WORLD TRADE  
ORGANIZATION  G/SCM/N/123/CHN 
13 April 2006 
 (06-1762) 
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 SCM Agreement  
 
PEOPLE'S REPUBLIC OF CHINA 
   The following communication, dated 11 April 2006,  is being circulated at the request of the 
Delegation of the People's Republic of China. 
  
_______________ 
 
 
 The following notification constitutes the People’s Republic of China’s new and full 
notification of information on progr ammes granted or maintained at the central government level in 
China. In general, the period to which the following information applies is 2001  to 2004.  
  Insofar as the notification obligation is a tran sparency-orientated provision that, pursuant to 
Article 25.7 of the Agreement, carries no legal weight  as to the actual identification or measurement 
of a subsidy, its action ability status, or its trade effects, China has included certain activities in this 
notification which arguably are not (or are not always ) “specific subsidies” within the meaning of the 
Agreement. 
 
 G/SCM/N/123/CHN 
Page 2  
 
   
I.  
1. Title of the subsidy programme
 
 
 Preferential tax policies for foreign-invested enterprises 
 2. Period covered by the notification
 
 
 2001-2004  
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 w ith Foreign Investment 
and Foreign Enterprises (the Tax Law) ; 
 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;  
State Council Circular Guo Fa No. 37 of 2000 
 6. Form of the subsidy
 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
  (1)  Any enterprise with foreign investment of  a production nature scheduled to operate for a 
period of not less than ten years shall, from the year beginning to make profit, be exempted from 
income tax in the first and second years and allowe d a fifty per cent reduction in the third to fifth 
years (“two years of exemption and three years fifty per cent reduction”).  (2) Any foreign investor of 
an enterprise with foreign investment which reinv ests its share of profit obtained from the enterprise 
directly into that enterprise by increasing its regist ered capital, or uses the profit as capital investment 
to establish other enterprises with foreign investment  to operate for a period of not less than five 
years, may be refunded forty per cent of the inco me tax already paid on the reinvested amount.  
(3) For direct reinvestment in China by foreign i nvestors for the organization and expansion of export-
oriented enterprises or advanced technology enterp rises, the entire portion of enterprises income tax 
that has been paid on the reinvested amount may be  refunded.  (4) Any foreign enterprise which has 
no establishment or place in China but derives profit,  interest, rental, royalty and other income from 
sources in China, or though it has an establishmen t or a place in China, the said income is not 
effectively connected with such est ablishment or place, may, since January 1 2000, be levied at the  G/SCM/N/123/CHN 
 Page 3 
 
 
  reduced income tax rate of ten per cent, but the in come tax of the profit that the foreign investors 
made out of the foreign invested enterprises are exempted.  (5) Income  tax of the royalty received for 
the supply of technical know-how in scientific research, exploitation of energy resources, development of the communications and transportations  industries, agricultural, forestry and animal 
husbandry production, and the development of import ant technologies may be levied at the reduced 
rate of ten per cent.  Where the technology suppli ed is advanced or the terms are preferential, 
exemption from income tax may be allowed.  
 
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
 
  1991-present, while item (4) 2000-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
II.  
1. Title of the subsidy programme
 
 
 Preferential tax policies for foreign-invested export enterprises 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To encourage foreign investment 
 
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 w ith Foreign Investment 
and Foreign Enterprises ; 
 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  
 G/SCM/N/123/CHN 
Page 4  
 
  6. Form of the subsidy
 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
  Export-oriented enterprises invested in and operated by foreign businesses for which in any 
year the output value of all export products amounts to  seventy per cent or more of the output value of 
the products of the enterprise for that year may pay enterprise income tax at the tax rate specified in 
the Tax Law reduced by one half after the period of  enterprise income tax exemption or reduction has 
expired in accordance with the provisions of the Ta x Law.  However, export-oriented enterprises in 
the special economic zones and economic and t echnological development zones and other such 
enterprises subject to enterprise inco me tax at the tax rate of fift een per cent that qualify under the 
above-mentioned conditions shall pay enterprise inco me tax at the tax rate of ten per cent.  
 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
 
 
 1991-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
 
III.  
1. Title of the subsidy programme  
 
Preferential tax policies for foreign-invested en terprises engaged in agriculture, forestry or 
animal husbandry and foreign-invested enterpri ses established in remote underdeveloped areas 
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To encourage foreign investment into agricu lture, forestry or animal husbandry, and into 
remote underdeveloped areas 
 
4. Background and authority for the subsidy  
 
 MOF, SAT, MOFCOM  G/SCM/N/123/CHN 
 Page 5 
 
 
   
5. Legislation under which it is granted  
 
Income Tax Law of the People's Republic of China for Enterprises w ith Foreign Investment 
and Foreign Enterprises  
 6. Form of the subsidy
 
 
 Preferential tax treatment  
 
7. To whom and how the subsidy is provided  
  Any foreign-invested enterprises engaged in ag riculture, forestry or animal husbandry and 
foreign-invested enterprises established in remote  underdeveloped areas may be allowed a fifteen to 
thirty per cent reduction of the amount of income tax payable for a period of another ten years following the expiration of the period for tax exemption or reduction.  
 
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
 
  1991-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy$
 
 Not available 
 
 IV.  
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
 
 
 2001-2004  
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 G/SCM/N/123/CHN 
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5. Legislation under which it is granted
 
 Income Tax Law of the People's Republic of China for Enterprises w ith Foreign Investment 
and Foreign Enterprises , 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investme nt and Foreign Enterprises, 
State Council Circular Guo Fa No.13 of 1999 
 6. Form of the subsidy
 
  
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
   The income tax of foreign-invested enterp rises engaged in energy and transportation 
infrastructure projects such as harbour and wharf project s may be levied at the reduced rate of fifteen 
per cent. The implementing scope of the policy stipulated in Art.73.1.1.3 of Rules for the 
Implementation of the Income Tax Law of the Pe ople's Republic of China for Enterprises with 
Foreign Investment and Foreign Enterprises  is enlarged to nationwide. 
 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
 
 
 1999-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
V.  
1. Title of the subsidy programme
 
 
Preferential tax policies for Chinese-foreign e quity joint ventures engaged in port and dock 
construction 
 
2. Period covered by the notification  
 
 2001-2004 
  G/SCM/N/123/CHN 
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  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 Invest ment and Foreign Enterprises 
 
6. Form of the subsidy  
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
Chinese-foreign equity joint ventures engaged in  port and dock construction may be imposed 
of enterprise income tax at the reduced rate of fi fteen per cent, and where the period of operations is 
15 years or more may be exempt from enterprise in come tax from the first year to the fifth year 
starting from the year beginning to make profit and s ubject to enterprise income tax at a rate reduced 
by one half for the sixth year through the tenth 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
 
 
 1991-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 VI.  
1. Title of the subsidy programme
 
 
Preferential tax policies for enterprises with  foreign investment which are technology-
intensive and knowledge-intensive 
 G/SCM/N/123/CHN 
Page 8  
 
  2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To encourage foreign investment 
 
4. Background and authority for the subsidy
 
 
 MOF, SAT, MOFCOM, Ministry of Science and Technology (MOST) 
 5. Legislation under which it is granted
 
 
 SAT Circular Guo Shui Fa No.139 of 1995,  SAT Circular Guo Shui Fa No.135 of 2003 
 
6. Form of the subsidy  
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
 Enterprises with foreign investment which ar e technology-intensive and knowledge-intensive 
and whose major products are enlisted in the “Cat alogue of High and New Technology Products of 
China” promulgated by MOST and the sales revenue of  these products of that year accounts for over 
fifty per cent of the total annual sales revenue of th e enterprise, may be imposed a reduced enterprises 
income tax rate of fifteen per cent . 
 
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
 
 
 1991-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available. 
 
 VII.  
1. Title of the subsidy programme
 
  Preferential tax policies for enterprises with  foreign investment in the border cities 
  G/SCM/N/123/CHN 
 Page 9 
 
 
  2. Period covered by the notification  
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To encourage foreign investment into border cities and expand the open-up policy and 
enhance the development of the border areas 
 4. Background and authority for the subsidy
 
 
 MOF, SAT, MOFCOM  
5. Legislation under which it is granted
 
  SAT Circular Guo Shui Han Fa No.1412 of 1992 
 
6. Form of the subsidy
 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
 The enterprise income tax of the foreign- invested enterprises of a production nature 
established in 12 border cities, counties or towns (note 1) may be levied at a reduced rate of twenty-
four per cent. 
 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
 
 
 1992-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
VIII.   
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, 
and for advanced technology enterprises invest ed in and operated by foreign businesses G/SCM/N/123/CHN 
Page 10  
 
   
2. Period covered by the notification
 
   2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To encourage high and new technology indus trial development and enhance the technology 
progress.   
4. Background and authority for the subsidy
 
  MOF, SAT, MOFCOM, 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 Invest ment and Foreign Enterprises 
 
6. Form of the subsidy  
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
 (1) The enterprise income tax of the enterpri ses with foreign investment recognized as high or 
new technology enterprises established in the St ate high or new technolog y industrial development 
zones may be levied at a reduced rate of fifteen per cent.  The Chinese-foreign equity joint ventures 
recognized as high or new technology enterprises a nd established in the State high or new technology 
industrial development zones of which the operation pe riod is ten years or more may be exempt from 
the enterprise income tax in the first and sec ond years from the year beginning to make profit. 
Foreign-invested enterprises established in the hi gh or new technology industrial development zones 
which are located in the special economic zon es and the economic and technological development 
zones shall be governed by the preferential tax provisions of the special economic zones and the 
economic and technological development zones.  (2 ) Advanced technology ente rprises invested in and 
operated by foreign businesses whic h remain advanced technology enterprises after the period of 
enterprise income tax exemption or reduction has expired in accordance with the provisions of the 
Tax Law may continue to pay enterprise income ta x for an additional three years at the tax rate 
specified in the Tax Law reduced by one 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 
  G/SCM/N/123/CHN 
 Page 11 
 
