 
reduction by half in the sixth year through the tenth year ("5 years of exemption and 5 years of reduction by half");  
2) Income obtained in Pudong area of Shangh ai by enterprises registered on and after 1 
January 2008 in Pudong area of Shanghai for thei r establishment which are recognized as high or 
new technology enterprises shall, starting from the year receiving income from their operation or production, be exempted from enterprise income tax in the first and second years and allowed a 
tax reduction by half from the statutory rate of 25% in the third year through the fifth year. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1) Starting from 1 January 2008, enterprises registered before 16 March 2007 for their 
establishment and eligible under this program for the 15% enterprise income tax rate were given a 
5 year period to fulfil the transition from the tax rate of 15% to the statutory enterprise income tax rate of 25%, i.e., the applicable enterprise income tax rate was 18% in 2008, 20% in 2009, 
22% in 2010, 24% in 2011, and 25% in 2012; enterprises eligible for the preferential treatment of 
"5 years of exemption and 5 years of reduction by half" may continue to enjoy the treatment till its expiration on them, among these enterprises, for those that have not started to enjoy the 
treatment due to the fact that they have not begu n to make profit, the starting year for them to 
enjoy the treatment shall be 2008;  2) 1 January 2008 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
10  PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN INVESTMENT ESTABLISHED IN THE THREE GORGES OF YANGTZE RIVER ECONOMIC ZONE 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises with foreign investment established in the Three Gorges of Yangtze River Economic Zone.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 16 - 
 
   
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To absorb foreign investment and expand the open-up policy and enhance development of the 
areas.   4. Background and authority for the subsidy 
 MOF, SAT, MOFCOM.  
5. Legislation under which it is granted 
 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); State Council Circular Guo Fa No.39 of 2007.  
6. Form of the subsidy 
 
Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 
1) The income tax on enterprises with foreign investment established in the Three Gorges of 
Yangtze River Economic Zone (note) which are engaged in energy resources, transportation, harbour and wharf projects or other projects encouraged by the State, shall be levied at the reduced rate of 15%; 
2) Among enterprises with foreign investment of a production nature established in the old urban 
districts of the open cities along the Yangtze Ri veretc, those engaged in technology-intensive or 
knowledge-intensive projects, or projects with foreign investments of over US$30 million and 
having long periods for return on investment, or energy resources, transportation and port 
construction projects shall be levied at the reduced rate of 15%. Note: The Three Gorges of Yangtze River Economic Zone refers to Yichang County, Zigui County 
and Xingshan County under the Yichang City of the Hubei Province, Badong County of the Enshi 
Tujia and Miao Autonomous Prefecture of Hubei Province, Wushan County, Wuxi County, Fengjie 
County, Yunyang County, Kai County and Zhong County under the Wanxian City of Sichuan Province, Shizhu County under the Qianjiang Prefecture, Fengdu County and Wulong County under 
the Fuling Prefecture of Sichuan Province, and Changshou County, Jiangbei County, Ba County and 
Jiangjin City under Chongqing City. Here the administrative division was that before the 
establishment of the Chongqing Municipality directly under the Central Government. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  9. Duration of the subsidy and/or any other time-limits attached to it 
 Starting from 1 January 2008, enterprises regist ered before 16 March 2007 for their establishment 
and eligible under this program for the 15% enterpri se income tax rate were  given a 5 year period 
to fulfil the transition from the tax rate of 15% to the statutory enterprise income tax rate of 25%, 
i.e., the applicable enterprise income tax rate was 18% in 2008, 20% in 2009, 22% in 2010, 24% in 2011, and 25% in 2012.  
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  11  PREFERENTIAL TAX POLICIES IN THE WESTERN REGIONS 
1. Title of the subsidy programme 
 
Preferential tax policies in the western regions.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To accelerate the development of the wester n regions, expand the opening up, lessen the 
imbalance of economic development among different areas and accelerate the development of the regions. 
 
4. Background and authority for the subsidy 
 
MOF, SAT, MOFCOM and other relevant authorities under the State Council. 
 5. Legislation under which it is granted 
 
State Council Circular Guo Fa No. 33 of 2000; 
General Office of State Council Circular Guo Ban Fa No. 73 of 2001; MOF Circular Cai Shui No. 202 of 2001; 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007; 
MOF Circular Cai Shui No.1 of 2008; MOF GAC SAT Announcement No.43 of 2008; MOF Circular Cai Shui No.58 of 2011; 
MOF Circular Cai Shui No.4 of 2013. 
 6. Form of the subsidy 
 Preferential tax treatment.   
7. To whom and how the subsidy is provided 
 
1) The income tax on enterprises established in the western regions (note) which have the items included in the Catalogue of Encouraged Industries in Central and Western Regions as their major 
business with the income from that major business accounting for over 70% of total revenue of 
the current year shall be levied at the reduced rate of 15% from the year 2001 to 2020. Before the publication of the Catalogue of Encouraged Industries in Central and Western Regions, qualified 
enterprises refer to those that have items as their major business included in the Catalogue for the 
Guidance of Industrial Restructuring (2005 Versio n and 2011 Version), Catalogue for the Guidance 
of the Foreign Investment Industries and Catalogue for the Guidance of the Advantageous 
Industries in Central and Western Regions for Foreign Investment, with the income from that 
major business accounting for over 70% of total revenue of the current year.  2) The domestic enterprises which are newly established in the western regions and engaged in business such as transportation, electric power,  water conservancy, postal service, radio and 
television etc, whose revenue from those business accounts for over 70% of total revenue shall, 
starting from the year beginning production or op eration, be exempted from the enterprise income 
tax in the first and second years and allowed a tax reduction by half in the third year through the 
fifth year. The foreign-invested enterprises of the same conditions as the above domestic ones and 
with an operation period of no less than 10 years shall, starting from the year beginning to make profit, enjoy the same preferential tax trea tment as the above domestic enterprises. 
3) The imported equipments for self use within the total amount of the capital invested by 
domestic enterprises established in the western regions and engaged in the encouraged industries or by foreign-invested enterprises established in the western regions and engaged in the encouraged or advantageous industries are exempted from tariff from 2001 to the present and G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 18 - 
 
  import VAT from 2001 to 31 December 2008, except for those listed in the Catalogue for the 
imported products not subject to tax exemption in foreign invested projects or in the Catalogue for the imported products not subject to tax exemption in domestic invested projects.  (Note: The western regions refer to Chongqing Municipality, Sichuan Province, Guizhou Province, 
Yunnan Province, Tibet Autonomous Region, Shaanxi Province, Gansu Province, Ningxia Hui 
Autonomous Region, Qinghai Province, Xinjiang Production and Construction Corps, Xinjiang Uygur Autonomous Region, Inner Mongolia Autonomous Region, Guangxi Zhuang Autonomous Region. 
Starting from 1 January 2011, Hunan Xiangxi Tu jia-Miao Autonomous Prefecture, Hubei Enshi 
Tujia-Miao Autonomous Prefecture and Jilin Yanbian Korean Autonomous Prefecture may enjoy the tax policies for the western regions. Starting fr om 1 January 2012, Ganzhou began to enjoy the 
preferential policies for the Development of the Western Regions.) 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1) 2001 to 2020;  2) From 2001 to the end of 2011, of the enterprises newly established before 31 December 2010 
which were engaged in business such as transportation, electric power, water conservancy, postal 
service and radio and television, those which had been examined and approved by tax authorities 
and are eligible for the preferential enterprise in come tax treatment of "2 years of exemption and 
3 years of reduction by half" may continue to enjoy the treatment till its expiration on them; those 
which were eligible for the original preferen tial tax treatment under the Policies for the 
Development of the Western Regions but had no t yet completed the examination and approval 
procedures by tax authorities before 31 December  2010 due to the fact that they have not begun 
to make revenue or entered the year of making  profit, may enjoy the treatment after fulfilling 
relevant procedures;  3) 2001 to the present. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 12  SPECIAL FISCAL FUND TO ALLEVIATE POVERTY 
1. Title of the subsidy programme 
 
Special fiscal fund to alleviate poverty.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To improve the production and living conditions and increase the income of the poverty stricken 
population, and to enhance the economic and social  development of the poverty stricken areas.  
 4. Background and authority for the subsidy 
 MOF, Office of Poverty Alleviation under the State Council, National Development and Reform 
Commission (NDRC).  
 
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.412 of 2011.  
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 19 - 
 
  6. Form of the subsidy 
 
Financial appropriations.   
7. To whom and how the subsidy is provided 
 
The funds are appropriated to local governments for arrangement according to the allocation 
programmes which are formulated upon estimation by MOF and other authorities and approved by 
the Leading Group for Poverty Alleviation of the State Council. The fund will be granted to individuals or other organizations engaged in crop farming, breeding, 
handicraft making and other industry with distinctive characteristics in the poverty stricken areas, 
for the purpose of improving the basic production and living conditions in poverty-stricken rural 
areas, increasing the capabilities to get employ ed and make production of the rural population 
receiving the help for alleviating poverty, and helping alleviate their shortage of productive capital. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
19,730 22,268 27,200 33,205 39,400 43,287 
 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1980 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 13  PREFERENTIAL TAX TREATMENT FOR PUBL IC INFRASTRUCTURE PROJECTS THAT ARE 
PARTICULARLY SUPPORTED BY THE STATE 
1. Title of the subsidy programme 
 
Preferential tax treatment for public infrastructure projects that are particularly supported by the 
State.  2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To promote the construction of infrastructure projects. 
 
4. Background and authority for the subsidy 
 MOF, SAT. 
 
5. Legislation under which it is granted 
 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
MOF Circular Cai Shui No.46 of 2008; 
MOF Circular Cai Shui No.10 of 2012.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 20 - 
 
  6. Form of the subsidy 
 
Preferential tax treatment.  
7. To whom and how the subsidy is provided 
 
Income derived by an enterprise from investment in and operation of public infrastructure projects 
such as harbours, wharves, airports, railways, highways, urban public transportation, electric 
power and water conservancy projects as specified in the Catalogue of Public Infrastructure Projects for Preferential Enterprise Income Tax Tr eatment shall, starting from the year receiving 
income from the projects' operation or production, be exempted from enterprise income tax in the 
first through the third years and allowed a tax reduction by half in the fourth year through the 
sixth year.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 
1 January 2008 to the present.  
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
14  PREFERENTIAL TAX TREATMENT FOR PROJECTS FOR ENVIRONMENTAL PROTECTION, 
WATER AND ENERGY CONSERVATION 
1. Title of the subsidy programme 
 
Preferential tax treatment for projects for environmental protection, water and energy 
conservation.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 To protect the environment and encourage the recycle of resources. 
 
4. Background and authority for the subsidy 
 
MOF, SAT. 
 5. Legislation under which it is granted 
 Law of the People's Republic of China on Enterprise Income Tax (2007); Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
MOF Circular Cai Shui No.48 of 2008; 
MOF Circular Cai Shui No.10 of 2012.  
6. Form of the subsidy 
 
Preferential tax treatment.  
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 21 - 
 
  7. To whom and how the subsidy is provided 
 
1) Income derived by an enterprise from the qu alified projects of environmental protection or 
energy and water conservation such as projects  of public sewage treatment, public refuse 
treatment, comprehensive development and utilization of methane, technological upgrading for 
energy conservation and discharge reduction, and se awater desalination etc. shall, starting from 
the year receiving income from the projects' operat ion or production, be exempted from enterprise 
income tax in the first year through the third year and allowed a tax reduction by half in the fourth 
year through the sixth year; 2) Where an enterprise purchases and actually uses the equipment specially designed for environmental protection, energy and water conservation, safe production etc. as specified in the 
Catalogue of Special Environmental Protection Eq uipment for Preferential Enterprise Income Tax 
Treatment, the Catalogue of Special Energy and Water Conservation Equipment for Preferential 
Enterprise Income Tax Treatment and the Catalogue of Special Safe Production Equipment for 
Preferential Enterprise Income Tax Treatment, 10% of its investment in the special equipment 
may be credited against its tax payable for the current year, and any amount that is not credited in that year may be carried forward and cr edited in the following five tax years. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January 2008 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  
15  PREFERENTIAL TAX TREATMENT FOR BU ILDING MATERIALS PR ODUCTS PRODUCED 
WITH INTEGRATED UTIL IZATION OF RESOURCES 
1. Title of the subsidy programme 
 
Preferential tax treatment for building materials products produced with integrated utilization of resources.  
 
