./.  WORLD TRADE  
ORGANIZATION  G/ADP/Q1/CHN/52 
G/SCM/Q1/CHN/52 21 March 2005 
 
(05-1163) 
Committee on Anti-Dumping Practices 
Committee on Subsidies and Countervailing Measures Original:   English 
 
 
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
Questions Posed by the UNITED STATES Regarding the Notification  
of the PEOPLE'S REPUBLIC OF CHINA  
 
 The following communication, dated 17 March 2005, is being circulated at the request of the Delegation of the United States.  
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The United States thanks China for the notif ication of its revised Foreign Trade Law
1 and 
countervailing duty regulations2. 
 
Q1. With regard to Article 4 of the notified re gulations, please explain what other factors will be 
considered if it appears that a subsidy is speci fic though it may not meet the criteria under Article 4 
(1-5).  Q2. Article 4 of the notified regulations does not  appear to describe whether a subsidy will be 
found to be specific if it is limited “in fact” to cer tain enterprises or industries, as provided for in 
Article 2.1(c) of the Agreement on Subsidies a nd Countervailing Measures (ASCM).  Please explain 
whether and under what circumstances a subsidy will be found to be “in fact” specific.  Q3. With regard to Article 6(4) of the notifie d regulations, please clarify that the provision of 
equity capital from a government shall not be consid ered as conferring a benefit unless the investment 
decision is regarded as inconsistent with usual busi ness practice (including for the provision of risk 
capital) of private investors in the territory of that Member in accordance with ASCM Article 14(a). 
 Q4. Please clarify whether under Articles 6.5 and 6.6, the adequacy of remuneration will be 
determined in relation to the prevailing market conditions for the good or service in question in the 
country of provision or purchase, taking into account price, quality, availability, marketability, 
transportation and other conditions of purchase or  sale, in accordance with ASCM Article 14(d). 
  Q5. Please explain how China will measure whether im ports are negligible per Article 9(1) of the 
notified regulations and Article 11.9 of the ASCM. 
 
Q6. With regard to Article 15 of the notified re gulations, please confirm that evidence with regard 
to the amount and nature of the subsidy will need to be provided in accordance with ASCM 
Article 11.2(iii) and not merely evidence that a subsidy exists. 
                                                     
 
1 G/SCM/N/1/CHN/1/Suppl.4 (1 December 2004) 
2G/SCM/N/1/CHN/1/Suppl.3 (20 October 2004)  G/ADP/Q1/CHN/52 
G/SCM/Q1/CHN/52 Page 2 
 
 
  
Q7. With regard to Article 29 of the notified re gulations, please confirm that the provisional duties 
guaranteed by deposits or bonds w ill be equal to the amount of the provisionally calculated 
subsidization per ASCM Article 17.2. 
 
Q8. With regard to number 4 in the "List of Export Subsidies " in the notified regulations, please 
clarify what China means by “the provision of goods or services by the government of an exporting 
country Y either directly or indirectly to the producti on of exports".  Please clarify how China will 
determine an indirect provision of goods or services.  Does “indirectly” mean “through government 
mandated-schemes”, as in “item d” of the ASCM’s “Illustrative List of Export Subsidies”, or does it 
have a different meaning?    Q9. The ASCM’s “Illustrative List of Expor t Subsidies” does not use the term “special 
circumstances”.  Please provide examples of the "special circumstances " mentioned in numbers 4, 8, 
9, and 11 of the “List of Export Subs idies” in the notified regulations.   
 
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