 
  9. Duration of the subsidy and/or any other time-limits attached to it  
 
 1991-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 IX.  
1. Title of the subsidy programme
 
 
Preferential tax policies for enterprises rec ognized as high or new technology enterprises 
established in the State high or new technology industrial development zones 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To encourage high and new technology indus trial development and enhance the technology 
progress 
 4. Background and authority for the subsidy
 
 
 MOF, SAT, MOST  
5. Legislation under which it is granted
 
  MOF Circular Cai Shui Zi No.001 of 1994 
 
6. Form of the subsidy
 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
 (1) The enterprise income tax of the ente rprises recognized as high or new technology 
enterprises established in the State high or new technology industrial development zones may be 
levied at a reduced rate of fifteen per cent, and may be exempt from the enterprises income tax in the 
first and second years from the year beginning production.  
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/123/CHN 
Page 12  
 
   
9. Duration of the subsidy and/or any other time-limits attached to it
 
  1994-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
X.  
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
 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To absorb foreign investment and expand the open-up policy and enhan ce development of the 
areas  
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 w ith Foreign Investment 
and Foreign Enterprises , 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprises 
 6. Form of the subsidy
 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
 (1) The income tax on enterprises with forei gn investment established in Shenzhen, Zhuhai, 
Shantou, Xiamen and Hainan special economic zones and foreign enterprises which have 
establishments or places in these special economi c zones engaged in production or business 
operations shall be levied at the reduced rate of fiftee n per cent.  (2) The income tax on enterprises 
with foreign investment of a production nature establis hed in the old urban districts of cities where the 
above-mentioned zones are located shall be levied at  the reduced rate of twenty-four per cent.    G/SCM/N/123/CHN 
 Page 13 
 
 
  (3) The income tax on the production- oriented enterprises with forei gn investment established in the 
old urban districts of cities where the above-menti oned zones are located and which are engaged in 
the following projects: (a) technology-intensive or knowledge-intensive projects, (b) projects with foreign investments of over US$30 million and havi ng long periods for return on investment, (c) 
energy resources, transportation and port construction projects, shall be levied at the reduced rate of 
fifteen per cent.  (4) Enterprises with foreign inv estment 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,  and enterprises with foreign investment engaged 
in the development of and operations in agriculture where the period of operations is fifteen years or 
more, shall be exempt from enterprise income tax fro m the first year to the fifth years starting from 
the year beginning to make profit and subject to enterp rise income tax at a rate reduced by one half for 
the sixth year through the tenth year.  (5) The foreign investors who reinvest the profit made from the enterprises established in Hainan special economic zones into the infrastructure construction projects 
of, or agricultural development enterprises in, th e Hainan special economic zones may be refunded 
the entire portion of the enterprise income tax that has been paid on the reinvested amount. 
 
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
 
 
 1984-present, while item (5) 1991-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XI.   
1. Title of the subsidy programme
 
 
Preferential tax policies for enterprises with fo reign investment established in the costal 
economic open areas and in the economic and technological development zones 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To absorb foreign investment and expand the open-up policy and enhan ce development of the 
areas 
 G/SCM/N/123/CHN 
Page 14  
 
  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 w ith Foreign Investment 
and Foreign Enterprises , 
 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  
 
6. Form of the subsidy  
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
 (1) The income tax on enterprises with forei gn investment of a production nature established 
in the economic and technological development zones sha ll be levied at the reduced rate of fifteen per 
cent.  (2) The income tax on enterprises with forei gn investment of a production nature established in 
the coastal economic open areas (note 2) and in th e old urban districts of cities where the economic 
and technological development zones are located shall be levied at th e reduced rate of twenty-four per 
cent.  (3) The income tax on the enterprises with fo reign 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 wh ich are engaged in the following projects: (a) 
technology-intensive or knowledge-intensive projects,  (b) projects with foreign investments of over 
US$30 million and having long periods for return on investment, (c) energy resource, transportation 
and port construction projects, shall be levied  at the reduced rate of fifteen per cent. 
 
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
 
  1984- present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
   G/SCM/N/123/CHN 
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  XII.  
1. Title of the subsidy programme  
 
Preferential tax policies for enterprises with fo reign investment established in Pudong area of 
Shanghai 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To absorb foreign investment and expand the open-up policy and enhan ce development of the 
area 
 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 w ith Foreign Investment 
and Foreign Enterprises;  
 Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Invest ment and Foreign Enterprises.  
 
6. Form of the subsidy  
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
 The income tax on enterprises with foreign inv estment 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 fifteen per cent.   Enterprises with foreign investment engaged in 
energy resources and transport construction projects such as airport, ports, railways, highways and 
power stations where the period of operations is fift een years or more may be exempt from enterprise 
income tax from the first year to the fifth year starting from the year beginning to make profit and 
subject to enterprise income tax at a rate reduced by  one half for the sixth year through the tenth 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/123/CHN 
Page 16  
 
  9. Duration of the subsidy and/or any other time-limits attached to it
 
 
 1991-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XIII.   
1. Title of the subsidy programme
 
  Preferential tax policies for enterprises with foreign investment established in the Three 
Gorges of Yangtze River Economic Zone 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To absorb foreign investment and expand the open-up policy and enhan ce development of the 
areas 
 4. Background and authority for the subsidy
 
 
 MOF, SAT, MOFCOM  
5. Legislation under which it is granted
 
  MOF Circular Cai Shui Zi No.034 of 1995 
 
6. Form of the subsidy
 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
 (1) The income tax on enterprises with forei gn investment of a production nature established 
in the Three Gorges of Yangtze River Economic Zone ( note 3) shall be levied at the reduced rate of 
twenty-four per cent.  (2) The income tax on ente rprises with foreign investment established in the 
Three Gorges of Yangtze River Economic Zone  which are engaged in energy resources, 
transportation, harbour and wharf projects or other pr ojects encouraged by the St ate, shall be levied at 
the reduced rate of fifteen per cent.  (3) The inco me tax on the enterprises with foreign investment of 
a production nature established in the old urban di stricts of the open cities along the Yangtze River 
such as Yichang, Wanxian and Fuling and etc., shall be levied at the reduced rate of twenty-four per 
cent.  (4) Among the enterprises mentioned in item (3), those engaged in technology-intensive or  G/SCM/N/123/CHN 
 Page 17 
 
 
  knowledge-intensive projects, or projects with fore ign 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 fifteen per cent.  
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
 
 
 1995-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XIV.   
1. Title of the subsidy programme
 
 
Preferential tax policies in the western regions 
 
2. Period covered by the notification  
 
 2001-2004 
 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 developm ent among different areas and accelerate the development of the 
regions 
 
4. Background and authority for the subsidy  
  
 MOF, SAT, MOFCOM and other rele vant 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 Circ ular Guo Ban Fa No. 73 of 2001; 
MOF Circular Cai Shui No. 202 of 2001; SAT Circular Guo Shui Fa No. 172 of 1999. 
 
6. Form of the subsidy
 
  
 Preferential tax treatment G/SCM/N/123/CHN 
Page 18  
 
   
7. To whom and how the subsidy is provided
 
 
(1) The income tax on enterprises, domestic a nd foreign-invested, established in the western 
regions (note 4) which are engaged in  industries encouraged by the Stat e shall be levied at the reduced 
rate of fifteen per cent from the year 2001 to 2010.   For domestic enterprises, industries encouraged 
by the State refer to those listed in the  “Catalogue of the Industries, Products and Technologies 
Particularly Encouraged by the State”, and the enterprises must have the items included in the 
Catalogue  as its major business which should account for over seventy per cent of total revenue.  For 
foreign-invested enterprises, industries encouraged by  the State refer to those listed as encouraged in 
the “Catalogue for the Guidance of the Foreign Investment Industries”  and listed in the “Catalogue for 
the Guidance of the Advantageous Industries in Central and Western Regions for Foreign 
Investment”, and the enterprises must have the ite ms as listed in the two Catalogues as its major 
business which should account for over seventy per cent of total revenue.  (2) The enterprises, 
domestic and foreign-invested, which are newly est ablished in the western regions and engaged in 
business such as transportation, electricity, water c onservation and etc., of which the revenue accounts 
for over seventy per cent of total revenue, shall be , from the year beginning production or operation 
for domestic enterprises and from the year beginning to make profit for foreign-invested enterprises 
with the period of operations of ten years or mo re, exempt from the income tax for the first and 
second years and subject to enterprise income tax at  a rate reduced by one half for the third year 
through the fifth year.  (3) Income from production of agricultural specialty products which is a result of returning cultivated land to forests and re turning grazing land to grassland for the sake of 
environmental protection shall be exempt from the agricultural specialty tax for 10 years from the 
year beginning to generate revenue.  (4) The land taken to construct highway s in western regions is 
exempt from the farmland occupation tax.  (5) Th e domestic and the foreign-invested enterprises 
established in the western regions and engaged in the encouraged industries respectively as mentioned 
above in item 1) are exempt from the tariff and impor t VAT for the imported equipments for self uses 
within the total amount of the capital invested, ex cept for those listed in “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”.  (6) Since 
January 1 2000, the foreign-invested enterprises established in nineteen provinces, autonomous 
regions and municipalities directly under the Cent ral Government in central and western regions, 
namely Shanxi Province, Jilin Province, Heilong jiang Province, Anhui Province, Jiangxi Province, 
Henan Province, Hubei Province, Hunan Provin ce, Chongqing Municipality, Sichuan Province, 
Guizhou Province, Yunan Province, Tibet Autonomous  Region, Shaanxi Province, Gansu Province, 
Ningxia Hui Autonomous Region, Qinghai Province, Xinjiang Uygur Autonomous Region, Inner Mongolia Autonomous Region, Guangxi Zhuang Au tonomous Region, which are engaged in the  
industries encouraged by the State as enlisted in the “Catalogue for the Guidance of Foreign 
Investment Industries” as well as engaged in the a dvantageous industries and projects approved by the 
State Council, shall be imposed the income tax at a reduced rate of fifteen per cent for another three 
year following the expiration of the period for “two  years exemption and three years of fifty per cent 
reduction”. 
 