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage the integrated utilization of  resources and protect the environment. 
 4. Background and authority for the subsidy 
 MOF, SAT.  5. Legislation under which it is granted 
 Law of the People's Republic of China on Enterprise Income Tax (2007); Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
MOF Circular Cai Shui No.47 of 2008.  
6. Form of the subsidy 
 
Preferential tax treatment.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 22 - 
 
  7. To whom and how the subsidy is provided 
 
If an enterprise uses the resources specified in the Catalogue of Comprehensive Use of Resources for Preferential Enterprise Income Tax Treatment as its main raw materials to manufacture 
products listed in the same Catalogue that meet relevant national and industrial standards, its 
income thus derived shall be included in the total taxable income of the enterprise at a reduced amount of 90%. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January 2008 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  
16  PREFERENTIAL TAX TREATMENT FOR BU ILDING MATERIALS PR ODUCTS PRODUCED 
WITH INTEGRATED UTIL IZATION OF RESOURCES 
1. Title of the subsidy programme 
 
Preferential tax treatment for building materials products produced with integrated utilization of resources.  
 
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage the integrated utilization of  resources and protect the environment. 
 4. Background and authority for the subsidy 
 MOF, SAT.  5. Legislation under which it is granted 
 MOF Circular Cai Shui Zi No. 156 of 2008; MOF Circular Cai Shui Zi No. 115 of 2011. 
 
6. Form of the subsidy 
 
Preferential tax treatment. 
 7. To whom and how the subsidy is provided 
 
1) The VAT on recycled water, rubber powder whic h is made of junked tires entirely, retreads, 
special building materials products which contain no less than 30% waste residues in raw materials shall be exempted;  
2) The VAT on building gravel aggregates which have building (structure) wastes and gangues as 
raw materials shall be exempted;  3 )  5 0 %  o f  t h e  V A T  o n  s o m e  p a r t s  o f  n e w - t y p e  w a l l  m a t e r i a l  p r o d u c t s  s h a l l  b e  r e f u n d e d  u p o n  
collection. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 23 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1) 1 January 2009 to the present; 
2) 1 August 2011 to the present; 3) 1 July 2008 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
17  PREFERENTIAL TAX TREATMENT FOR PRODUCTS PRODUCED WITH INTEGRATED UTILIZATION OF RESOURCES 
1. Title of the subsidy programme 
 
Preferential tax treatment for products produced with integrated utilization of resources.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage integrated utilization of resources and protect the environment.  
 4. Background and authority for the subsidy 
 
MOF, SAT. 
 5. Legislation under which it is granted 
 MOF Circular Cai Shui No. 156 of 2008; MOF Circular Cai Shui No. 56 of 2008; 
MOF Circular Cai Shui No. 163 of 2009; 
MOF Circular Cai Shui No. 115 of 2011.  6. Form of the subsidy 
 Preferential tax treatment.   
7. To whom and how the subsidy is provided 
 
1) The VAT on high-purity carbon dioxide products which are made from industrial waste gases, 
electricity or heat generated from wastes (including biogas from waste fermentation), shale oils 
which are made from oil shale as a kind of waste associated with coal mining, recycled asphalt concrete which are made from waste asphalt conc rete, cement (including cement clinker) which 
are made by rotary kiln process or cement made by grinding purchased cement clinker shall be 
fully refunded upon collection; 
2) The VAT on electricity and heat generated from waste heat or excess pressure associated with industrial production; electricity, heat and fuels made from raw materials such as kitchen wastes, 
livestock excrements, rice husk, peanut hull, corncob, oil-tea camellia shell, cottonseed hull, three 
remains, shoddy and little fuelwood, oily sewage, organic wastewater, sludge from wastewater treatment, oily sludge (dross) from oil field production as well as the biogas from the fermentation 
of the above items; dry sludge and fuels made from  the sludge associated with sewage treatment; 
feed-grade mixed oil made from waste animal oil and vegetable oil; industrial oils such as lubricant 
base oil, gasoline and diesel which are made from reclaimed used mineral oils; emulsified oil G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  blender, waterproof roll and other accessories made from the oily sludge (dross) associated with 
oil field production; and wigs made from human hair shall be fully refunded upon collection; 3) The VAT on nitro-cotton powder coating made from retired military propellant; by products from desulfuration of exhaust gas and high-sulfur natural gas associated with coal-fired power plants 
and various industrial plants; steam, activated carbon, white carbon black, lactic acid, calcium 
lactate and biogas which are made from waste distiller grains and waste brewing water; electricity and heat generated from gangue, coal slime, stone coal and oil shale; and electricity generated 
from wind power shall be ref unded by 50% upon collection; 
4) The VAT on aluminium oxide and active calcium silicate which are made from coal ash and gangue; microbial proteins made from sludge; porcelain insulator and calcined kaolin made from gangue; gold, sliver, palladium, rhodium, copper, lead, mercury, tin, bismuth, tellurium, indium, 
selenium and platinum group metals made from waste batteries, waste photosensitive materials, 
waste colour developing solutions, dead cataly sts, waste bulbs (tubes), electrolyzed wastes, 
electroplated wastes, waste circuit boards, resin wastes, smoke-dust, wet mud, smelted residues, 
river bottom sludge, waste motors and scraped cars; gasoline, diesel, waste plastic (rubber) oil, 
petroleum coke, carbon black, recycled pulp, aluminite powder, modified materials special for automobiles, modified materials special for motorcycles, modified materials special for household 
electronic appliance, modified materials special for pipes and tubes, recycled polyester materials 
special for chemical fibre (containing less than 0.5mg/g impurities and less than 1% water), recycled polyethylene terephthalate (PET) resin special for bottles (of which the mass fraction of acetaldehyde is equal to or less than 1ug/g) an d recycled plastic products; fibre yarn, weaving 
cotton, non-woven fabrics, felts, adhesives and recycled polyester products which are made from 
waste natural fibre, chemical fibre and their products; and graphite alien pieces, graphite blocks, graphite powder and graphite carburant which are made from waste graphite shall be refunded by 
50% upon collection; 
5) The VAT on comprehensive use of bio-diesels shall be refunded after collection.  6) The VAT on organic fertilizers shall be exempted. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 1) and 3) 1 July 2008 to the present; 2) and 4) 1 August 2011 to the present; 
5) 1 July 2008 to the present; 
6) 1 June 2008 to the present.  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
18  PREFERENTIAL VAT ON COMPREHENSIVELY UTILIZED PRODUCTS WITH 
AGRICULTURAL SURPLUS AND FOREST RY RESIDUES AS RAW MATERIALS 
1. Title of the subsidy programme 
 
Preferential VAT on comprehensively utilized products with agricultural surplus and forestry residues as raw materials.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To promoting integrated utilization of resources and protect environment. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 25 - 
 
  4. Background and authority for the subsidy 
 
MOF, SAT.  
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 148 of 2009; 
MOF Circular Cai Shui No. 114 of 2010; 
MOF Circular Cai Shui No. 115 of 2011.  6. Form of the subsidy 
 Preferential tax treatment.  
7. To whom and how the subsidy is provided 
 
1) The VAT on wood (bamboo, straw crops) fi breboard, wood (bamboo, straw crops) shaving 
board, blockboard, active carbon, tannin extract,  hydrolytic alcohol and carbon rod which are 
made from raw materials such as the three remains, shoddy and little fuelwood, and crop straws; and cardboard paper made from salix mongolica; shall be refunded upon collection (The tax refund proportion was 100% in 2009, and 80% from 2010 to the present); 
2) The VAT on bagasse pulp, bagasse particle board, and various kinds of paper products which 
are made from bagasse shall be refunded upon collection. (The tax refund proportion was 100% in 2009, 80% in 2010, and 50% from 2011 to the present.) 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  9. Duration of the subsidy and/or any other time-limits attached to it 
 2009 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
19  PREFERENTIAL CONSUMPTION TAX ON COMPREHENSIVELY UTILIZED AND PRODUCED PETROLEUM PRODUCTS 
1. Title of the subsidy programme 
 
Preferential consumption tax on comprehensively utilized and produced petroleum products.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 To promote integrated utilization of resources and protect environment. 
 
4. Background and authority for the subsidy 
 
MOF, SAT. 
 5. Legislation under which it is granted 
 MOF Circular Cai Shui No. 118 of 2010; MOF Circular Cai Guan Shui No. 79 of 2013; MOF Circular Cai Shui No. 105 of 2013. G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 26 - 
 
   
6. Form of the subsidy 
 Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 
1) The consumption tax on the pure biodiesel produced in accordance with the national standard of 
Biodiesel Blend Stock (BD100) for Diesel Engine Fuels and from raw materials of which the amount of the waste animal oil and vegetable oil is no less than 70% shall be exempted;  2) The consumption tax on the imported biodie sel and biodiesel blend meeting the national 
standard of Biodiesel Bend Stock (BD100) for Diesel Engine Fuels shall be exempted; 
3) The consumption tax on industrial oils such as lubricant base oil, gasoline and diesel which are 
made from reclaimed used mineral oils shall be exempted. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January 2009 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
20  PREFERENTIAL VAT ON ELECTRICAL PRODUCTS PRODUCED BY PHOTOVOLTAIC-GENERATED POWER 
1. Title of the subsidy programme 
 
Preferential VAT on electrical products produced by photovoltaic-generated power.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 To encourage the use of solar energy to generate electricity and protect environment. 
 
4. Background and authority for the subsidy 
 
MOF, SAT. 
 5. Legislation under which it is granted 
 MOF Circular Cai Shui No. 66 of 2013.  6. Form of the subsidy 
 Preferential tax treatment.  
7. To whom and how the subsidy is provided 
 
50% of the VAT on the electrical products prod uced by solar energy shall be refunded upon 
collection. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 27 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1 October 2013 to 31 December 2015. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 21  PREFERENTIAL VAT ON HYDROPOWER PRODUCTS 
1. Title of the subsidy programme 
 
Preferential VAT on hydropower products. 
 
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage the use of clean energy to generate electricity and protect environment. 
 4. Background and authority for the subsidy 
 MOF, SAT.  5. Legislation under which it is granted 
 MOF Circular Cai Shui No. 10 of 2014.  
6. Form of the subsidy 
 
Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 For hydroelectric power stations with installed capacity exceeding one million KW (including 
pumped-storage power stations) selling self-produced electrical power products:  
1) The portion in the actual VAT tax burden that  exceeds 8% shall be refunded upon collection 
from 1 January 2013 to 31 December 2015; 
2) The portion in the actual VAT tax burden that exceeds 12% shall be refunded upon collection 
from 1 January 2016 to 31 December 2017%.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
From 1 January 2013 to 31 December 2017. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 28 - 
 
  22  PREFERENTIAL TAX TREATMENT FOR ENERGY-SAVING AND NEW ENERGY VEHICLES 
AND VESSELS 
1. Title of the subsidy programme 
 
Preferential tax treatment for energy-sav ing and new energy vehicles and vessels. 
 2. Period covered by the notification 
 2009-2014  3. Policy objective and/or purpose of the subsidy 
 To promote utilization of energy-saving and ne w energy products and protect environment. 
 
4. Background and authority for the subsidy 
 
MOF, SAT, MIIT. 
 