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/123/CHN 
 Page 19 
 
 
   
9. Duration of the subsidy and/or any other time-limits attached to it  
  2001-2010 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XV.  
1. Title of the subsidy programme
 
 
Preferential tax policies for enterprises established in the poverty stricken areas 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To encourage the alleviation of poverty and accelerate the economic development of the 
poverty stricken areas 
 
4. Background and authority for the subsidy
 
 
MOF, SAT, Office of Poverty Alleviation unde r the State Council, and National Development 
and Reform Committee (NDRC) 
 
5. Legislation under which it is granted  
 
 MOF Circular Cai Shui Zi No.001 of 1994 
 6. Form of the subsidy
 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
  The income tax of the enterprises newly est ablished in the old revolution base areas during 
the revolution era, areas with ethnic groups residenc e, remote areas and poverty stricken areas may be 
exempt or reduced for three 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 G/SCM/N/123/CHN 
Page 20  
 
   
9. Duration of the subsidy and/or any other time-limits attached to it
 
  1994-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XVI.   
1. Title of the subsidy programme
 
 
 Fiscal funds to alleviate poverty 
 2. Period covered by the notification
 
 
 2001-2004  
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, NDRC 
 
5. Legislation under which it is granted  
 
 MOF Circular Cai Nong No.18 of 2000 
 6. Form of the subsidy
 
 
 Financial appropriations  
7. To whom and how the subsidy is provided
 
  The funds are allocated by MOF to local  governments according to the allocation 
programmes which are approved by the State Counc il Leading Group of Poverty Alleviation.  The 
funds are used by local governments to provide subsidies to individuals and organizations for 
individual subsidization, infrastructure constructi on and training programmes in the poverty stricken 
areas. 
  G/SCM/N/123/CHN 
 Page 21 
 
 
  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 
2001 2002 2003 2004 Total 
9,090 9,590 10,390 11,177 40,247 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
  1980-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XVII.   
1. Title of the subsidy programme
 
 
Specific subsidy on agricultural production and c onstruction in the poverty stricken areas of 
Hexi and Dingxi of Gansu Province and Xihaigu of Ningxia Hui Autonomous Region 
 
2. Period covered by the notification  
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
To accelerate economic and social developmen t of the poverty stricken areas of Gansu 
Province and Ningxia Hui Autonomous Region 
 
4. Background and authority for the subsidy  
  MOF, Office of Poverty Alleviation under the State Council, NDRC 
 
5. Legislation under which it is granted
 
 
 MOF Circular Cai Nong No.67 of 2001 
 6. Form of the subsidy
 
 
 Financial appropriations  
7. To whom and how the subsidy is provided
 
  The funds are allocated by MOF to the local governments of Gansu Province and Ningxia Hui 
Autonomous Region to provide subsidies to i ndividuals and organizations for individual G/SCM/N/123/CHN 
Page 22  
 
  subsidization, infrastructure construction, trai ning programmes and transmigration and resettlement 
programmes in the poverty stricken areas.  Prior to 2004, the two provincial governments would 
submit programmes applying for the subsidy first.   The funds would be allocated after the 
programmes were jointly approved by MOF, Office of Poverty Alleviation under the State Council 
and NDRC.  From 2004 on, funds are allocated firs t to the two provincial governments which are 
required to submit programme later for record only instead of for approval.  
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 
2001 2002 2003 2004 Total 
200 200 200 200 800 
  
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 1983-2008 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XVIII.   
1. Title of the subsidy programme
 
 
 Interests discount of poverty alleviation loans  
2. Period covered by the notification
 
  2001-2004 
 
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, People’s Bank of China 
 5. Legislation under which it is granted
 
 
 People’s Bank of China Circular Yin Fa No.185 of 2001   G/SCM/N/123/CHN 
 Page 23 
 
 
  6. Form of the subsidy  
 
 Interests discount  
7. To whom and how the subsidy is provided
 
 
Agricultural Bank of China collects and subm its the information on loans provided to 
individuals and organizations in the poverty st ricken areas on progra mmes of infrastructure 
construction and development of planting, breedi ng and processing, etc.  After local financial 
authorities and local Offices of Poverty Alleviati on jointly review and approve the programmes, MOF 
settles the interests discount with the headquarter  of Agricultural Bank of China. Since 2004, the 
funds of this interests discount are partially appropriated  to the governments of the poverty stricken 
counties which will independently choose the financ ial institutions to provide poverty alleviation 
loans and negotiate on the terms of interests discount settlement. 
 
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 
2001 2002 2003 2004 Total 
524.50 530 530 613.29 2197.79 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
  1986-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XIX.   
1. Title of the subsidy programme
 
 
 Preferential tax policies for enterp rises which utilize the waste materials 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
 
 To protect the environment and encourage the recycling of resources 
 
4. Background and authority for the subsidy  
 
 MOF, SAT G/SCM/N/123/CHN 
Page 24  
 
   
5. Legislation under which it is granted
 
  MOF Circular Cai Shui Zi No.001 of 1994 
 
6. Form of the subsidy
 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
The income tax of the enterpri ses which use the waste materials such as waste water, waster 
residue and waste gas as major materials for productio n may be exempt or reduced within five 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
 
  1994-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XX.  
1. Title of the subsidy programme
 
 
 Preferential tax policies for enterprises suffering from natural disasters  
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
 
 To reduce the losses due to natural disasters 
 
4. Background and authority for the subsidy  
 
 MOF, SAT 
  G/SCM/N/123/CHN 
 Page 25 
 
 
  5. Legislation under which it is granted  
 
 MOF Circular Cai Shui Zi No.001 of 1994  
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The income tax of the enterprises suffering from natural disasters such as floods, fire or 
earthquakes etc. may be exempt or reduced for one 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
 
 
 1994-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 Not available  
 
XXI.   
1. Title of the subsidy programme
 
 
 Preferential tax policies for  welfare enterprises 
 
2. Period covered by the notification  
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To encourage increase of job opportunities and help the employment of the disabled people 
 
4. Background and authority for the subsidy  
 
 MOF, SAT  
5. Legislation under which it is granted
 
  SAT Circular Guo Shui Fa No.155 of 1994 
 G/SCM/N/123/CHN 
Page 26  
 
  6. Form of the subsidy
 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
 
(1) The income tax paid by the enterprises in which employees with disabilities such as 
blindness, deafness, dumbness and physical deformities are over 50% of total employees may 
be one hundred per cent refunde d.  (2) The income tax paid  by the enterprises in which 
employees with disabilities such as blindness, deafness, dumbness and physical deformities 
are over 35% but less than 50% of total employees,  if at a loss, may be partially or totally 
refunded to the extent to compensate the loss. 
 
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-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XXII.   
1. Title of the subsidy programme
 
  Preferential tax policies for  enterprises making little profits  
 
2. Period covered by the notification
 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To reduce the burden of the enterprises maki ng little profits to maintain job opportunities 
 
4. Background and authority for the subsidy  
  MOF, SAT 
 
5. Legislation under which it is granted
 
 
 MOF Circular Cai Shui Zi No.009 of 1994  G/SCM/N/123/CHN 
 Page 27 
 
 
   
6. Form of the subsidy  
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
(1) The income tax enterprises whose annual taxa ble income is less than RMB 30,000 may be 
levied at a reduced rate of eighteen per cent.  (2 ) The income tax of enterprises whose annual taxable 
income is less than RMB 100,000 but more than RMB 30,000 may be levied at a reduced rate of 
twenty-seven per cent. 
 
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-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XXIII.   
1. Title of the subsidy programme
 
 
 Preferential tax policies for township enterprises  
2. Period covered by the notification
 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To reduce the burden of township enterprises due  to the imperfect social security system and 
to encourage the township enterp rise to improve the living and working conditions of their employees. 
 
4. Background and authority for the subsidy  
  MOF, SAT 
 
5. Legislation under which it is granted
 
 
 MOF Circular Cai Shui Zi No.001 of 1994 G/SCM/N/123/CHN 
Page 28  
 
   
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
Ten per cent of the income tax payable by th e township enterprise may be exempted to 
subsidize the social security expenses.  
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-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XXIV.   
1. Title of the subsidy programme
 
 
Preferential tax policies for enterprises whic h provide employment for unemployed people 
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To increase and encourage employment  
4. Background and authority for the subsidy
 
  MOF, SAT 
 
5. Legislation under which it is granted
 
 
 MOF Circular Cai Shui Zi No.001 of 1994 
  G/SCM/N/123/CHN 
 Page 29 
 
 
  6. Form of the subsidy  
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
 
(1) The income tax of the newly established urban enterprises which employ unemployed 
people over sixty per cent of total employees within the year may be exempted for three years.  
(2) The income tax of the above mentioned ente rprises which newly employ unemployed people over 
thirty per cent of original total employees within  the year may be reduced by one half for an 
additional two years after the three years period of income tax exemption has expired. 
 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-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XXV.   
1. Title of the subsidy programme
 
 
Preferential tax policies for scientific re search institutions under transformation 
 
2. Period covered by the notification  
  2003-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
To push forward the scientific research instituti ons to reform under the conditions of market 
economy 
 
4. Background and authority for the subsidy  
  MOF, SAT 
 
5. Legislation under which it is granted
 
 
 MOF Circular Cai Shui No.137 of 2003 G/SCM/N/123/CHN 
Page 30  
 
   
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The income tax of the 242 scientific research institutions subordinate to the former 10 
National Bureaus administrated by the former St ate Economic and Trade Commission (SETC) and the 
134 scientific research institutions subordinate to 11 Ministries su ch as Ministry of Construction 
which transformed into enterprises or be integrated  into enterprises, as well as the scientific research 
institutions subordinate to th e organizations under the State Council which transformed into 
enterprises or be integrated into enterprises afte r reviewed and approved by  MOST and MOF, shall be 
exempted for five years since the day of the transformation registration.  
 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
 
 
 2003-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XXVI.   
1. Title of the subsidy programme
 
 
Preferential tax policies for the resear ch and development of enterprises 
 
2. Period covered by the notification  
  2003-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
To encourage the research a nd development of enterprises 
 
4. Background and authority for the subsidy  
 
 MOF, SAT   G/SCM/N/123/CHN 
 Page 31 
 
 
  5. Legislation under which it is granted  
 
 MOF Circular Cai Shui No.244 of 2003  
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The actual expenses of domestic industrial ente rprises, regardless of the ownership, on 
research and development of new products, new t echnologies and new crafts which has increased ten 
per cent or more from the previous year, may be offs et by 150% from the taxable income of the 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
 
  2003-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XXVII.   
1. Title of the subsidy programme
 
 
Preferential tax policies for the research and development of foreign-invested enterprises 
 
2. Period covered by the notification  
  
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
 
To encourage the research a nd development of enterprises 
 
4. Background and authority for the subsidy  
 
 MOF, SAT 
 G/SCM/N/123/CHN 
Page 32  
 
  5. Legislation under which it is granted
 
 
 SAT Circular Guo Shui Fa No.173 of 1999  
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The actual expenses of foreign-invested ente rprises on research and development conducted 
in China, which has increased ten per cent or more  from the previous year, may be offset by 150% 
from the taxable income of the 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
 
  1999-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XXVIII.   
1. Title of the subsidy programme
 
 
Preferential tax policies for enterprises transferring technology 
 
2. Period covered by the notification  
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
 
To encourage the transfers of technology 
 
4. Background and authority for the subsidy  
 
 MOF, SAT 
  G/SCM/N/123/CHN 
 Page 33 
 
 
  5. Legislation under which it is granted  
 
 MOF Circular Cai Shui Zi No.001 of 1994  
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The income tax of enterprises profiting from technology transfers as well as from providing 
technology consultation, technology services and tec hnology training in the transfer, may be exempt 
where the annual net income of the enterprises is  less than RMB 300,000, and where the annual net 
income is more than RMB 300,000, the exceeding part shall be levied at the regular rate. 
 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
 
 
 2001-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XXIX.   
1. Title of the subsidy programme
 
 
Preferential tax policies for the key lead ing enterprises engaged in agricultural 
industrialization 
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
To encourage the agricultural industrialization 
 
4. Background and authority for the subsidy  
  MOF, SAT, Ministry of Agriculture (MOA)  
 G/SCM/N/123/CHN 
Page 34  
 
  5. Legislation under which it is granted
 
 
MOA Circular Nong Jing Fa No.8 of 2000; MOA Circular Nong Jing Fa No.10 of 2000; 
SAT Circular Guo Shui Fa No. 124 of 2001. 
 6. Form of the subsidy
 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
 
The income of the key leading enterprises, and of their holding subsidiary companies, 
obtained from planting, animal and fish farming, a nd preliminary processing of agricultural and forest 
products may be exempt from 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
 
 
 2001-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XXX.   
1. Title of the subsidy programme
 
 
Preferential tax policies for the enterprises engaged in forestry 
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
To encourage the development of forestry 
 
4. Background and authority for the subsidy  
  MOF, SAT, State Forestry Administration (SFA) 
  G/SCM/N/123/CHN 
 Page 35 
 
 
  5. Legislation under which it is granted  
 
MOF Circular Cai Shui No.171 of 2001, MOF Circular Cai Shui No.49 of 1997 
 
6. Form of the subsidy
 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
The income of the enterprises and institutions obtained from production of forestry, forestry 
seeds as well as from preliminary processing of forestry products may be exempt from income tax 
since January 1 2001. 
 
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
 
 
 2001-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XXXI.   
1. Title of the subsidy programme
 
 
Funds for supporting technological innovation fo r the technological small and medium-sized 
enterprises (SMEs) 
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
To support the SMEs in technology innovation and encourage the industrialization of the 
science and technology achievements 
 
4. Background and authority for the subsidy  
 
 MOF, MOST G/SCM/N/123/CHN 
Page 36  
 
   
5. Legislation under which it is granted
 
  General Office of State Council Ci rcular Guo Ban Fa No. 47 of 1999  
 
6. Form of the subsidy
 
 
 Financial appropriations or loan interests discount  
 7. To whom and how the subsidy is provided
 
 
In the projects of financial appropriations, the SMEs of science and technology nature receive 
firstly seventy per cent of the total assisting amount a pproved to be granted to the enterprises.  In the 
projects of interest discount, the SMEs of science and technology nature receive firstly eighty per cent 
of the assisting fund for interest discount in accordance with the interest settlement document 
provided by the enterprises.  The rest of the grant or assisting fund for interest discount shall be paid 
after the projects being completed as well as checked and accepted.  Each project shall receive no 
more than RMB 1 million and in particular cases no more than RMB 2 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 
2001 2002 2003 2004 Total 
800 500 500 500 2300 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 1999-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XXXII.   
1. Title of the subsidy programme
 
 
Development funds for SMEs  
2. Period covered by the notification
 
  2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
To support the SMEs development  G/SCM/N/123/CHN 
 Page 37 
 
 
   
4. Background and authority for the subsidy  
  MOF, NDRC 
 
5. Legislation under which it is granted
 
 
Law of the People’s Republic of China on Promotion of Small and Medium-sized Enterprises  
 6. Form of the subsidy
 
 
 Financial appropriations or loan interests discount   
7. To whom and how the subsidy is provided
 
 
For the enterprises who invest into  the project mainly with self-o wned capital, the aid is given 
in the form of grant of no more than RMB 2 million or within the limit of the self-owned capital 
investment.  For the enterprises who invest into the pr oject mainly with loans, the aid is given in the 
form of interest discount with a rate decided by th e amount of loans and the interest rate in the same 
term published by People’s Bank of China.  The peri od of each project enjoying the interest discount 
should be no more than two years and the total amount  each project receives in the form of interest 
discount should be no more than RMB 1.5 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 
2004 Total 
100 100 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 2004-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XXXIII.   
1. Title of the subsidy programme
 
 
Fund for international market exploration by SMEs 
 
2. Period covered by the notification  
 
 2001-2004 G/SCM/N/123/CHN 
Page 38  
 
   
3. Policy objective and/or purpose of the subsidy
 
  To assist SMEs to explore the international market 
 
4. Background and authority for the subsidy
 
 
 MOF, MOFCOM 
 5. Legislation under which it is granted
 
 
 MOF Circular Cai Qi No.467 of 2000,  
MOFTEC (MOFCOM) Circular Ji Cai Fa No.270 of 2001 
 
6. Form of the subsidy  
 
 Financial appropriations 
 7. To whom and how the subsidy is provided
 
 
The fund is provided to SMEs or enterprises and organizations which provide services to 
SMEs for the purpose of:  (1) holding or participa ting in overseas exhibitions, (2) accreditation fee for 
quality management system, environment management sy stem or for the product, (3) promotion in the 
international market, (4) exploring a new market, (5) holding trainings and symposiums, (6) overseas 
bidding.  The enterprises receive partial support to its international market exploration fees and the 
grant is allocated on the basis of the approved appl ication for fund after market exploration activities 
are completed.   
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 
2001 2002 2003 2004 Total 
560 480 400 1000 2440 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 1999-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available   G/SCM/N/123/CHN 
 Page 39 
 
 
   
XXXIV.   
1. Title of the subsidy programme  
 
 Special fund for establishment of service system for SMEs  
 2. Period covered by the notification
 
 
 2003-2004  
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 
 5. Legislation under which it is granted
 
 
Law of the People’s Republic of China on Promo tion of Small and Medium-sized Enterprises 
MOF Circular Cai Jian No.124 of 2004 
 
6. Form of the subsidy  
 
 Financial appropriations 
 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 lecturer and 
expenses on teaching materials may be fully subsid ized 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 the SMEs, the actual expe nses 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 
2003 2004 Total  
50 50 100 
 G/SCM/N/123/CHN 
Page 40  
 
  9. Duration of the subsidy and/or any other time-limits attached to it
 
 
 2003-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available  
 
 XXXV.   
1. Title of the subsidy programme
 
  Fund for subsidizing the training of the rural migrant labour force 
 
2. Period covered by the notification
 
 
 2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To improve the quality and the employment capabilities 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, MOA  
 5. Legislation under which it is granted
 
 
  MOF Circular Cai Nong No.38 of 2004   
6. Form of the subsidy
 
  Financial appropriations 
 
7. To whom and how the subsidy is provided
 
 
 The fund is provided to individuals, traini ng institutions or other organizations chosen 
through bidding proce dures to provide training services to farm ers. MOF and MOA jointly review the 
application for fund submitted by local government s. After approval of the application, fund is 
granted by the MOF. 
  G/SCM/N/123/CHN 
 Page 41 
 
 
  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 
2004 total 
250 250 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
  2004-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XXXVI.   
1. Title of the subsidy programme
 
 
Outlay for training of youngster farmers on science and technology  
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To assist the youngster farmers to obtain the knowledge on science and technology and to 
improve their management capacity  
 4. Background and authority for the subsidy
 
 
 MOF, MOA  
5. Legislation under which it is granted
 
 
MOA Circular Nong Ke Jiao Fa No.8 of 1999 
 
6. Form of the subsidy  
 
 Financial appropriations 
 G/SCM/N/123/CHN 
Page 42  
 
  7. To whom and how the subsidy is provided
 
 
 The fund is provided to youngs ter farmers of rural areas.  MOF and MOA jointly review the 
application for fund submitted by ocal governments.  After approval of the application, fund is 
granted 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 
2001 2002 2003 2004 Total 
30 30 50 50 160 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
  1999-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XXXVII.   
 1. Title of the subsidy programme
 
 
 Fund for specialized cooperatives of farmers  
2. Period covered by the notification
 
  2003-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To support and facilitate the developmen t 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 
  G/SCM/N/123/CHN 
 Page 43 
 
 
  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 reviews the 
application for fund submitted by local government s and grants the fund after approval of the 
application.   
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 
2003 2004 Total 
20 50 70 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 2003-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XXXVIII.   
1. Title of the subsidy programme
 
 
 Subsidy for popularization of agricultural technologies   
2. Period covered by the notification
 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To popularize advanced and practical agricultural technologies  
 4. Background and authority for the subsidy
 
 
 MOF   
5. Legislation under which it is granted
 
 
 MOF Circular Cai Nong No.81 of 2004 G/SCM/N/123/CHN 
Page 44  
 
   
6. Form of the subsidy
 
  Financial appropriations 
 
7. To whom and how the subsidy is provided
 
 
 The fund is provided to projects which embody geographic advantages and can serve as a 
model to other areas. MOF reviews the appli cation for fund submitted by local governments and 
grants the fund after approval of the application. 
 