5. Legislation under which it is granted 
 MOF, SAT and MIIT Announcement No. 53 of 2014;  
Vehicle and Vessel Tax Law; 
Interim Regulation of the Vehicle and Vessel Tax Law.   
6. Form of the subsidy 
 
Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 1) The vehicle and vessel tax on the energy-savin g vehicles and vessels conform to the standards 
shall be allowed a reduction by half; 
2) The vehicle and vessel tax on the new energy vehicles and vessels conform to the standards shall be exempted;  
3) The vehicle purchase tax on the new energy vehicles that are listed in the Catalogue of the 
Models of New Energy Vehicles Exempted from Vehicle Purchase Tax shall be exempted.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1)-2) From 1 January 2012 to the present; 
3) From 1 September 2014 to 31 December 2017.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  
23  PREFERENTIAL TAX TREATMENT FOR THE PUBLIC BUSES AND TROLLEYBUSES 
PURCHASED BY URBAN PUBLIC TRANSPORTATION ENTERPRISES 
1. Title of the subsidy programme 
 
Preferential tax treatment for the public buse s and trolleybuses purchased by urban public 
transportation enterprises. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 29 - 
 
  2. Period covered by the notification 
 
2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To alleviate the burden of urban public transpor tation enterprises, and promote the healthy and 
stable development of road transportation industry. 
 4. Background and authority for the subsidy 
 
MOF, SAT. 
 5. Legislation under which it is granted 
 MOF Circular Cai Shui No. 51 of 2012.  
6. Form of the subsidy 
 
Preferential tax treatment.  
7. To whom and how the subsidy is provided 
 
The vehicle purchase tax on the public buses and trolleybuses purchased by urban public 
transportation enterprises shall be exempted.  
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
From 1 January 2012 to 31 December 2015. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 24  PREFERENTIAL VEHICLE PURCHASE TAX ON LOW-EMISSION CARS 
1. Title of the subsidy programme 
 
Preferential vehicle purchase tax on low-emission cars.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 To promote energy-saving and environmental protection. 
 
4. Background and authority for the subsidy 
 
MOF, SAT. 
 5. Legislation under which it is granted 
 MOF Circular Cai Shui No. 12 of 2009; MOF Circular Cai Shui No. 154 of 2009.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 30 - 
 
  6. Form of the subsidy 
 
Preferential tax treatment.  
7. To whom and how the subsidy is provided 
 
For purchased passenger cars with an engine capacity of no more than 1.6 litres: 
1) The vehicle purchase tax shall be levied at a reduced rate of 5%; 
2) The vehicle purchase tax shall be levied at a reduced rate of 7.5%.  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1) 20 January to 31 December 2009; 
2) 1 January to 31 December 2010.  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
25  SPECIAL FUND FOR THE INDUSTRIALIZATION OF WIND POWER EQUIPMENT 
1. Title of the subsidy programme 
 
Special fund for the industrialization of wind power equipment.  
 2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To promote the research and development of wind  power industry and use of renewable energy. 
 
4. Background and authority for the subsidy 
 
MOF.  
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No.476 of 2008; 
MOF Decree No.62 of 2011. 
 6. Form of the subsidy 
 Financial appropriations.  7. To whom and how the subsidy is provided 
 The fund is provided for the research and develo pment of wind power equipment of domestic or 
domestically controlled enterprises manufacturing equipment and components for the wind power 
industry. The first 50 sets of megawatt wind turbines and their components newly developed and 
industrialized may receive the support as per RMB 600/kilowatt, and half of the support is 
respectively provided to the manufacturers of turbines and key components.  
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 31 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
285 Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
August 2008 to the end of 2009. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
26  PREFERENTIAL TAX POLICIES FOR CLEAN DEVELOPMENT MECHANISM 
1. Title of the subsidy programme 
 
Preferential tax policies for Clean Development Mechanism.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To reduce the emission of greenhouse gas (GHG).  4. Background and authority for the subsidy 
 MOF, SAT.  
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No.30 of 2009. 
 
6. Form of the subsidy 
 Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 
1) Specified income derived by the China Clean Development Mechanism Fund (CDMFUND) 
which are listed in the Circular shall be exempted from enterprise income tax;  2) The portion of income derived from the tran sfer of greenhouse gas emission reductions by 
CDM project enterprises which are paid to the state shall be deducted from the taxable income; 
3) The enterprise income tax on CDM project enterprises that implement HPC and PFC projects where 65% of income derived from the transfer of  greenhouse gas emission reductions are paid to 
the state, and N20 projects where 30% of income  derived from the transfer of greenhouse gas 
emission reductions are paid to the state shall, starting from the year receiving income from the 
transfer of greenhouse gas emission reductions, be  exempted in the first year through the third 
year and allowed a tax reduction by half in the fourth year through the six year. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 32 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
1 January 2007 to the present.   
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
27  PREFERENTIAL TAX POLICIES FOR ENTERPRISES MAKING LITTLE PROFITS 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises making little profits.  
 2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To reduce the burden of the enterprises making little profits and to maintain job opportunities.  
4. Background and authority for the subsidy 
 
MOF, SAT. 
 
5. Legislation under which it is granted 
 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); MOF Circular Cai Shui No.33 of 2009; 
MOF Circular Cai Shui No.117 of 2011; 
MOF Circular Cai Shui No.34 of 2014.  
6. Form of the subsidy 
 
Preferential tax treatment.  
 
7. To whom and how the subsidy is provided 
 1) The income tax on the enterprises engaged in industries which are not restricted or prohibited 
by the State and meeting the following conditions shall be levied at a reduced rate of 20%; 
a) industrial enterprises whose annual taxable income does not exceed RMB 300,000, the number 
of employees does not exceed 100 persons, and th e total value of assets does not exceed RMB 30 
million; or b) other enterprises whose annual taxable income does not exceed RMB 300,000 Yuan, 
the number of employees does not exceed 80 pers ons, and the total value of assets does not 
exceed RMB 10 million; 
2) 50% of the income of the enterprises listed in item 1) which have an annual taxable income of 
no more than RMB 30,000 shall be deducted from their taxable income and their enterprise income tax shall be levied at a rate of 20%; 3) 50% of the income of the enterprises listed in item 1) which have an annual taxable income of 
no more than RMB 60,000 shall be deducted from their taxable income and their enterprise income 
tax shall be levied at a rate of 20%; 4) 50% of the income of the enterprises listed in item 1) which have an annual taxable income of 
no more than RMB 100,000 shall be deducted from their taxable income and their enterprise 
income tax shall be levied at a rate of 20%.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 33 - 
 
   
9. Duration of the subsidy and/or any other time-limits attached to it 
 1) 1 January 2008 to the present; 
2) 1 January 2010 to the present; 
3) 1 January 2012 to the present; 4) 1 January 2014 to the present. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available. 
 
28  PREFERENTIAL VAT POLICIES FOR ENTERPRISES THAT EMPLOY DISABLED PEOPLE 
1. Title of the subsidy programme 
 
Preferential VAT policies for enterprises that employ disabled people.   
2. Period covered by the notification 
 
2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To encourage the increase of job opportunities an d help the employment of the disabled people. 
 
4. Background and authority for the subsidy 
 
MOF, Ministry for Civil Affairs (MCA), SAT. 
 5. Legislation under which it is granted 
 
MOF Circular Cai Shui No.92 of 2007. 
 6. Form of the subsidy 
 Preferential tax treatment.  
7. To whom and how the subsidy is provided 
 
The VAT paid by the enterprises that employ disabled people may be refunded upon collection. The amount of VAT refunded depends on the number of  disabled people the enterprises employ. For 
each disabled person employed, the enterprise may enjoy VAT refund equalling to six times the 
minimum wage set for a specific region annually, with the maximum refund of RMB 35,000 per person per year. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  9. Duration of the subsidy and/or any other time-limits attached to it 
 1 July 2007 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 34 - 
 
  29  PREFERENTIAL INCOME TAX POLICIES FOR ENTERPRISES THAT EMPLOY DISABLED 
PEOPLE 
1. Title of the subsidy programme 
 
Preferential income tax policies for enterprises that employ disabled people.  
 2. Period covered by the notification 
 2009-2014  3. Policy objective and/or purpose of the subsidy 
 To encourage the increase of job opportunities an d help the employment of the disabled people. 
 
4. Background and authority for the subsidy 
 
MOF, MCA, SAT. 
 
5. Legislation under which it is granted 
 MOF Circular Cai Shui No.92 of 2007; 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
MOF Circular Cai Shui No.70 of 2009. 
 6. Form of the subsidy 
 Preferential tax treatment.   7. To whom and how the subsidy is provided 
 100% of the wages paid to its disabled employees by a qualified enterprise shall be additionally 
calculated and deducted from its taxable income. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  9. Duration of the subsidy and/or any other time-limits attached to it 
 1 July 2007 to the present, and 1 January 2008 to the present for foreign invested enterprises.   
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
30  PREFERENTIAL TAX TREATMENT FOR IMPORTED PRODUCTS EXCLUSIVELY USED BY THE DISABLED PEOPLE 
1. Title of the subsidy programme 
 
Preferential tax treatment for imported products exclusively used by the disabled people.   
2. Period covered by the notification 
 
2009-2014 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 35 - 
 
  3. Policy objective and/or purpose of the subsidy 
 
To facilitate the recovery of the disabled people.  
4. Background and authority for the subsidy 
 
MOF, General Administration of Customs (GAC). 
 
5. Legislation under which it is granted 
 State Council Circular Guo Han No. 3 of 1997; 
GAC Decree No. 61 of 1997; 
Provisional Regulations of the PRC on Value-Added Tax (2008 Revision).  
6. Form of the subsidy 
 
Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 The tariff, import VAT and consumption tax on imported products exclusively used by the disabled 
people within the stipulated scope shall be exempted.  
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1997 to the present.  
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 31  PREFERENTIAL TAX TREATMENT FOR PRODUCTS FOR THE DISABLED PEOPLE 
1. Title of the subsidy programme 
 
Preferential tax treatment for products for the disabled people.   
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To facilitate the recovery of the disabled people. 
 4. Background and authority for the subsidy 
 
MOF, SAT. 
 5. Legislation under which it is granted 
 MOF Circular Cai Shui No. 60 of 1994.  
6. Form of the subsidy 
 
Preferential tax treatment.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 36 - 
 
  7. To whom and how the subsidy is provided 
 
The VAT on artificial limbs, wheelchairs, orthopaedic appliances including those for upper limbs, lower limbs and spinal bend and lean etc. shall be exempted.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  9. Duration of the subsidy and/or any other time-limits attached to it 
 1994 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
32  PREFERENTIAL TAX TREATMENT FOR ENTERPRISES PRODUCING PRODUCTS EXCLUSIVELY USED BY THE DISABLED PEOPLE 
1. Title of the subsidy programme 
 
Preferential tax treatment for enterprises producing products exclusively used by the disabled people.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To facilitate the recovery of the disabled people. 
 4. Background and authority for the subsidy 
 MOF, MCA, SAT.  
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No.132 of 2004; MOF Circular Cai Shui No.148 of 2006; 
MOF Circular Cai Shui No.1 of 2008; 
MOF Circular Cai Shui No.131 of 2009; MOF Circular Cai Shui No.81 of 2011. 
 
6. Form of the subsidy 
 
Preferential tax treatment.  
 7. To whom and how the subsidy is provided 
 
The income tax on enterprises producing or assembling products to be exclusively used by the 
disabled people shall be exempted.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 37 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
2004 to the end of 2015.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
33  PREFERENTIAL TAX POLICIES FOR THE RESEARCH AND DEVELOPMENT OF ENTERPRISES 
1. Title of the subsidy programme 
 
Preferential tax policies for the research and development of enterprises.   
2. Period covered by the notification 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage the research and development of enterprises.  
4. Background and authority for the subsidy 
 
MOF, SAT. 
 
5. Legislation under which it is granted 
 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); SAT Circular Guo Shui Fa No.116 of 2008. 
 
6. Form of the subsidy 
 
Preferential tax treatment.  
 7. To whom and how the subsidy is provided 
 Where the research and development expenses incu rred by an enterprise for the development of 
new technologies, new products and new techniques are included in the current profits or losses before they become intangible assets, a dedu ction of 50 % of the research and development 
expenses shall be made in addition to the deduction of actual expenses when the taxable income is 
calculated; where they become intangible assets, the expenses shall be amortised at 150% of the 
cost of the intangible assets with the amortization period of not less than 10 years. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January 2008 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 38 - 
 
  34  PREFERENTIAL TAX POLICIES FOR ENTERPRISES TRANSFERRING TECHNOLOGY 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises transferring technology.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To encourage the transfers of technology. 
 4. Background and authority for the subsidy 
 MOF, SAT.  
5. Legislation under which it is granted 
Law of the People's Republic of China on Enterprise Income Tax(2007); 
Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
SAT Circular Guo Shui Han No.212 of 2009. 
 6. Form of the subsidy 
 Preferential tax treatment.   
7. To whom and how the subsidy is provided 
 
Income up to RMB 5 million earned by a resident en terprise from any transfer of technologies in a 
tax year shall be exempted from enterprise income tax. Income exceeding RMB 5 million shall be 
allowed a reduction by half of enterprise income tax. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January 2008 to the present. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 35  RESEARCH AND DEVELOPMENT FUND FOR INDUSTRIAL TECHNOLOGIES 
1. Title of the subsidy programme 
 
Research and development fund for industrial technologies.   
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To support important technological research and development projects of commonweal or public 
interest.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 39 - 
 
  4. Background and authority for the subsidy 
 
MOF, NDRC.  
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No.30 of 2002. 
 