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 
2001 2002 2003 2004 Total 
135 175 175 200 685 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 1999-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XXXIX.   
1. Title of the subsidy programme
 
 
Subsidy for growing superior grain cultivars 
 
2. Period covered by the notification  
 
 2002-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To accelerate the upgrade of grains and crops, 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 
  G/SCM/N/123/CHN 
 Page 45 
 
 
  5. Legislation under which it is granted  
 
  MOF Circular Cai Nong No.16 and17 of 2004  
6. Form of the subsidy
 
  Financial appropriations 
 
7. To whom and how the subsidy is provided
 
 
 The fund is provided to grain cultivars suppl y enterprises in major crop-producing provinces 
chosen through bidding procedures. MOF and MOA jo intly review the application for fund submitted 
by local governments. After approval of the application, fund is granted 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 
2002 2003 2004 Total 
100 300 2852 3252 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 2002-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XL.  
 
1. Title of the subsidy programme
 
 
Subsidy for purchasing agricultural machinery and tools 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To enhance the contribution of agricultural  science and technology, and push forward the 
development of agriculture and rural economies 
 G/SCM/N/123/CHN 
Page 46  
 
  4. Background and authority for the subsidy
 
 
 MOA, MOF   
5. Legislation under which it is granted
 
   MOA Circular Nong Cai Fa No.6 of 2004 
 
6. Form of the subsidy
 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided
 
 
 The fund is provided to individual farmers or services providers on agricultural machinery 
and tools that purchase agricultural machinery a nd tools through bidding procedures.  MOF and MOA 
jointly review the application for fund submitted by local governments.  After approval of the 
application, fund is granted 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 
2001 2002 2003 2004 Total 
20 20 40 70 150 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 1999-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XLI.  
1. Title of the subsidy programme
 
 
Subsidy for actualizing agricultural technology 
 
2. Period covered by the notification  
  2001-2004 
  G/SCM/N/123/CHN 
 Page 47 
 
 
  3. Policy objective and/or purpose of the subsidy  
 
 To accelerate the actualization of agricultura l technological achievements in agriculture, 
forestry, water conservation and irrigation, a nd improve the capacity of agricultural innovation 
 
4. Background and authority for the subsidy  
 
 MOF, MOST 
 5. Legislation under which it is granted
 
 
  MOST Circular Guo Ke Ban Cai Zi No.417 of 2001  
6. Form of the subsidy
 
  Financial appropriations 
 
7. To whom and how the subsidy is provided
 
 
 The fund is provided to individuals or enterprises that are the right-holders for new 
agricultural technology.  MOF and MOST jointly re view the application for fund submitted by local 
governments.  After approval of the appli cation, fund is granted 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 
2001 2002 2003 2004 Total 
400 200 200 250 1050 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 2001-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XLII.   
1. Title of the subsidy programme
 
 
Fund provided for agricultural industrialization 
 G/SCM/N/123/CHN 
Page 48  
 
  2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To increase rural income, increase the scale and modernization of agricultural operation, and 
to improve the efficiency of agriculture in general  
 4. Background and authority for the subsidy
 
 
 MOF   
5. Legislation under which it is granted
 
   MOF Circular Cai Nong No.88 of 2004 
 
6. Form of the subsidy
 
 
 Financial appropriation 
 7. To whom and how the subsidy is provided
 
 
 The fund is provided to qualified enterprises.   The MOF reviews the application for fund 
submitted by local governments and grants th e fund after approval of the application. 
. 
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 
2001 2002 2003 2004 Total 
70 100 100 100 370 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 1998-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
  G/SCM/N/123/CHN 
 Page 49 
 
 
   
XLIII.   
 1. Title of the subsidy programme
 
 
Fund for agricultural disaster relief 
 
2. Period covered by the notification  
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To prevent and control agricultural di sasters as well as provide disaster relief  
 4. Background and authority for the subsidy
 
 
 MOF, MOA  
5. Legislation under which it is granted
 
 
 MOF Circular Cai Nong No.232 of 2001  
 
6. Form of the subsidy  
 
 Financial appropriations 
 7. To whom and how the subsidy is provided
 
 
 The fund is provided to individuals or organi zations that fight against disasters and resume 
production afterwards.  MOF and MOA jointly revi ew the application for fund submitted by local 
governments. After approval of the appli cation, fund is granted 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 
2001 2002 2003 2004 Total 
942 635 735 905 3217 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
  1999-present 
 G/SCM/N/123/CHN 
Page 50  
 
  10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
XLIV.   
1. Title of the subsidy programme
 
 
Fund provided to exempt from or reduce agriculture tax on farmers suffering from poor 
harvest after disasters 
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To relieve tax burden of farmers who suffered from disasters 
 
4. Background and authority for the subsidy  
  MOF, SAT 
 
5. Legislation under which it is granted
 
 
 Regulation of the People’s Republic of China on Agricultural Tax, 
MOF Circular Cai Nong No.132 of 2001  
 
6. Form of the subsidy  
  Financial appropriations 
 
7. To whom and how the subsidy is provided
 
 
 The fund is provided to farmers who suffered from poor harvest due to natural disasters. MOF 
and SAT jointly review the application for fund submitted by local governments and grant the fund 
after approval of the application. 
 
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 
2001 2002 2003 2004 Total 
4,000 1,000 2,000 1,500 8,500 
  G/SCM/N/123/CHN 
 Page 51 
 
 
  9. Duration of the subsidy and/or any other time-limits attached to it  
 
 Period when agriculture tax exists  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XLV.   
1. Title of the subsidy programme
 
 
Subsidy for major flood control and drought resistance  
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To assist areas that suffer from major floods or drought, to prevent or fight against the disasters, and to assist the flood control of major rive rs and lakes directly supervised by the central 
government. 
 4. Background and authority for the subsidy
 
 
 MOF, Ministry of Water Resources (MOWR)  
5. Legislation under which it is granted
 
 
MOF Circular Cai Nong No.30 of 2001 
 
6. Form of the subsidy  
 
 Financial appropriations 
 7. To whom and how the subsidy is provided
 
 
 The fund is provided to enterprises or relate d organizations. MOF and MOWR jointly review 
the application for fund submitted by local government s. After approval of the application, fund is 
granted by the MOF. 
 G/SCM/N/123/CHN 
Page 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 
2001 2002 2003 2004 Total 
950 1364 1342 931 4587 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
  1953-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XLVI.   
1. Title of the subsidy programme
 
 
Fund for construction of small irrigation facilities in rural areas 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To support the projects which are closely rela ted to working and livin g conditions of rural 
population such as rural water supply, rural energy supply, small forestry, small projects on water and 
soil conservation and small irrigation facilities. 
 
4. Background and authority for the subsidy
 
  MOF, MOWR 
 
5. Legislation under which it is granted
 
 
MOF Circular Cai Ban Nong No.74 of 2001  
 6. Form of the subsidy
 
 
 Financial appropriations   G/SCM/N/123/CHN 
 Page 53 
 
 
  7. To whom and how the subsidy is provided  
 
 The fund is provided to individuals, enterp rises or related organizations. MOF and MOWR 
jointly review the application for fund submitted by local governments. After approval of the 
application, fund is granted 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 
2001 2002 2003 2004 Total 
100 100 100 100 400 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
  2001-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XLVII.    
1. Title of the subsidy programme
 
 
Fund for construction of small ecological facilities in rural areas 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To support the projects which are closely rela ted to working and livin g conditions of rural 
population such as rural water supply, rural energy s upply, small forestry, small project on water and 
soil conservation and small irrigation facilities. 
 