6. Form of the subsidy 
 Financial appropriations.  
 
7. To whom and how the subsidy is provided 
 
The fund is provided to enterprises engaged in approved research and development projects of 
industrial technologies after review of applications or bidding procedures.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
3,262 3,506 4,202 4,024 4,407 4,433 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 2002 to the present.  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
36  DEVELOPMENT FUND FOR SMES 
1. Title of the subsidy programme 
 
Development fund for SMEs.  
 2. Period covered by the notification 
 
2009-2014. 
 3. Policy objective and/or purpose of the subsidy 
 To support the development of SMEs and to improve the development environment of SMEs. 
 
4. Background and authority for the subsidy 
 
MOF, MIIT, MOST, MOFCOM.  
5. Legislation under which it is granted 
 
Law of the People's Republic of China on Promotion of Small and Medium-sized Enterprises; 
MOF Circular Cai qi No.185 of 2004; 
MOF Circular Cai qi No.226 of 2006; 
MOF Circular Cai qi No.179 of 2008 ; 
MOF Circular Cai qi No.97 of 2012; 
MOF Circular Cai qi No.38 of 2014.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 40 - 
 
  6. Form of the subsidy 
 
Financial appropriations.  
7. To whom and how the subsidy is provided 
 
Grants and investment incentives for medium and small enterprises, specifically: 
1) Grants will be provided to the innovation projects of science and technology SMEs for no more 
than 40% of the relevant R&D expenditures with the grant per innovation project limited to RMB 3 million;  2) Support in the forms of share-holding during certain operation stage, risk-based allowance and 
investment guarantee, etc. will be granted to  venture capital institutions and science and 
technology SME start-ups;  3) Grants, performance incentives and governmental purchase services, etc. will be adopted to 
support SME public service platforms and service in stitutions so that they could provide science 
and technology consultation, commerce and trade and other comprehensive services to SMEs.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
4,920 9,020 9,820 10,820 11,598 11,586 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1999 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  37  SPECIAL FUND FOR ESTABLISHMENT OF SERVICE SYSTEM FOR SMES 
1. Title of the subsidy programme 
 
Special fund for establishment of service system for SMEs. 
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To assist entities to provide better services to SMEs. 
 4. Background and authority for the subsidy 
 MOF, MIIT.  
5. Legislation under which it is granted 
 
Law of the People's Republic of China on Promotion of Small and Medium-sized Enterprises; MOF Circular Cai Jian No.124 of 2004. 
 
6. Form of the subsidy 
 
Financial appropriations.  
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 41 - 
 
  7. To whom and how the subsidy is provided 
 
The fund is provided as grant to entities which provide services to SMEs. For those who provide training services to the SMEs, rent charges of training venue, payments to the lecturers and 
expenses on teaching materials may be fully subsidized by the fund, and accommodations incurred 
by the training services may be subsidized at a maximum of RMB 150 person/day. For those who provide credit services to SMEs, the actual expenses may be subsidized as appropriate. For those 
who provide services for SMEs to start business, the actual expenses may be subsidized as 
appropriate. For those who provide management consulting services for SMEs, the actual expenses may be subsidized as appropriate.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
50 50 50 50 Not Applicable Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 2003-2012.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
38  FUND FOR PROMOTION OF COORDINATED DEVELOPMENT OF FOREIGN TRADE AND ECONOMIC RELATIONS AMONG REGIONS 
1. Title of the subsidy programme 
 
Fund for promotion of coordinated development of foreign trade and economic relations among regions.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To support the economic and trade development of undeveloped area. 
 4. Background and authority for the subsidy 
 MOF, MOFCOM.  
5. Legislation under which it is granted 
 
MOF Circular Cai Qi No.118 of 2008; MOF Circular Cai Qi No.36 of 2014. 
 
6. Form of the subsidy 
 
Financial appropriations.  
 7. To whom and how the subsidy is provided 
 This fund is provided for projects aiming at exploration of international market, scientific innovation and information system construction in the central, western and north-eastern regions of China. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 42 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
1,700 1,800 2,200 2,300 2,394 Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2000-2013. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
39  SPECIAL FUND FOR THE DEVELOPMENT OF INTERNATIONAL ECONOMY AND TRADE 
1. Title of the subsidy programme 
 
Special fund for the development of international economy and trade. 
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To optimize the structure of international trade, promote international investment cooperation, and improve public services for international economy and trade.  
4. Background and authority for the subsidy 
 
MOF, MOFCOM. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Qi No. 36 of 2014. 
 6. Form of the subsidy 
 
Financial appropriations. 
 7. To whom and how the subsidy is provided 
 For eligible enterprises and institutions that 1) Are located in areas where international economy and trade are less developed; or 
2) Develop trade in services and trade in technology; or 
3) Conduct overseas investment, contract foreign projects, engage in foreign labour cooperation, 
and other foreign investment and cooperation business; or 4) Import advanced equipment and technology, key parts and components, and resource products 
urgently needed domestically; or 
5) Provide investment cooperation promotion and public business information and other services.  The Ministry of Commerce and the Ministry of Financ e organize the filing and review of application 
for projects, and propose fund-supporting plans; the Ministry of Finance is responsible for 
approving fund-supporting plans, and allocating the fund directly or via the provincial-level 
financial departments to the institutions responsible for the projects.  
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 43 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable 12,750 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2014 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
40  FUND FOR OPTIMIZING THE IMPORT AN D EXPORT STRUCTURE OF MECHANICAL AND 
ELECTRICAL PRODUCTS AS WELL AS HIGH-TECH PRODUCTS 
1. Title of the subsidy programme 
 
Fund for optimizing the import and export structure of mechanical and electrical products as well 
as high-tech products.   
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 To support the optimization of the import and export structure of mechanical and electrical 
products as well as high-tech products. 
 4. Background and authority for the subsidy 
 MOF, MOFCOM.  
5. Legislation under which it is granted 
 
MOFCOM Circular Shang Cai Fa No.291 of 2007; MOFCOM Announcement No.109 of 2010. 
 
6. Form of the subsidy 
 
Financial appropriations.  
 7. To whom and how the subsidy is provided 
 The fund is provided for enterprises or industrial associations engaged in projects of technology research and development, public information service and personnel training etc. The amount of support shall not exceed 50 % of the total actual investment in the projects. Support to a single 
enterprise shall not exceed RMB 3 million and that for intermediary organizations shall not exceed 
RMB 10 million in principle.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
111.8  Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 44 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
2007-2009.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
41  FUND FOR PROMOTING THE TRADE OF AGRICULTURAL, LIGHT INDUSTRY AND TEXTILE PRODUCTS 
1. Title of the subsidy programme 
 
Fund for promoting the trade of agricultural, light industry and textile products.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 To improve the quality and safety of agricultural, light industry and textiles products. 
 
4. Background and authority for the subsidy 
 
MOF, MOFCOM. 
 5. Legislation under which it is granted 
 MOFCOM Circular Shang Gui Fa No.507 of 2005; MOFCOM Announcement No.109 of 2010.  
6. Form of the subsidy 
 
Financial appropriations.  
 
7. To whom and how the subsidy is provided 
 
The fund is provided for projects promoting the development of quality system certification, 
registration of marks of origin and the training  and exchange of new technology, new design and 
new marketing concepts.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
100 Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2005-2009. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 45 - 
 
  42  PREFERENTIAL TAX POLICIES FOR ENTERPRISES ENGAGED IN PROJECTS OF 
PRELIMINARY PROCESSING OF AGRICULTURAL, FOREST, ANIMAL AND FISHERY PRODUCTS 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises engaged in projects of preliminary processing of agricultural, forest, animal and fishery products.  
 
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To support the development of agriculture.  
 4. Background and authority for the subsidy 
 MOF, SAT.  5. Legislation under which it is granted 
 Law of the People's Republic of China on Enterprise Income Tax(2007); Regulations for the Implementation of Law of the Pe ople's Republic of China on Enterprise Income 
Tax (2007); 
MOF Circular Cai Shui No.149 of 2008.  
6. Form of the subsidy 
 
Preferential tax treatment.   
7. To whom and how the subsidy is provided 
 
Enterprise income tax on the income derived by an enterprise from stipulated projects of 
preliminary processing related to farming, forestry, animal husbandry and fisheries may be 
exempted or reduced.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2008 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  43  FUND FOR SPECIALIZED ECONOMIC COOPERATIVES OF FARMERS 
1. Title of the subsidy programme 
 
Fund for specialized economic cooperatives of farmers.  
 
2. Period covered by the notification 
 
2009-2014 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 46 - 
 
  3. Policy objective and/or purpose of the subsidy 
 
To support and facilitate the development of specialized cooperatives of farmers.  
4. Background and authority for the subsidy 
 
MOF. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.87 of 2004 ; 
MOF Circular Cai Nong No.156 of 2013. 
 
6. Form of the subsidy 
 
Financial appropriations.  
 
7. To whom and how the subsidy is provided 
 The fund is provided to qualified specialized cooperatives of farmers. MOF provides fund to the 
local governments. Local governments review applicat ions to allocate the fund and then report to 
MOF for record.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
500 600 700 850 1,850 2,000.40 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 2003 to the present.  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
44  FUND FOR SUBSIDIZIN G THE TRAINING OF RURA L MIGRANT LABOUR FORCE 
1. Title of the subsidy programme 
 
Fund for subsidizing the training of rural migrant labour force.  
 2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To improve the quality and the employment capabilit ies of the rural migrant workers, to facilitate 
the migration of the rural labour force and increase rural incomes. 
 
4. Background and authority for the subsidy 
 MOF, Ministry of Agriculture (MOA). 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.18 of 2005. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 47 - 
 
  6. Form of the subsidy 
 
Financial appropriations.   
7. To whom and how the subsidy is provided 
 
The fund is provided to individuals, training institutions or other organizations chosen through 
bidding procedures to provide training services to farmers. MOF and MOA jointly review 
applications for fund submitted by local governments. After approval of the applications, fund is allocated by MOF.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
1,100 1,100 1,100 1,100 1,100 1,100 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 2004 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
45  SUBSIDY FUND FOR TRANSFORMING AGRI CULTURAL SCIENTIF IC ACHIEVEMENTS 
AND PROMOTING TECHNICAL SERVICES 
1. Title of the subsidy programme 
 
Subsidy fund for transforming agricultural scientific achievements and promoting technical services.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To supporting the transformation of agricultural scientific achievements, the promotion of 
agricultural technologies and services.  
4. Background and authority for the subsidy 
 
MOF, MOST, MOA. 
 
5. Legislation under which it is granted 
 MOST Circular Guo Ke Ban Cai Zi No. 417 of 2001; 
MOF Circulars Cai Nong No. 81 of 2004; 
MOF Circulars Cai Nong No. 31 of 2014.  
6. Form of the subsidy 
 
Financial appropriations. 
 
7. To whom and how the subsidy is provided 
 The fund is provided to the undertakers responsi ble for the projects of transforming scientific 
achievements and promoting agricultural scientifi c services, providers of agricultural scientific G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 48 - 
 
  promotion services and practical users of agricultural technologies. MOF and MOA jointly review 
applications for fund submitted by local governments. After approval of the applications, fund is allocated by MOF.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
4,070 5,400 6,100 10,100  10,907.60 12,353.90 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1999 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  
46  SUBSIDY FOR PROMOTING SUPERIOR STRAINS AND SEEDS 
1. Title of the subsidy programme 
 
Subsidy for promoting superior strains and seeds. 
 2. Period covered by the notification 
 2009-2014  3. Policy objective and/or purpose of the subsidy 
 To accelerate the upgrading of strains and seeds,  increase the output of agricultural products, 
improve the quality of agricultural pr oducts and guarantee food security. 
 