4. Background and authority for the subsidy
 
  MOF, SFA 
 
5. Legislation under which it is granted
 
 
MOF Circular Cai Ban Nong No.74 of 2001 
 G/SCM/N/123/CHN 
Page 54  
 
  6. Form of the subsidy
 
 
 Financial appropriations  
7. To whom and how the subsidy is provided
 
  The fund is provided to rural forestry area s. The MOF reviews the application for fund 
submitted by local governments and grants th e fund after approval of the application. 
 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 
2001 2002 2003 2004 Total 
100 100 100 100 400 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
  2001-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
XLVIII.   
1. Title of the subsidy programme
 
 
Fund for projects on collection, reservation and utilization of rainfall 
 2. Period covered by the notification
 
 
 2004  
3. Policy objective and/or purpose of the subsidy
 
  To support construction of rural irrigation in frastructure, improve rural living conditions and 
rural productivity 
 
4. Background and authority for the subsidy
 
 
 MOF, MOWR  
5. Legislation under which it is granted
 
 
MOF Circular Cai Nong No.138 of 2004  G/SCM/N/123/CHN 
 Page 55 
 
 
   
6. Form of the subsidy  
  Financial appropriations 
 
7. To whom and how the subsidy is provided
 
 
 The fund is provided to individuals, enterp rises or related organizations.  MOF and the 
MOWR jointly review the applica tion for fund submitted by the local governments.  After approval of 
the application, fund is granted 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 
2004 Total 
100 100 
 
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 2004-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 XLIX.   
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  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To support water-saving irrigation technolog y and the construction of areas using water-
saving irrigation 
 
4. Background and authority for the subsidy  
 
 MOF, MOWR 
 G/SCM/N/123/CHN 
Page 56  
 
  5. Legislation under which it is granted
 
 
MOF Circular Cai Yu No.388 of 2001  
 
6. Form of the subsidy  
  Interest discount 
 
7. To whom and how the subsidy is provided
 
 
 The fund is provided to individuals, enterpri ses or related organizations.  MOF and MOWR 
jointly review the application for fund submitted by local governments.  After approval of the 
application, fund is granted 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 
2001 2002 2003 2004 Total 
46.5 46.5 46.5 46.5 186 
  
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 1997-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 L.  
1. Title of the subsidy programme
 
 
Subsidies for national key construction projects on water and soil conservation 
 
2. Period covered by the notification  
 
 2001-2004 
  3. Policy objective and/or purpose of the subsidy
 
 
 To assist small scale farmland irrigation and water and soil conservation projects in rural areas 
  G/SCM/N/123/CHN 
 Page 57 
 
 
  4. Background and authority for the subsidy  
 
 MOF, MOWR  
5. Legislation under which it is granted
 
 
MOF Circular Cai Nong No.402 of 1987 
 
6. Form of the subsidy  
 
 Financial appropriations 
 7. To whom and how the subsidy is provided
 
 
 The fund is provided to enterprises or relate d organizations. MOF and MOWR jointly review 
the application for fund submitted by local government s. After approval of the application, fund is 
granted 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 
2001 2002 2003 2004 Total 
50 50 50 50 200 
  
9. Duration of the subsidy and/or any other time-limits attached to it  
  1983-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
 LI.  
1. Title of the subsidy programme
 
 
Special fund for projects on protection of natural forestry 
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To protect natural forestry resources and improve eco-environment  G/SCM/N/123/CHN 
Page 58  
 
  4. Background and authority for the subsidy
 
 
 MOF, SFA  
5. Legislation under which it is granted
 
 
MOF Circular Cai Nong No.151 of 2000 
 
6. Form of the subsidy  
 
 Financial appropriations 
 7. To whom and how the subsidy is provided
 
 
 The fund is provided to state owned forestry enterprises which are subject to timber production reduction or lumber ing ban to transfer and settle down the laid-off workers.  MOF reviews 
the application for fund submitted by local governme nts and grants the fund after approval of the 
application.  
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 
2001 2002 2003 2004 Total 
7146.95 7663.22 4966.52 4675.4 24452.09 
  
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 1998-2010 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
LII.  
1. Title of the subsidy programme
 
 
Cash subsidy for returning cultivated land to forests 
 
2. Period covered by the notification  
  2001-2004 
  G/SCM/N/123/CHN 
 Page 59 
 
 
  3. Policy objective and/or purpose of the subsidy  
 
 To improve the ecological environment, and to  subsidize the farmers who return cultivated 
land to forests for their necessary expenses such as medical care, education and daily expenses. 
 
4. Background and authority for the subsidy  
 
 MOF, SFA 
 5. Legislation under which it is granted
 
 
State Council Circular Guo Fa No.10 of 2002 
 
6. Form of the subsidy  
  Financial appropriations 
 
7. To whom and how the subsidy is provided
 
 
 The fund is provided to farmers who complete th e returning of cultivated land to forests and 
are examined as qualified.  MOF reviews the app lication for fund submitted by local governments and 
grants the fund after approval of the application. 
 
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 
2001 2002 2003 2004 Total 
361.82 1155.82 2165.82 2365.82 6049.28 
  
9. Duration of the subsidy and/or any other time-limits attached to it  
 
 2000-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 LIII.   
1. Title of the subsidy programme
 
  Compensation fund for forestry ecological benefits 
 G/SCM/N/123/CHN 
Page 60  
 
  2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To protect key forestry resources and ensure ecological security 
 
4. Background and authority for the subsidy
 
 
 MOF, SFA 
 5. Legislation under which it is granted
 
 
MOF Circular Cai Nong No.7 of 2001 (abolished); MOF Circular Cai Nong No.169 of 2004 
 
6. Form of the subsidy
 
 
 Financial appropriations 
 7. To whom and how the subsidy is provided
 
 
 The fund is provided to entities that manage  the key national commonweal forests.  MOF 
reviews the application for fund submitted by local governments and grants the fund after approval of 
the application. 
 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 
2001 2002 2003 2004 Total 
1000 1000 1000 2000 5000 
  
9. Duration of the subsidy and/or any other time-limits attached to it  
  2001-2003 as pilot project 
2004-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
  G/SCM/N/123/CHN 
 Page 61 
 
 
  LIV.  
1. Title of the subsidy programme  
 
Interest discount for loans for the purpose of  desertification prevention in forestry  
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
To encourage investment into the construction of  forestry ecological environment, to facilitate 
the implementation of key forestry projects such as protection of natural forest resources, the 
returning cultivated land to forests etc.  
 
4. Background and authority for the subsidy  
 
 MOF, SFA  
5. Legislation under which it is granted
 
 
MOF Circular Cai Nong No.137 of 2002 
 
6. Form of the subsidy  
 
 Interest discount 
 7. To whom and how the subsidy is provided
 
 
 The subsidy is provided to qualified forestry loans granted to individuals, enterprises and 
other organizations. MOF reviews the application for fund submitted by central and local authorities 
administering forestry and grants the fund after approving the application.  
 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 
2001 2002 2003 2004 Total 
56 192.10 213.67 114.697 576.467 
  
9. Duration of the subsidy and/or any other time-limits attached to it  
 
1986-2004 
 G/SCM/N/123/CHN 
Page 62  
 
  10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
LV.  
1. Title of the subsidy programme
 
 
 Subsidy for prevention from and control of pest and disease in forestry   
2. Period covered by the notification
 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
To strengthen the disease, pest and rat preven tion and control in forests, woods, seedling and 
bamboo forest.  
 
4. Background and authority for the subsidy  
  MOF, SFA 
 
5. Legislation under which it is granted
 
 
MOF Circular Cai Nong No.69 of 2002 
 6. Form of the subsidy
 
 
 Financial appropriations  
7. To whom and how the subsidy is provided
 
  The fund is provided to individual, enterprises and organizations engaged in forestry for the 
purpose of hazardous creature control.  An appli cation for fund is submitted by local government. 
MOF and SFA jointly review the application and determine the amount of the subsidy.  After 
approval of the application, the MOF grants the fund.  
 
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 
2001 2002 2003 2004 Total 
75 80 91 92 338 
   G/SCM/N/123/CHN 
 Page 63 
 
 
  9. Duration of the subsidy and/or any other time-limits attached to it  
 
1980-2004 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  Not available 
 
 LVI.  
 
1. Title of the subsidy programme
 
 
Subsidy for grass seed sowing by airplanes  
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
 
To support the airplane sowing of grass seed in major grassland areas 
 
4. Background and authority for the subsidy  
 
 MOF, MOA 
 5. Legislation under which it is granted
 
 
MOF Circular Cai Nong No.139 of 2004 
 
6. Form of the subsidy  
  Financial appropriations 
 
7. To whom and how the subsidy is provided
 
 
 The fund is provided to orga nizations which carry out airplane sowing of grass seeds.  MOF 
reviews the application for fund submitted by local governments and grants the fund after approval of 
the application. 
 G/SCM/N/123/CHN 
Page 64  
 
  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 
2001 2002 2003 2004 Total 
9 9 9 9 36 
  
9. Duration of the subsidy and/or any other time-limits attached to it  
 
1984-resent 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 
 Not available 
  
LVII.   
1. Title of the subsidy programme
 
 
Preferential tax policies for integrated circuit industry  
 2. Period covered by the notification
 
 
 2001-2004  
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 Circular Cai shui No.25 of 2000,  MOF Circular Cai shui No.70 of 2002, 
 MOF Circular Cai shui No.136 of 2002, 
 MOF Circular Cai shui No.140 of 2002,  MOF Circular Cai shui No.174 of 2004, 
 MOF Circular Cai shui No.40 of 2004 
 6. Form of the subsidy
 
 
 Preferential tax treatment   G/SCM/N/123/CHN 
 Page 65 
 
 
  7. To whom and how the subsidy is provided  
 
 (1) Investor of integrated circuit producing or  packaging enterprise who reinvests its share of 
profit obtained from the enterprise, after paying income  tax, directly into that enterprise by increasing 
its registered capital, or uses the profit as capital investment to establish other integrated circuit 
producing or packaging enterprises to operate for a period of not less than five years, shall be 
refunded forty per cent of the income tax already paid on the reinvested amount. 
 
(2) Domestic or foreign economic organizations investing its share of profit obtained inside 
China, after paying the income ta x, into integrated circuit produc ing or packaging enterprises located 
in the western regions as capital investment to operate for a period of not less than five years, shall be 
refunded eighty per cent of the income tax already paid on the reinvested amount. 
 
(3) Integrated circuit producing enterprises w ith investment more than RMB 8 billion or 
producing integrated circuit with a line width lesser th an 0.25 um shall enjoy the same preferential tax 
treatment as to encourage the foreign investors w ho invest into energy and transportation sectors. 
 
(4) Accredited integrated circuit producing ente rprises producing integrated circuit with a line 
width of 0.8 micron or less shall, from the year beginning to make profit, be exempted from income 
tax in the first and second years and allowed a fifty per cent reduction in the third to fifth years. 
 (5) The VAT of enterprises as normal taxpayers selling independently designed integrated 
circuit products shall be refunded the portion over six per cent from June 2000 till the end of year 
2001, and be refunded the portion over three per cent from year 2002.  This policy ceased on April 1 
2005. 
 