4. Background and authority for the subsidy 
 
MOF, MOA. 
 5. Legislation under which it is granted 
 
MOF Circulars Cai Nong No.16 and No.17 of 2004; 
MOF Circulars Cai Nong No.440 of 2009.  
6. Form of the subsidy 
 
Financial appropriations.  
 
7. To whom and how the subsidy is provided 
 The subsidy is provided to farmers purchasing superior strains and seeds. MOF and MOA jointly 
review applications for fund submitted by local governments. After approval of the applications, 
fund is allocated by MOF.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
19,854.31 20,400 21,948.47 21,902.53 21,584.87 21,445.39 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 49 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
2002-2014.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
47  SUBSIDY FOR PURCHASING AGRICULTURAL MACHINERY AND TOOLS 
1. Title of the subsidy programme 
 
Subsidy for purchasing agricultural machinery and tools.  
 2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To enhance agricultural mechanization, and push forward the development of agriculture and rural economy. 
 
4. Background and authority for the subsidy 
 
MOA, MOF. 
 5. Legislation under which it is granted 
 MOF Circular Cai Nong No.11 of 2005.  6. Form of the subsidy 
 Financial appropriations.  
7. To whom and how the subsidy is provided 
 
The subsidy is provided to individual farmers or services providers of agricultural machinery and 
tools that purchase agricultural machinery and tools. MOA and MOF jointly review applications for 
fund submitted by local governments. After approval  of the applications, fund is allocated by MOF. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
12,890 15,493 17,500 21,500  21,754.80 23,644.80 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1999 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
48  COMPREHENSIVE SUBSIDIES FOR AGRICULTURAL INPUTS 
1. Title of the subsidy programme 
 
Comprehensive subsidies for agricultural inputs.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 50 - 
 
   
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To compensate farmers' loss caused by the price hi kes of agricultural inputs, and improve farmers' 
income.  4. Background and authority for the subsidy 
 MOF.  
5. Legislation under which it is granted 
 
General Office of the State Council Circular Guo Ban Fa No.16 of 2006; 
MOF Circular Cai Jian No.1 of 2009. 
 6. Form of the subsidy 
 
Financial appropriations.  
 7. To whom and how the subsidy is provided 
 The fund is allocated to provincial governments, which are responsible for the formulation of detailed implementation plans and provision of the subsidy to farmers. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
71,600 71,600 83,500 107,800 107,800 107,800 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2006-2014.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
49  DIRECT SUBSIDY TO FARMERS 
1. Title of the subsidy programme 
 
Direct subsidy to farmers.   2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To maintain the stability and development of agricultural production, improve the overall 
agricultural production capacity and farmers' income. 
 4. Background and authority for the subsidy 
 
MOF. G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 51 - 
 
   
5. Legislation under which it is granted 
 State Council Circular Guo Fa No.17 of 2004. 
 
6. Form of the subsidy 
 
Financial appropriations. 
 7. To whom and how the subsidy is provided 
 
Provincial governments are responsible for the deta iled implementation plan. Fund will be provided 
according to the taxable area of the farmland.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
15,100 15,100 15,100 15,100 15,100 15,100 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 2004-2014.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  
50  FUND FOR AGRICULTURAL COMPREHENSIVE DEVELOPMENT 
1. Title of the subsidy programme 
 
Fund for agricultural comprehensive development.  
 2. Period covered by the notification 
 2009-2014  3. Policy objective and/or purpose of the subsidy 
 To improve the infrastructure construction and ecological construction, enhance the agricultural comprehensive production capacity, optimize the agricultural and rural economic structure and 
improve farmers' income. 
 4. Background and authority for the subsidy 
 MOF.  5. Legislation under which it is granted 
 MOF Decree No.60.  
6. Form of the subsidy 
 
Financial appropriations.  
 
7. To whom and how the subsidy is provided 
 The fund is provided to agricultural comprehensive development projects, which will be subsidized 
after approval of the applications. G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 52 - 
 
   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
16,500 19,000 23,000 29,000 32,852 36,071 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1988 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
51  FUND FOR INTEREST DISCOUNT OF LOANS FOR THE PURPOSE OF AGRICULTURAL WATER-SAVING IRRIGATION 
1. Title of the subsidy programme 
 
Fund for interest discount of loans for the purpose of agricultural water-saving irrigation.   
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 To support water-saving irrigation technology and the construction of areas using water-saving 
irrigation.  
 4. Background and authority for the subsidy 
 MOF, Ministry of Water Resources (MWR).  
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No. 279 of 2005.   
6. Form of the subsidy 
 
Financial appropriations.  
 
7. To whom and how the subsidy is provided 
 
The fund is provided to individuals, enterprise s or related organizations. MOF and MWR jointly 
review the applications for fund submitted by  local governments. After approval of the 
applications, fund is allocated by the MOF.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
49.9 50 50 Not Applicable Not Applicable Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1997-2011.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 53 - 
 
  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  
52  SUBSIDY FUND FOR SMALL FARMLAND WATER CONSERVANCY FACILITIES AND 
NATIONAL KEY CONSTRUCTION PROJECTS ON WATER AND SOIL CONSERVATION 
1. Title of the subsidy programme 
 
Subsidy fund for small farmland water conservancy facilities and national key construction projects on water and soil conservation.  
2. Period covered by the notification 
 
2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To assist small scale farmland irrigation and water and soil conservation in rural areas. 
 4. Background and authority for the subsidy 
 
MOF, MWR. 
 5. Legislation under which it is granted 
 MOF Circular Cai Nong Zi No. 335 of 2009; MOF Circular Cai Nong Zi No. 54 of 2012. 
 
6. Form of the subsidy 
 Financial appropriations.  
 
7. To whom and how the subsidy is provided 
 
The fund is provided to farm households, farmers' cooperation organizations for using water, 
village groups and village collectives and other specialized farmers' economic partnerships and projects of treating water loss and soil erosion in key areas. 
The funds for small-sized farmland water conservancy facilities will be distributed based on a factor 
approach. The central government will determine the allocation of capital grants to each province according to the budget scale of fund and relevant  factors. The special funds for water and soil 
conservation projects will be allocated by MOF after the MOF and MWR jointly review and approved 
the applications submitted by the local authorities. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
4,730 8,100 13,000 22,308 19,308 23,108 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1983 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 54 - 
 
  53  FUND FOR DISASTER PREVENTION AND RELIEF IN AGRICULTURAL PRODUCTION 
1. Title of the subsidy programme 
 
Fund for disaster prevention and relief in agricultural production. 
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To reducing the damages caused by agricultural disasters. 
 4. Background and authority for the subsidy 
 MOF, MOA.  
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No. 232 of 2001; MOF Circular Cai Nong No. 3 of 2013. 
 
6. Form of the subsidy 
 
Financial appropriations. 
 7. To whom and how the subsidy is provided 
 MOF and the MOA jointly review the applications for fund submitted by the local governments. 
After the applications are approved, the subsidy is allocated by the MOF. The fund is provided to 
agricultural producers who undertake the tasks of pr eventing and controlling agricultural disasters, 
and suffer from the damages and losses caused by agricultural disasters. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
925 3,282 4,130 4,805 4,220 3,227 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 2001 to the present. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 54  SUBSIDY FOR PREVENTION FROM AND CONTROL OF PEST AND DISEASE IN 
FORESTRY 
1. Title of the subsidy programme 
 
Subsidy for prevention from and control of pest and disease in forestry.  
 
2. Period covered by the notification 
 
2009-2014 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 55 - 
 
  3. Policy objective and/or purpose of the subsidy 
 
To strengthen the disease, pest and rat preventi on and control in forests, woods, seedling and 
bamboo forests. 
 
4. Background and authority for the subsidy 
 
MOF, State Forestry Administration (SFA). 
 5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.44 of 2005. 
 6. Form of the subsidy 
 Financial appropriations.   
7. To whom and how the subsidy is provided 
 
The fund is provided to the grass-root entities engaged in forestry hazardous creature control. 
MOF and SFA jointly review the applications for fund submitted by the local governments and 
determine the amount of the allowance. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
200 200 200 200 200 200 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1980 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  55  SUBSIDY FUND FOR AGRICULTURAL RESOURCES AND ECOLOGICAL PROTECTION 
1. Title of the subsidy programme 
 
Subsidy fund for agricultural resources and ecological protection. 
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To supporting the protection and quality improvemen t of cultivated land, protection and control of 
grassland ecology, protection and utilization of the resources of fishing industry, and comprehensive treatment of fecal residue from livestock. 
 
4. Background and authority for the subsidy 
 
MOF, MOA. 
 5. Legislation under which it is granted 
 
MOF Circular Cai Nong No. 139 of 2004; G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 56 - 
 
  MOF Circular Cai Nong No. 32 of 2014. 
 6. Form of the subsidy 
 
Financial appropriations. 
 7. To whom and how the subsidy is provided 
 For eligible herdsmen, fishermen and relevant enterprises, specifically: 1) Subsidies on farmers' income loss during the period of farmland pollution and product monitoring, soil amelioration fertilization agent (f ertilizer), special fertilizer, straw rotten agent, 
acacia crassicarpa and seed of green manure crop s necessary for farmland protection and quality 
improvement, new crop variety, change in farming conditions and repair and treatment of polluted cultivated land necessary for planting structure adjustment etc.; 
2) Subsidies on prohibition of grazing on grassl and necessary for grassland ecological protection 
and treatment, reward for balance between forage and animal, integrated subsidies on herdsmen's production materials, performance incentives, subs idies on growing superior grass seed varieties, 
subsidies on air-seeding grass etc.; 
3) Subsidies on aquatic organisms multiplication release, ocean pasture construction, reduction in the number of fishing vessels and change of fishermen's production necessary for the protection and utilization of fishery resources; 
4) Subsidies on construction of major facilities and procurement of equipment necessary for 
comprehensive treatment of fecal residue from livestock; 5) Other expenses in connection with agricultural resources and ecological protection. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
1,764.73 1,893.98 13,728.00 15,428.00 16,375.00 18,315.40 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1984 to the present. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available. 
 
56  PREFERENTIAL TAX POLICIES FOR THE IMPORTS OF CHINA GRAIN RESERVES CORPORATION 
1. Title of the subsidy programme 
 
Preferential tax policies for the imports of China Grain Reserves Corporation. 
 
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To secure food safety. 
 4. Background and authority for the subsidy 
 MOF, GAC, SAT.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 57 - 
 
  5. Legislation under which it is granted 
 
MOF Circular Cai Guan Shui No.16 of 2011; MOF Circular Cai Guan Shui No.33 of 2011. 
 
6. Form of the subsidy 
 
Preferential tax treatment.  
 7. To whom and how the subsidy is provided 
 
The import VAT on Grains and oils owned by China Grain Reserves Corporation and its subsidiaries 
for the purpose of rotation of grain reserves shall be exempted.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 
2009 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
57  PREFERENTIAL TAX TREATMENT FOR TEA SOLD IN THE BORDER AREAS 
1. Title of the subsidy programme 
 
Preferential tax treatment for tea sold in the border areas.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To reduce the costs of ethnic minorities living in border areas to purchase border-selling tea, and ensure the sufficient supply of border-selling tea at the border areas inhabited by ethnic minorities. 
 
4. Background and authority for the subsidy 
 
MOF, SAT. 
 5. Legislation under which it is granted 
 MOF Circular Cai Shui No. 60 of 1994; MOF Circular Cai Shui No. 71 of 2001; MOF Circular Cai Shui No. 103 of 2006; 
MOF Circular Cai Shui No. 141 of 2009; 
MOF Circular Cai Shui No. 89 of 2011;  
6. Form of the subsidy 
 
Preferential tax treatment.  
 
7. To whom and how the subsidy is provided 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 58 - 
 
  The VAT on the border-selling tea sold and manuf actured by its manufacturers and distributed by 
its distributors shall be exempted.  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January1994 to the end of 2015. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 58  PREFERENTIAL TAX TREATMENT FOR IMPORTED PRODUCTS FOR THE PURPOSE OF 
REPLACING THE PLANTING OF POPPIES 
1. Title of the subsidy programme 
 
Preferential tax treatment for imported products  for the purpose of replacing the planting of 
poppies. 
 2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To support the replacement of the planting of poppies.  
4. Background and authority for the subsidy 
 
MOF, SAT, GAC. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No.63 of 2000. 
 6. Form of the subsidy 
 
Preferential tax treatment. 
 7. To whom and how the subsidy is provided 
 Tariffs and import VAT on imported products within the approved scope for the purpose of replacing the planting of poppies in the border  areas in Yunnan province shall be exempted.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January 2000 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 59 - 
 
  59  PREFERENTIAL TAX POLICIES ON IMPORTS OF SEEDS (SEEDLINGS), BREEDING 
STOCK (FOWL), FISH FRIES (BREEDS) AND WILD ANIMALS AND PLANTS KEPT AS BREEDS DURING THE PERIOD OF THE "ELEVENTH FIVE-YEAR PLAN" AND "TWELVETH FIVE-YEAR PLAN" 
1. Title of the subsidy programme 
 
Preferential tax policies on imports of seeds (seedl ings), breeding stock (fowl), fish fries (breeds) 
and wild animals and plants kept as breeds during  the period of the "Eleventh Five-Year Plan" and 
"Twelfth Five-Year Plan".   2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To introduce and promote improved breeds, to stre ngthen the protection of species resources, and 
to develop high-quality, productive and effi cient agriculture and forestry industries. 
 4. Background and authority for the subsidy 
 
MOF, GAC, MOF. 
 5. Legislation under which it is granted 
 MOF Circular Cai Guan Shui No.3 of 2006; MOF Circular Cai Guan Shui No.9 of 2011. 
 
6. Form of the subsidy 
 Preferential tax treatment. 
 
7. To whom and how the subsidy is provided 
 
The import VAT on imported seeds (seedlings), breeding stock (fowl), fish fries (breeds) and wild 
animals and plants kept as breeds which are within the approved quantity and scope shall be exempted.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 2006 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 60 - 
 
  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 
1. Title of the subsidy programme 
 
Preferential tax treatment for endangered wild animals and plants as well as their products 
returned by foreign governments, by the governme nt of Hong Kong SAR, China or the government 
of Macao SAR, China to China.   2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To facilitate the implementation of the Convention  on International Trade in Endangered Species of 
Wild Fauna and Flora and to protect wild animals and plants. 
 4. Background and authority for the subsidy 
 
MOF, GAC, SFA. 
 5. Legislation under which it is granted 
 MOF Circular Cai Shui No.8 of 2003.  
6. Form of the subsidy 
 
Preferential tax treatment.   
7. To whom and how the subsidy is provided 
 
Tariff and import VAT on the endangered wild animals and plants as well as their products which 
are listed in the appendix to the Convention on International Trade in Endangered Species of Wild 
Fauna and Flora, returned by foreign governments,  by the government of Hong Kong SAR, China, 
or by the government of Macao SAR, China to the Office of the Administration of Import and 
Export of Endangered Species under the SFA shall be exempted. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available.  
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1 January 2002 to the present. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available. 
 
61  PREFERENTIAL TAX TREATMENT FOR IMPORT OF EQUIPMENTS 
1. Title of the subsidy programme 
 
Preferential tax treatment for import of equipments.  
2. Period covered by the notification 
 
2009-2014 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 61 - 
 
   
3. Policy objective and/or purpose of the subsidy 
 To attract foreign investment, to encourage domestic investment and to stimulate structural 
adjustment and industrial upgrading. 
 4. Background and authority for the subsidy 
 MOF, SAT, GAC.  5. Legislation under which it is granted 
 MOF, GAC, SAT Announcement No.43 of 2008.  
6. Form of the subsidy 
 
Preferential tax treatment.  
 
7. To whom and how the subsidy is provided 
 Tariff on the equipments imported for self use by domestically and foreign-invested projects 
encouraged by the State pursuant to Circular of the State Council on the Adjustment of Taxation 
Policies for Imported Equipments (Guo Fa [1997] No. 37); imported for the projects using loans provided by foreign governments or international financial organizations, and non-priced 
equipment imported from foreign processing merchants shall be exempted within the originally 
prescribed scope.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1998 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  62  SUBSIDY FOR SCRAPPING OLD VEHICLES 
1. Title of the subsidy programme 
 
Subsidy for scrapping old vehicles.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To encourage people to replace their old vehicles. 
 4. Background and authority for the subsidy 
 MOF, MOFCOM.  
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No.742 of 2002; MOF Circular Cai Jian No.183 of 2013; G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 62 - 
 
  MOF Circular Cai Jian No.654 of 2014. 
 6. Form of the subsidy 
 
Financial appropriations.  
 7. To whom and how the subsidy is provided 
 Eligible old car owners of may be subsidized when scrapping their old vehicles.   8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
300 300 300 300 300 300 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2002 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
63  PREFERENTIAL CONSUMPTION TAX ON REFINED OIL 
1. Title of the subsidy programme 
 
Preferential consumption tax on refined oil. 
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To facilitate the sound development of olefin chemical industry and fair competition among enterprises producing like products.  
4. Background and authority for the subsidy 
 
MOF, SAT. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 19 of 2008; 
MOF Circular Cai Shui No. 168 of 2008; MOF Circular Cai Shui No. 66 of 2010; MOF Circular Cai Shui No. 87 of 2011. 
 
6. Form of the subsidy 
 
Preferential tax treatment. 
 7. To whom and how the subsidy is provided 
 1) The consumption tax on imported and domestic naphtha used for raw materials of ethylene and aromatic products shall be exempted; 2) The consumption tax on imported and domestic fuel oil used for raw materials of ethylene and 
aromatic products and other chemical products shall be exempted; G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 63 - 
 
  3) From 1 January 2010 to 31 December 2010, the consumption tax on domestic fuel oil used for 
raw materials of ethylene and aromatic products and other chemical products shall be exempted, 
while the consumption tax on the imported fuel oil used for the raw materials of ethylene and aromatic products and other chemical products shall be returned; 
4) From 1 October 2011, the consumption tax will be reimposed on the enterprises producing 
naphtha and fuel oil (hereinafter referred to as th e production enterprises) which sell naphtha and 
fuel oil used for producing ethylene and aromatic hydrocarbon chemical products; the consumption 
tax on the production enterprises producing ethyle ne and aromatic hydrocarbon chemical products 
by using self-produced naphtha and fuel oil shall be temporarily exempted according to the actual 
consumption quantity; for the consumption tax on the enterprises which produce ethylene and aromatic products by using naphtha and fuel oil purchase and use the same to produce the 
ethylene and aromatic hydrocarbon chemical products shall be temporarily returned according to 
the actual consumption quantity. From 1 January  to 30 September 2011, the consumption tax on 
the production enterprises selling naphtha and fuel oil to other enterprises to produce ethylene and 
aromatic hydrocarbon chemical products shall still be exempted according to the provisions of 
relevant documents. From 1 January to 30 September 2011, the consumption tax on the enterprises purchasing naphtha and fuel oil whose prices include the consumption tax to produce 
ethylene and aromatic hydrocarbon chemical products shall be returned according to relevant 
stipulations.  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
From 1 January 2008 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 64  PREFERENTIAL TAX POLICIES FOR INTEGRATED CIRCUIT INDUSTRY 
1. Title of the subsidy programme 
 
Preferential tax policies for integrated circuit industry.  
 
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage the development of integrated circuit industry. 
 4. Background and authority for the subsidy 
 MOF, SAT.  5. Legislation under which it is granted 
 MOF Decree No.62 of 2001; MOF Circular Cai Shui No.70 of 2002; 
MOF Circular Cai Shui No.136 of 2002; 
MOF Circular Cai Shui No.152 of 2002; MOF Circular Cai Guan Shui No.45 of 2004; 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
MOF Circular Cai Shui No.1 of 2008; MOF GAC SAT Announcement No.43 of 2008; State Council Circular Guo Fa No.4 of 2011; G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 64 - 
 
  MOF Circular Cai Shui No.27 of 2012; 
MOF Circular Cai Shui No.6 of 2015.  6. Form of the subsidy 
 Preferential tax treatment.   
7. To whom and how the subsidy is provided 
 
1) The enterprise income tax on an investor of an integrated circuit producing or packaging enterprise who reinvests its share of profit obtain ed from the enterprise after paying income tax, 
directly into that enterprises to increase its registered capital, or uses the profit as capital 
investment to establish other integrated circuit producing or packaging enterprises with an operating period of no less than 5 years, shall be  refunded at a rate of 40 % of the income tax 
already paid on their invested amount. 
2) The enterprise income tax on a domestic or foreign economic entity who uses its share of profit obtained inside China after paying the income tax as capital investment to establish integrated 
circuit producing or packaging enterprises in the western regions with an operating period of no 
less than 5 years, shall be refunded at a rate of 80 % of the income tax already paid on the reinvested amount. 3) The integrated circuit producing enterprises with investment of more than RMB 8 billion or 
producing integrated circuit with a line width less than 0.25 um shall enjoy the same preferential 
tax treatment as that to encourage foreign investment in energy and transportation sectors before 2008, i.e. enterprise income tax shall be levied at the reduced rate of 15%. Enterprises 
with an operating period of no less than 15 years shall, starting from the year beginning to make 
profit, be exempted from enterprise income tax in  the first year through the fifth year and allowed 
a tax reduction by half in the sixth year through the tenth year (5 years of exemption and 5 years 
of reduction by half).  
4) The specified imported raw materials and consumables for self production from 1 July 2000 and the specified special building materials, and parts and components of integrated circuit 
manufacturing equipments from 1 January 2001 by the integrated circuit producing enterprises 
with investment of more than RMB 8 billion or producing integrated circuit with a line width less 
than 0.25 um shall be exempted from tariff fr om 1 January 2001 to the present and from import 
VAT from 1 January 2001 to 31 December 2008. 
5) The income tax on the recognized integrated circuit producing enterprises producing integrated 
circuit with a line width less than 0.8 um shall, st arting from the year beginning to make profit, be 
exempted from in the first and second years and allowed a tax reduction by half in the third year 
through the fifth year (2 years of exemption and 3 years of reduction by half).  
6) The specified imported raw materials and consumables for self production from 1 October 2004 by the integrated circuit producing enterprises producing integrated circuit with a line width less than 0.25 um shall be exempted from tariff from  1 October 2004 to the present and from import 
VAT from 1 October 2004 to 31 December 2008. 
7) Imported technology and complete production units of integrated circuit, and separately imported special equipment and apparatus for integrated circuit by the recognized integrated 
circuit producing enterprises shall be exempted from tariff from 1 July 2000 to the present, and 
from import VAT from 1 July 2000 to 31 December 2008, except for those listed in the Catalogue for the imported products not subject to tax exemption in foreign invested projects or in the 
Catalogue for the imported products not subject to tax exemption in domestic invested projects. 
8) The depreciation period for manufacturing equipment of integrated circuit producing enterprises may be appropriately shortened upon approval, with the shortest depreciation period of 2 to 3 years. 
9) The eligible integrated circuit packaging and testing enterprises, the enterprises manufacturing 
the key special-purpose materials for integrated circuits, and the enterprises manufacturing the key equipments for integrated circuits shall, star ting from the year beginning to make profit, be 
exempted from the enterprise income tax in the first and second years and allowed a reduction by 
half in the third year through the fifth years till its expiration on them. Among these enterprises, for those that have not started to enjoy the treatment due to the fact that they have made no 
profit before 2017, the starting year for them to enjoy the treatment shall be 2017 till its 
expiration on them.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 65 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Not available. 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1) 1 January 2008 to the end of 2010;  
2) 1 January 2008 to the end of 2010;  3) 1 January 2008 to the present; 4) 1July 2000 to the present, or 1 January 2001 to the present; 
5) 2008 to the present; 
6) 1 October 2004 to the present; 7) 1July 2000 to the present;  
8) 1 January 2008 to the present; 
9) 1 July 2014 to the present.  
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available. 
 
65  FUND FOR RESEARCH AND DEVELOPMENT OF INTEGRATED CIRCUIT INDUSTRY 
1. Title of the subsidy programme 
 
Fund for research and development of integrated circuit industry.   
2. Period covered by the notification 
 
2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To support the research and development of integrated circuit industry. 
 