(6) The import VAT of domestically designed inte grated circuit with self-owned intellectual 
property rights when processed overseas, shall be refunded the portion over six per cent from July 1 
2000 till 1 October 2004. 
 (7) The imported raw materials for self producti on and expendables of the integrated circuit 
producing enterprises established in China with investment more th an RMB 8 billion or producing 
integrated circuit with a line width lesser than 0. 25 um shall be exempted from tariff and import VAT. 
 
(8) The imported integrated circuit produc ing technology and whole set of producing 
equipment, and the separately imported special equipm ent and apparatus to produce integrated circuit 
by the accredited integrated circuit producing enterp rises shall be exempt from tariff and import VAT.  
The above mentioned equipment and technologies sh all excluded 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. 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/123/CHN 
Page 66  
 
  9. Duration of the subsidy and/or any other time-limits attached to it
 
 
(1) 2002-2010;  (2) 2002-2010;  (3) 1 July 2000-present;  (4) 2002-present;   (5) 24 June 2000-1 April 2005;  (6) 1 July 200 0-1 October 2004;  (7) 1 July 2000-present;  
(8) 1 July 2000-present 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
LVIII.   
1. Title of the subsidy programme
 
 
Preferential tax policies for foreign invested enterprises and foreign enterprises which have 
establishments or place in China and are engaged in production or business operations purchasing 
domestically produced equipments . 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
 
To attract foreign investment and support technology renovation. 
 
4. Background and authority for the subsidy  
 
 MOF, SAT 
 5. Legislation under which it is granted
 
 
MOF Circular Cai Shui No.49 of 2000, SA T Circular Guo Shui Fa No.90 of 2000 
 
6. Form of the subsidy  
 
 Preferential tax treatment 
 
7. To whom and how the subsidy is provided  
 
 For the investment projects listed as encouraged  category in the “Catalogue for the Guidance 
of the Foreign Investment Industries” of foreign invested enterprises and foreign enterprises which 
have establishments or place in China engaged in production or business opera tions, forty per cent of 
the expenses on purchasing domestically produced e quipments within the total investment of the 
project, or beyond the total investment of the project but for the purpose of upgrading the existing 
equipments and crafts, shall be deducted from the incr ement of income tax of that year compared to 
the previous year.  Herein the “domestically pr oduced equipments” do not include those imported 
directly by other enterprises or those produced by processing trade and compensatory trade.  The  G/SCM/N/123/CHN 
 Page 67 
 
 
  deducted portion shall not exceed that year’s total in crement of income tax, and in the case where the 
total increment of income tax is less than forty pe r cent of such expenses, the exceeding part of the 
deductible expenses can be deducted from the next year’s increment of income tax.  Such postponement of deductibility shall not last for more than five 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 July 1999-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 
 Not available 
  
LIX.  
1. Title of the subsidy programme
 
 
 Preferential tax policies for domestic en terprises purchasing domestically produced 
equipments for technology upgrading purpose 
 
2. Period covered by the notification  
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
To encourage domestic investment and support the technology upgrading of enterprises 
 
4. Background and authority for the subsidy  
 
 MOF, SAT  
5. Legislation under which it is granted
 
 
MOF Circular Cai Shui No.290 of 1999  
 
6. Form of the subsidy  
 
Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
 For the technology upgrading projects which are co nsistent with the state industrial policies of 
the domestic enterprises, forty per cent of th e expenses on purchasing domestically produced 
equipments shall be deducted from th e increment of income tax of that year compared to the previous G/SCM/N/123/CHN 
Page 68  
 
  year.  In the case where the total increment of income  tax is less than forty per cent of such expenses, 
the exceeding part of the deductible expenses can be deducted from the next year’s increment of 
income tax. Such postponement of deductibility shall not last for more than five 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 July 1999-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  Not available 
 
 LX.  
1. Title of the subsidy programme
 
 
Exemption of tariff and import VAT for the imported technologies and equipments 
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
To reduce the investment cost of importing tec hnologies or equipments, and to attract foreign 
investment and to encourage domestic investment  
 
4. Background and authority for the subsidy  
 
 MOF, SAT, MOFCOM, General Administration of Customs (GCA) 
  5. Legislation under which it is granted
 
 
State Council Circular Guo Fa No.37 of 1997  
 
6. Form of the subsidy  
 
Preferential tax treatment   
  G/SCM/N/123/CHN 
 Page 69 
 
 
  7. To whom and how the subsidy is provided  
 
 For the foreign invested projects listed as en couraged category in the “Catalogue for the 
Guidance of the Foreign Investment Industries”, the equipments purchased for self-use within the 
total investment of the project, excluding those lis ted in the “Catalogue for the imported products not 
subject to tax exemption in foreign invested projects”, shall be exempted from tariff and import VAT.   
For the domestic invested projects listed in the “Catalogue of the Industries, Products and 
Technologies Particularly Encouraged by the State”,  the equipments purchased for self-use within the 
total investment of the project, and the technologi es, accessories and spare parts imported with the 
equipments as provided in the contract, excluding  those listed in the “Catalogue for the imported 
products not subject to tax exemption in domestic i nvested projects”, shall be exempted from tariff 
and import VAT.  For the projects using the loans provided by foreign governments or by international financial organizations, the equi pments purchased for sel f-use within the total 
investment of the projects, excluding those listed in the “Catalogue for the imported products not 
subject to tax exemption in foreign invested proj ects”, shall be exempted from tariff and import VAT. 
 
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-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
 Not available  
 
LXI.  
1. Title of the subsidy programme
 
 
Preferential tax policies for enterprises of grain or oil reserves  
 
2. Period covered by the notification  
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To ensure food security  
 
4. Background and authority for the subsidy  
 
  MOF, SAT  G/SCM/N/123/CHN 
Page 70  
 
  5. Legislation under which it is granted
 
 
MOF Circular Cai Shui Zi No.198 of 1999  
 
6. Form of the subsidy  
 
Preferential tax treatment 
 
7. To whom and how the subsidy is provided  
 
 The sales of grain and edible oil by the stat e-owned enterprises which carry reserves of grain 
and oils for food security purposes are exempted from VAT.  
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  
 
1999-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy  
  Not available 
 
 LXII.   
1. Title of the subsidy programme
 
 
Preferential tax policies for the imports of Ch ina Grain Reserves Corporation for the purpose 
of rotation of grain reserves  
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
  To secure food safety 
 
4. Background and authority for the subsidy
 
 
MOF, SAT, GCA 
  G/SCM/N/123/CHN 
 Page 71 
 
 
  5. Legislation under which it is granted  
 
MOF Circular Cai Shui No. 13 of 2001, MOF Circular Cai Shui No. 74 of 2004 
 
6. Form of the subsidy
 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
The collected import VAT on imported grain and oils imported by China Grain Reserves 
Corporation for the purpose of alternation or ro tation of reserves shall be fully refunded.  
 
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
 
  2001-2005 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 Not available 
 
 LXIII.   
1. Title of the subsidy programme
 
Preferential tax policies for the relief grain and disaster relief grain, compensation grain for returning cultivated land to forests and to gr ass land, and the grain rations for the migrants 
from the reservoir areas. 
 2. Period covered by the notification
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
To ensure the functioning of special social  responsibilities such as disasters relief and to 
realize social development objectives such as environmental protection 
 
4. Background and authority for the subsidy  
 
 MOF, SAT 
 G/SCM/N/123/CHN 
Page 72  
 
  5. Legislation under which it is granted
 
 
MOF Circular Cai Shui Zi No. 198 of 1999, SAT Circular Guo Shui Fa No. 131 of 2001   
 
6. Form of the subsidy
 
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
VAT on the relief grain and disaster relief grain,  compensation grain for returning cultivated 
land to forests and to grassland, and the grain ra tions for the migrants from the reservoir areas 
operated by grain 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
 
 
1999-present, and for compensation grain for returning cultivated land to forests and to 
grassland 2001-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 LXIV.   
1. Title of the subsidy programme
 
  Preferential tax treatment for tea sold in the border areas 
 
2. Period covered by the notification
 
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To ensure the supply to the border areas with minority ethnic groups residence.   
4. Background and authority for the subsidy
 
  MOF, SAT 
  G/SCM/N/123/CHN 
 Page 73 
 
 
  5. Legislation under which it is granted  
 
MOF Circular Cai Shui Zi No. 60 of 1994, MOF Circular Cai Shui No. 71 of 2001 
 
6. Form of the subsidy  
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The VAT on tea sold in the border areas produ ced by designated enterprises and distributed 
by designated distribution entities 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
 
 
 1994-2005  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
LXV.   
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  
 
 2001-2004 
 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, GCA 
 
5. Legislation under which it is granted  
 
 MOF Circular Cai Shui No. 63 of 2000 G/SCM/N/123/CHN 
Page 74  
 
   
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
Tariffs and import VAT on imported products w ithin 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
 
 
 2000-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 LXVI.   
1. Title of the subsidy programme
 
 
Preferential tax policies on imports of seeds (seedlings), breeding stock (fowl), fish fries 
(breeds) and non profit-making wild animals and plan ts kept as breeds during the period of the “Tenth 
Five-Year Plan”  
2. Period covered by the notification
 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
To introduce and promote improved breeds, to strengthen the protection of species resources, 
and to develop high-quality, productive and e fficient agriculture and forestry industries. 
 
4. Background and authority for the subsidy  
 
MOF, SAT, MOA, SFA 
 
5. Legislation under which it is granted  
 
 MOF Circular Cai Shui No. 130 of 2001  G/SCM/N/123/CHN 
 Page 75 
 
 
   
6. Form of the subsidy  
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The import VAT for imported seeds (seedlings), br eeding stock (fowl), fish fries (breeds) and 
non profit-making wild animals and plants kept as br eeds which are listed in the approved list of tax-
free items within the approved  quantity 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
 
  2001-2005 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
  
LXVII.   
1. Title of the subsidy programme
 
 
Preferential tax treatment for specimens of enda ngered wild animals and plants returned by 
the government of Hong Kong, China to the Office of the Administration of Import and Export of Endangered Species. 
 