4. Background and authority for the subsidy 
 
MOF, NDRC, MIIT. 
 5. Legislation under which it is granted 
 
MOF Circular Cai Jian No.132 of 2005. 
 6. Form of the subsidy 
 Financial appropriations.   
7. To whom and how the subsidy is provided 
 
Grants are provided to eligible projects of enterprises which are independent legal persons engaged in the design, manufacturing, packaging or testing of integrated circuits and registered 
within the territory of the People's Republic of China (excluding Hong Kong, China; Macao, China 
and Chinese Taipei). The amount of aid to a si ngle research and development project shall not 
exceed 50 % of the cost of such an R&D activity.  
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 66 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
400 450 450 450 400 450 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
June 2005 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
66  FUND FOR THE DEVELOPMENT OF ELECTRICAL INFORMATION INDUSTRY 
1. Title of the subsidy programme 
 
Fund for the development of electrical information industry.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To support research and development activities of the electrical information industry.  4. Background and authority for the subsidy 
 MOF, MIIT.  
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No.425 of 2001; 
MOF Circular Cai Jian No.866 of 2007. 
 6. Form of the subsidy 
 
Financial appropriations.  
 7. To whom and how the subsidy is provided 
 This fund is provided in the form of grants, interest discounts or venture capital investment to project undertakers identified after application review or bidding procedures.  
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
762 800 800 835 785 835 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1986 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 67 - 
 
   
67  FUND FOR HIGH TECHNOLOGY R&D FOR PACKAGING INDUSTRY 
1. Title of the subsidy programme 
 
Fund for high technology R&D for packaging industry.  
 2. Period covered by the notification 
 2009-2014  3. Policy objective and/or purpose of the subsidy 
 To support the research and development activi ties of packaging industry, and promote the 
development of recycling economy and green packaging. 
 
4. Background and authority for the subsidy 
 
MOF. 
 5. Legislation under which it is granted 
 
MOF Circular Cai Qi No.107 of 2005; 
MOF Circular Cai Qi No.154 of 2008.  
6. Form of the subsidy 
 
Financial appropriations.  
 
7. To whom and how the subsidy is provided 
 The fund is provided in the form of grants and interest discounts to eligible enterprises with 
projects identified upon application filing and re view by experts. The amount of aid to a single 
project shall not exceed RMB 5 million or the capi tal invested by the enterprises themselves. The 
period for each project to enjoy interest discount shall be no more than 2 years and the total 
amount of interest discount that each project receives shall be no more than RMB 5 million. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
30 50 100 120 0 0 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2005 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 68  SUBSIDY FUND FOR JINTAIYANG (G OLDEN SUN) DEMONSTRATION PROJECT 
1. Title of the subsidy programme 
 
Subsidy fund for Jintaiyang (Golden Sun) Demonstration Project. 
 
2. Period covered by the notification 
 2009-2014 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 68 - 
 
   
3. Policy objective and/or purpose of the subsidy 
 To promote the use of renewable energy and preserve the ecological environment. 
 
4. Background and authority for the subsidy 
 
MOF, MOST, National Energy Administration (NEA) 
 5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 397 of 2009; 
State Council Circular Guo Fa No. 24 of 2013.  
6. Form of the subsidy 
 
Financial appropriations. 
 
7. To whom and how the subsidy is provided 
 The demonstration projects of photovoltaic power generation which are eligible for the fund 
include: 
(1) The demonstration projects of user side-grid- connected photovoltaic power generation built by 
using the existing conditions of large industrial and mining, commercial enterprises and public 
welfare entities; 
(2) The demonstration projects of photovoltaic, wind-solar complementary and water-solar complementary power generation for the purposes of improving power supply capacity of remote 
areas and supplying electricity to the population having no access to electricity; 
(3) The demonstration projects of large grid-conne ction photovoltaic power generation constructed 
in the areas with rich solar energy resources; (4) The industrialization of key technologies in photovoltaic power generation, including silicon 
material purification, controlling inverter, grid-connected operation and etc.; 
(5) Fundamental capacity building of photovoltaic power generation, including solar energy resources evaluation, establishment of standards and norms for photovoltaic power generation 
products and grid-connected technology, construction of testing and certification systems and etc.. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
1,859.42 3,943.58 5,307.62 10,975.19 Not Applicable Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2009-2012 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 69  SUBSIDY FUND FOR ENERGY-O RIENTED UTILIZATION OF STRAW 
1. Title of the subsidy programme 
 
Subsidy fund for energy-oriented utilization of straw. 
 
2. Period covered by the notification 
 2009-2014 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 69 - 
 
  3. Policy objective and/or purpose of the subsidy 
 
To facilitate the energy-oriented utilization of straw and save energy.  
4. Background and authority for the subsidy 
 
MOF. 
 
5. Legislation under which it is granted 
 MOF Circular Cai Jian No. 237 of 2006; 
MOF Circular Cai Jian No. 735 of 2008; 
MOF Circular Cai Jian No. 87 of 2015.  
6. Form of the subsidy 
 
Financial appropriations. 
 
7. To whom and how the subsidy is provided 
 Grants are provided to the eligible enterprises which are engaged in the straw energy-oriented 
production including straw briquetting fuel, straw gasification and straw carbonization by the 
central finance according to the types and quantity of consumed straw which are converted from the types and quantity of annually actually sold st raw energy products by the enterprises for each 
year. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
138.81 230.87 270.56 213.43 Not Applicable Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
November 2008 to 2013. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 70  SUBSIDY FUND FOR BIO-ENERGY AN D BIOCHEMICAL RAW MATERIALS BASES 
1. Title of the subsidy programme 
 
Subsidy fund for bio-energy and biochemical raw materials bases. 
 
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To guarantee the development of bio-energy an d the supply of biochemical raw materials, and 
make sure that the development of bio-energy an d biochemical industry will not occupy the land 
for grain. 
 
4. Background and authority for the subsidy 
 MOF. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 70 - 
 
  5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 435 of 2007; MOF Circular Cai Jian No. 87 of 2015. 
 
6. Form of the subsidy 
 
Financial appropriations. 
 7. To whom and how the subsidy is provided 
 
The eligible bio-energy and biochemical raw materi als bases conducting the following activities are 
eligible for the fund: 1) Productive outlays related to raw materials bases including seeds (sprout) breeding, planting, 
tending management, land levelling etc.; 
2) Management costs related to raw materials bases including for technical guidance, project acceptance, supervision and inspection , program review and approval etc.; 
3) Other expenses related to bio-energy and biochemical industry approved by MOF. 
The specific subsidy standards are as follows: The subsidy standard for raw material base of fo restry is RMB 200/mu and the amount of subsidy 
shall be checked and verified by MOF based on such standard and the verified implementation 
plans of raw material bases; 
In principle, the subsidy standard for raw material base of agriculture is RMB 180 /mu, and the specific standard will be determined according to different types of land such as saline and alkaline 
land and sandy bad lands; the amount of subsidy shall be checked and verified by MOF based on 
specific standard and the verified implementation plans of raw material bases.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
102.06 58.30 30.21 125.70 0 0 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 September 2007 to the present.  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
71  INCENTIVE FUND FOR NON-GRAIN GU IDED BIO-ENERGY AND BIOCHEMICAL 
INDUSTRY 
1. Title of the subsidy programme 
 
Incentive fund for non-grain guided bio-energy and biochemical industry.  2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To support the bio-energy and biochemical industry with non-grain raw materials to expand 
production, optimize production processes and promote the sound development of bio-energy and 
biochemical industry.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 71 - 
 
  4. Background and authority for the subsidy 
 
MOF.  
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 282 of 2007; 
MOF Circular Cai Jian No. 87 of 2015. 
 6. Form of the subsidy 
 
Financial appropriations. 
 7. To whom and how the subsidy is provided 
 The eligible enterprises which are engaged in the following projects may apply for interest discount during the period of construction and rewards af ter the construction is completed and the project 
are put into production: 
1) Expanded production demonstration of ethyl alcohol produced by straw wood-like fibre; 2) Expanded production demonstration of ethyl alcohol produced by sorgho; 3) Further technical innovation and optimized pr oduction process demonstration of ethyl alcohol 
produced by potatoes;  
4) Expanded production demonstration of biodiesel with the fruit of trees as raw materials; 5) Co-production and expanded production demons tration of biochemical industry and bio-energy, 
which extends the processing chain and increases industrial added value; 
6) Other optimized process or expanded production demonstrations of bio-energy and biochemical industry with non-grain as raw mate rials which are approved by MOF. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
90.24 59.40 29.45 110.21 0 0 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
July 2007 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
72  INCENTIVE FUND FOR TRANSFORMAT ION OF ENERGY-SAVING TECHNOLOGY 
1. Title of the subsidy programme 
 
Incentive fund for transformation of energy-saving technology.  2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To encourage the enterprises to save energy consumption through technical transformation. 
 
4. Background and authority for the subsidy 
 MOF, NDRC. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 72 - 
 
  5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 371 of 2007; MOF Circular Cai Jian No. 367 of 2011; 
MOF Circular Cai Jian No. 161 of 2015. 
 6. Form of the subsidy 
 Financial appropriations.  7. To whom and how the subsidy is provided 
 The enterprises which implement the transformation  of energy-saving technology are eligible for 
the incentives based on the amount of energy saved and specified standard. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
355.37 4,172.77 4,162.34 864.74 429.65 Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2007-2013 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available. 
 
73  PROMOTION FUND FOR EFFI CIENT LIGHTING PRODUCTS 
1. Title of the subsidy programme 
 
Promotion fund for efficient lighting products.  
2. Period covered by the notification 
 
2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To support the promotion and applicat ion of efficient lighting products. 
 
4. Background and authority for the subsidy 
 
MOF, NDRC. 
 5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 1027 of 2007. 
 6. Form of the subsidy 
 Financial appropriations.  
7. To whom and how the subsidy is provided 
 
Grants are provided to the bid-winning enterprises by MOF, the enterprises may sell the efficient lighting products at the price from the supply price in the bid-winning agreement deducted by the 
financial subsidies. G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 73 - 
 
   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
December 2007 to 2014. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
320.22 1,007.17 948.46 1,585.34 0 0 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
74  SUBSIDY FUND FOR THE PROMOTION OF ENERGY-SAVING PRODUCTS 
1. Title of the subsidy programme 
 
Subsidy fund for the promotion of energy-saving products. 
 2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To support the promotion and application of ef ficient lighting products, and improve energy 
efficiency level for energy-using products. 
 
4. Background and authority for the subsidy 
 
MOF, NDRC. 
 5. Legislation under which it is granted 
 MOF Circular Cai Jian No. 213 of 2009.  6. Form of the subsidy 
 Financial appropriations.  
7. To whom and how the subsidy is provided 
 
Grants are provided to the consumers purchasing  the efficient energy-saving products by the 
central finance, which will first be paid to the consumer, and then reimbursed by the financial 
departments to the enterprises.  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
2,369.40 12,601.78 15,391.18 18,005.21 26,296.63 6,732.37 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
May 2009 to the present. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 74 - 
 
  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  
75  SUBSIDY FUND FOR THE RENEWABLE ENERGY-SAVING BUILDING MATERIALS 
1. Title of the subsidy programme 
 
Subsidy fund for the renewable energy-saving building materials. 
 2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To support the treatment and recycling of construction wastes of Wenchuan earthquake, and support the production, promotion and utilization of renewable energy-saving building materials. 
 
4. Background and authority for the subsidy 
 MOF. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 677 of 2008. 
 6. Form of the subsidy 
 Financial appropriations.  7. To whom and how the subsidy is provided 
 1) Loans with discounted interest shall be granted to the enterprises engaged in the production of 
renewable energy-saving building materials; 
2) Incentives shall be given to the projects of  promotion and utilization of renewable energy-
saving building materials.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
0 0 0 0 0 0 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 2008 to the present.  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
76  SPECIAL FUND FOR ENERGY CONSERVATION AND EMISSION REDUCTION OF 
COMMUNICATION AND TRANSPORTATION 
1. Title of the subsidy programme 
 
Special fund for energy conservation and emission  reduction of communication and transportation. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 75 - 
 
  2. Period covered by the notification 
 
2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To promote the energy conservation and emission  reduction of communication and transportation. 
 
4. Background and authority for the subsidy 
 MOF, Ministry of Transport (MOT). 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 374 of 2011; 
MOF Circular Cai Jian No. 654 of 2014.  
6. Form of the subsidy 
 
Financial appropriations.  
7. To whom and how the subsidy is provided 
 
Rewards instead of Grants are provide to the eligible enterprises and public service institutions 
engaged in energy conservation and emission re duction of communication and transportation for 
highway and waterway By MOF and MOT, with the subsidized amount comprehensively measured and determined based on the nature of projects, aggregate investment, actual amount of 
conserved energy and reduced emission, and the social effect generated. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
Not Applicable Not Applicable 248.14 497.66 748.65 749.65 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 2011 to 31 December 2018. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 77  SUBSIDY FUND FOR SHIP-TYPE STANDA RDIZATION OF THE MAIN LINE OF THE 
YANGTZE RIVER 
1. Title of the subsidy programme 
 
Subsidy fund for ship-type standardization of the main line of the Yangtze River. 
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To promote shipping structure adjustment in the ma in line of the Yangtze River, improve the lock 
throughput efficiency and facilitate the waterw ay development of the main line of the Yangtze 
River. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 76 - 
 
  4. Background and authority for the subsidy 
 
MOF, MOT.  
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 46 of 2010. 
 
6. Form of the subsidy 
 Financial appropriations. 
 
7. To whom and how the subsidy is provided 
 
From 1 October 2009 to 31 December 2013, fund is provided to the eligible ship-ownersof 
disassembled or remoulded vessels, with the specific amount determined based on the tonnage of disassembled or remoulded vessels and other factors. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
Not Applicable 300 320 300 34 Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1 October 2009 to 31 December 2013.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
78  SUBSIDY FUND FOR SHIP-TYPE ST ANDARDIZATION OF IN-LAND RIVER 
1. Title of the subsidy programme 
 
Subsidy fund for ship-type standardization of in-land river.  2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To promote shipping structure adjustment of in-lan d river, improve the lock throughput efficiency 
and facilitate the development of in-land water transportation. 
 4. Background and authority for the subsidy 
 
MOF, MOT. 
 5. Legislation under which it is granted 
 MOF Circular Cai Jian No. 61 of 2014.  
6. Form of the subsidy 
 
Financial appropriations.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 77 - 
 
  7. To whom and how the subsidy is provided 
 
From 1 October 2013 to 31 December 2015, fund is provided to the eligible ship-owners of disassembled or remoulded the vessels and waterway transport operators of newly-built 
demonstration ships, with the specific amount determined based on the tonnage of disassembled 
or remoulded vessel and other factors.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
Not Applicable Not Applicable Not Applicable Not Applicable 0 1,500 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1 October 2013 to 31 December 2015.  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
79  SPECIAL FUND FOR THE DEVELOPMENT OF CIRCULAR ECONOMY 
1. Title of the subsidy programme 
 
Special fund for the development of circular economy. 
 2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To promote the development of circular economy,  improve the resources- utilizing efficiency, 
protect and improve the environment, and achieve sustainable development. 
 
4. Background and authority for the subsidy 
 MOF, NDRC. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 616 of 2012. 
 6. Form of the subsidy 
 Financial appropriations.  7. To whom and how the subsidy is provided 
 Fund support is provided to the key projects of circular economy and technologies and products related to circular economy, specifically as follows: 
1) Comprehensive financial subsidy combining appropriation in advance and settlement shall be 
available for the construction of national "urban mining" demonstration bases; 2) Support to resource utilization and harmless treatment of kitchen wastes, and demonstration of 
recycling transformation of industrial parks shall refer to that for the national "urban mining" 
demonstration bases; 3) Support to re-manufacturing shall mainly take the form of subsidizing the collection of old products and the promotion and industrializ ed development of remanufactured products; G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 78 - 
 
  4) Support to the demonstration and promotion of clean production technologies shall take the 
forms of government procurement of the technologi es for popularization across the entire industry 
free of charge, or providing a certain proportion of subsidy to the projects.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
Not Applicable 100 1,277.92 1,072.48 785.78 650 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
2010 to the present. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
80  SUBSIDY FUND GRANTED BY THE CENTRAL FINANCE TO CLOSE SMALL ENTERPRISES 
1. Title of the subsidy programme 
 
Subsidy fund granted by the central finance to close small enterprises. 
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To promote industrial restructuring, optimization  and upgrading, and save energy and resources. 
 4. Background and authority for the subsidy 
 MOF, MIIT.  
5. Legislation under which it is granted 
 
MOF Circular Cai Qi No. 231 of 2010. 
 
6. Form of the subsidy 
 Financial appropriations. 
 
7. To whom and how the subsidy is provided 
 
The fund is allocated by the central finance to provincial-level finance departments, who together 
with competent departments of industry and info rmation technology formulate and organize to 
implement specific plans for using the fund, and timely allocate the fund to relevant enterprises. 
The fund is mainly used for the replacement of  employees from closed enterprises, and other 
expenses.  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
Not Applicable 1,474.79 1,720.08 2,885.47 2,530.49 2,700.00 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 79 - 
 
  9. Duration of the subsidy and/or any other time-limits attached to it 
 
September 2010 to 2014.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
81  SPECIAL FUND FOR THE DEVELOPMENT OF STRATEGIC EMERGING INDUSTRY 
1. Title of the subsidy programme 
 
Special fund for the development of strategic emerging industry. 
 2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To promoting the breakthrough and industrialization of key and critical technologies to realize innovation-driven development.  
 
4. Background and authority for the subsidy 
 
MOF, NDRC. 
 5. Legislation under which it is granted 
 MOF Circular Cai Jian No. 1111 of 2012.  6. Form of the subsidy 
 Financial appropriations.  
7. To whom and how the subsidy is provided 
 
Support is provided to the development of emerging industries by granting subsidy, purchasing the 
shares of start-up investment funds, and other forms.  
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
Not Applicable Not Applicable Not Applicable 7,000 8,000 8,000 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 December 2012 to the present. 
 
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 82  SUBSIDY FUND FOR PRODUCING GOODS SPECIALLY NEEDED BY THE ETHNIC 
MINORITIES 
1. Title of the subsidy programme 
 
Subsidy fund for producing goods specially needed by the ethnic minorities.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 80 - 
 
   
2. Period covered by the notification 
 2009-2014 
 
3. Policy objective and/or purpose of the subsidy 
 
To satisfy the special consumption needs of ethni c minorities people, and promote the economic 
development and social stability of the regions inhabited by ethnic minorities.  4. Background and authority for the subsidy 
 MOF.  
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 640 of 2007. 
 
6. Form of the subsidy 
 Financial appropriations. 
 
7. To whom and how the subsidy is provided 
 
The enterprises manufacturing goods specially n eeded by the ethnic minorities and meeting the 
following conditions may apply for the fund. The fund is mainly used for subsidizing the development of production such as technical improvement, technical promotion and technical 
training at the enterprises manufacturing goods specially needed by the ethnic minorities, like 
border-selling tea, the production tools specially needed by ethnic minorities, arts and crafts of 
ethnic minorities, articles used for culture and sports activities of ethnic minorities, OTC drugs of ethnic groups etc. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
60 60 80 80 110 110 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 2007 to the present.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
83  SUBSIDY FOR HOUSEHOLD ELECTRIC APPLIANCES TRADE-IN 
1. Title of the subsidy programme 
 
Subsidy for household electric appliances trade-in. 
 2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To boost and expand consumption demands, impr ove the efficiency of utilizing energies and 
resources, reduce environmental pollution, promot e energy-saving, reduction of emission and the 
development of circular economy. G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 81 - 
 
   
4. Background and authority for the subsidy 
 MOF, MOFCOM, NDRC, MIIT, Ministry of Environmental Protection (MEP), State Administration for 
Industry & Commerce (SAIC), General Administrati on of Quality Supervision, Inspection and 
Quarantine (AQSIQ).  
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 298 of 2009; MOF Circular Cai Jian No. 498 of 2009; 
MOF Circular Cai Jian No. 53 of 2010. 
 6. Form of the subsidy 
 Financial appropriations.  
7. To whom and how the subsidy is provided 
 
1) Purchasers in the provinces where policies of trade-in old household electric appliances for new 
ones apply, who deliver or sell the old home electronic appliances to the bid-winning collection 
enterprises and buy new ones at the bid-winning enterprises are eligible for the subsidy; 
2) Enterprises collecting household electric appliances who purchase old ones from purchasers, deliver and sell them to the designated dismantling enterprises are eligible to be subsidized for the 
incurred transportation costs; and such enterprises are also eligible for the subsidy if they 
complete the dismantling of the old ones delivered and sold to them by purchasers.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
2,000 9,867.30 18,545.87 Not Applicable Not Applicable Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 1 June 2010 to 31 December 2011.  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  
84  SUBSIDY FOR THE SALES OF HOUSEHOLD ELECTRIC APPLIANCES IN RURAL AREAS 
1. Title of the subsidy programme 
 
Subsidy for the sales of household electric appliances in rural areas. 
 2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 To expand consumption in rural areas, improve th e quality of life of farmers, and promote the 
building of new socialist countryside. 
 
4. Background and authority for the subsidy 
 MOF. 
 G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 82 - 
 
  5. Legislation under which it is granted 
 
MOF Circular Cai Jian No. 709 of 2008.  
6. Form of the subsidy 
 
Financial appropriations. 
 
7. To whom and how the subsidy is provided 
 Fund is directly provided to the farmers who purchase household electric appliances of subsidized 
types within specified time limit according to a certain proportion. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
15,022.65 19,000.00 18,018.20 15,008.00 3,610.46 Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1 February 2009 to 31 January 2013. 
 10. Statistical data permitting an assessment of the trade effects of a subsidy 
 Not available.  85  SUBSIDY FOR THE SALES OF AUTOMOBILES AND MOTORCYCLES IN RURAL AREAS 
1. Title of the subsidy programme 
 
Subsidy for the sales of automobiles and motorcycles in rural areas.  
 
2. Period covered by the notification 
 
2009-2014 
 3. Policy objective and/or purpose of the subsidy 
 
To accelerate the upgrading of consumption in rural areas, and improve the production and living 
conditions of farmers.  
4. Background and authority for the subsidy 
 
MOF, NDRC, MIIT, The Ministry of Public  Security (MPS), MOFCOM, SAIC, AQSIQ. 
 
5. Legislation under which it is granted 
 MOF Circular Cai Jian No. 248 of 2009. 
 
6. Form of the subsidy 
 
Financial appropriations. 
 7. To whom and how the subsidy is provided 
 Fund is provided to the farmers who purchase or trade in the eligible automobiles or motorcycles that are sold in rural areas.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
- 83 - 
 
  8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 
Unit: million RMB 
2009 2010 2011 2012 2013 2014 
5,000 13,500 4,000 5,000 0 Not Applicable 
 
9. Duration of the subsidy and/or any other time-limits attached to it 
 
1) Policy of sales of automobiles in rural areas applied from 1 March 2009 to 31 December 2009; 
2) Policy of sales of motorcycles in rural areas applied from 1 February 2009 to 31 January 2013.  
10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available. 
 
86  PREFERENTIAL TAX TREATMENT FOR ANTI-HIV-AIDS MEDICINE 
1. Title of the subsidy programme 
 
Preferential tax treatment for anti-HIV-AIDS medicine.  
 2. Period covered by the notification 
 2009-2014  
3. Policy objective and/or purpose of the subsidy 
 
To push forward the prevention and cure of HIV-AIDS.  
4. Background and authority for the subsidy 
 
MOF, SAT. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Guan Shui No.26 of 2011; 
MOF Circular Cai Shui No.128 of 2011.  6. Form of the subsidy 
 Preferential tax treatment.   
7. To whom and how the subsidy is provided 
 
1) Tariff, import VAT and VAT in the domestic circulation stages on the imported anti-HIV-AIDS 
medicine shall be exempted.  
2) VAT in the production and circulation stages on domestically produced anti-HIV-AIDS medicine 
by designated domestic producers shall be exempted.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy 
 Not available. 
 9. Duration of the subsidy and/or any other time-limits attached to it 
 1 January 2011 to the end of 2015.  G/SCM/N/220/CHN • G/SCM/N/253/CHN • G/SCM/N/284/CHN 
 
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  10. Statistical data permitting an assessment of the trade effects of a subsidy 
 
Not available.  
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