2. Period covered by the notification
 
 
 September 2000 
 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 specimens of wild animals and plants. 
 
4. Background and authority for the subsidy  
 
MOF, GCA, SFA 
 G/SCM/N/123/CHN 
Page 76  
 
  5. Legislation under which it is granted
 
 
 MOF Circular Cai Shui No. 120 of 2000  
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
Tariff and import VAT on specimens  of endangered wild animals and plants of the approved 
species and approved quantity which are returned by the Agriculture, Fisheries and Conservation 
Department under the government of Hong Kong, Ch ina to 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  
 
 September 2000 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
 
 
LXVIII.   
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 govern ment of Hong Kong, China or the government of 
Macao, China to the Office of the Administrati on of Import and Export of Endangered Species 
 2. Period covered by the notification
 
 
 2002-2004  
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 as well as their products. 
  G/SCM/N/123/CHN 
 Page 77 
 
 
  4. Background and authority for the subsidy  
 
MOF, GCA, 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 Internationa l Trade in Endangered Species of 
Wild Fauna and Flora , returned by foreign governments, by th e government of Hong Kong, China, or 
by the government of Macao, 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
 
  2002-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
  
LXIX.   
1. Title of the subsidy programme
 
 
Preferential tax treatment for building material products produced with integrated utilization 
of resources  
2. Period covered by the notification
 
  2001-2004 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To encourage the integrated utilization of resources and protect the environment G/SCM/N/123/CHN 
Page 78  
 
   
4. Background and authority for the subsidy
 
  MOF, SAT 
 
5. Legislation under which it is granted
 
 
MOF Circular Cai Shui Zi No. 44 of 1995 , MOF Circular Cai Shui Zi No. 20 of 1996 
 6. Form of the subsidy
 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
 
The VAT on building material products made from waste residues 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
 
  1995-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available  
  
LXX.   
1. Title of the subsidy programme
 
 
Preferential tax treatment for other products pr oduced with integrated utilization of resources 
 2. Period covered by the notification
 
 
 2001-2004  
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  G/SCM/N/123/CHN 
 Page 79 
 
 
   
5. Legislation under which it is granted  
 
MOF Circular Cai Shui No. 198 of 2001, MOF Circular Cai Shui No. 25 of 2004 
 
6. Form of the subsidy  
 
 Preferential tax treatment 
 7. To whom and how the subsidy is provided
 
 
(1) The VAT on products produced with integrat ed utilization of resources such as electric 
power produced from urban waste shall be refunded.  (2) The VAT on electric power produced with 
wind power and some of the new-type wall-buildin g materials produced from coal gangue, slush, oil 
shale shall be levied at a rate reduced by one 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
 
 
 2001-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available  
 
 LXXI.   
1. Title of the subsidy programme
 
 
Preferential tax treatment for imported produc ts for scientific and educational purposes 
 
2. Period covered by the notification  
 
 2001-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
 To promote the development of scientific research and educational causes  
4. Background and authority for the subsidy
 
  MOF, GCA 
 G/SCM/N/123/CHN 
Page 80  
 
  5. Legislation under which it is granted
 
 
 State Council Circular Guo Han No. 3 of 1997  
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The tariff, import VAT and excise tax of products  directly used in sci entific research and 
education which are imported by scientific resear ch institutions and schools for non profit-making 
purposes 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-present 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
LXXII.   
1. Title of the subsidy programme
 
 
 Preferential tax treatment for imported produc ts exclusively used by the disabled people 
 2. Period covered by the notification
 
 
 2001-2004  
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, GCA 
  G/SCM/N/123/CHN 
 Page 81 
 
 
  5. Legislation under which it is granted  
 
 State Council Circular Guo Han No. 3 of 1997  
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The tariff, import VAT and excise 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-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 LXXIII.   
1. Title of the subsidy programme
 
  Preferential tax treatment for products for the disabled people 
 
2. Period covered by the notification
 
 
 2001-2004 
 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 Zi No. 60 of 1994 G/SCM/N/123/CHN 
Page 82  
 
   
6. Form of the subsidy
 
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
The VAT on artificial limbs, wh eelchairs, orthopaedic applia nces 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-present  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
  Not available 
 
 LXXIV.   
1. Title of the subsidy programme
 
  Preferential tax treatment to anti-HIV-AIDS medicine 
 
2. Period covered by the notification
 
 
 2002/2003-2004 
 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 Shui No. 181 of 2003, MOF Circular Cai Shui No. 160 of 2002 
  G/SCM/N/123/CHN 
 Page 83 
 
 
  6. Form of the subsidy  
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
 
(1) From 1 January 2002 to 31 December 2006, tariffs and import VAT and VAT in 
domestic circulation stages on imported anti-HIV-AIDS medicine shall be exempted.  (2) From 1 July 
2003 to 31 December 2006, VAT in production and circulation stages on domestically produced anti-HIV-AIDS medicine produced 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
 
  2002/2003-2006 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
LXXV.   
1. Title of the subsidy programme
 
 
 Refund of import VAT of raw copper materials 
 2. Period covered by the notification
 
 
 2003-2004  
3. Policy objective and/or purpose of the subsidy
 
  To promote technology upgrading of enterprises 
 
4. Background and authority for the subsidy
 
 
 MOF, SAT 
 5. Legislation under which it is granted
 
 
MOF Circular Cai Shui No. 81 of 2003, MOF Circular Cai Guan Shui No. 12 of 2005 
 G/SCM/N/123/CHN 
Page 84  
 
  6. Form of the subsidy
 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
 
Thirty per cent of import VAT on copper con centrate, waste copper and unrefined copper 
imported within the approved quan titative scope by copper refine ries with production or refining 
capacity of electrolytic copper over 30,000 tons a nd which meet the criteria of environmental 
protection shall be refunded after collection. 
 
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
 
  2003-2005 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
LXXVI.   
1. Title of the subsidy programme
 
 
 Preferential tax treatment for casting and forging products 
 2. Period covered by the notification
 
 
 2003-2004  
3. Policy objective and/or purpose of the subsidy
 
 
To encourage the technology upgrading of enterp rises and the research and development of 
the casting and forging products 
 4. Background and authority for the subsidy
 
 
 MOF, SAT  
5. Legislation under which it is granted
 
  MOF Circular Cai Shui No. 96 of 2003 
  G/SCM/N/123/CHN 
 Page 85 
 
 
  6. Form of the subsidy  
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
 
From 1 January 2003 to 31 December 2005, the VAT on the casting and forging products 
which are used in producing machinery, manufactur ed and sold by the 284 specialized casting and 
forging enterprises listed in the annex to the Circular  shall be collected according to stipulations at 
first, and then thirty-five per cent of the actually collected VAT shall be refunded.  
 
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
 
  2003-2005 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
 LXXVII.   
1. Title of the subsidy programme
 
  Preferential tax treatment to dies products  
 
2. Period covered by the notification
 
 
 2003-2004 
 3. Policy objective and/or purpose of the subsidy
 
 
To encourage the technology upgrading of enterp rises and research and development of dies 
products 
 
4. Background and authority for the subsidy  
 MOF, SAT 
 
5. Legislation under which it is granted  
 
 MOF Circular Cai Shui No. 139 of 1998, MOF Circular Cai Shui No. 95 of 2003 
 G/SCM/N/123/CHN 
Page 86  
 
  6. Form of the subsidy
 
 
 Preferential tax treatment  
7. To whom and how the subsidy is provided
 
 
 From 1 January 2003 to 31 December 2005, the VAT on the dies products manufactured and 
sold by the 160 specialized dies manufactur ing enterprises listed in the annex to the Circular  shall be 
collected according to stipulations at first, and then seventy per cent of the actually collected VAT 
shall be refunded. 
 
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
 
  2003-2005 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
LXXVIII.   
1. Title of the subsidy programme
 
 
 Preferential tax treatment to numeric ally controlled machine tool products 
 2. Period covered by the notification
 
 
 2001-2004  
3. Policy objective and/or purpose of the subsidy
 
 
To encourage enterprises to conduct research and development of numerically controlled 
machine tool products 
 4. Background and authority for the subsidy
 
 
 MOF, SAT  
5. Legislation under which it is granted
 
 
MOF Circular Cai Shui No. 47 of 2000,  
MOF Circular Cai Shui No. 119 of 2001, 
MOF Circular Cai Shui No. 97 of 2003  G/SCM/N/123/CHN 
 Page 87 
 
 
   
6. Form of the subsidy  
  Preferential tax treatment 
 
7. To whom and how the subsidy is provided
 
 
From 1 January 1999 to 31 December 2005, the VAT on numerically controlled machine tool 
products produced and sold by cer tain numerically controlled machine tool manufacturing enterprises 
shall be refunded after collection.  
 
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
 
  1999-2005 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy
 
 
 Not available 
  
Note: 
1. The 12 border cities, counties or  towns refer to Heihe, Suifenhe in  Heilongjiang Province, Hunchun in 
Jilin Province, Manzhouli in Inner Mongolia Autonomous Region, Yining, Bole, Tacheng in Xinjiang Uygur 
Autonomous Region, Pingxiang, Dongxing in Guangxi Zhuang Autonomous Region, Wanting, Ruili and Hekou 
in Yunnan Province. 2. The costal economic open areas firstly refer to the 14 coastal open cities of Dalian, Qinhuangdao, 
Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, 
Zhanjiang, Beihai. In 1985 the Yangtze River Delta, the Pearl River Delta and the triangle area in south Fujian 
Province of Xiamen, Zhangzhou and Quanzhou were open to be included in the co stal economic open areas. In 
1988 the area was further expanded to the Liaodong Peninsula, Shandong Peninsular and etc. to include 153 
cities and counties in Tianjin Municipality, Hebei Provi nce, Liaoning Province, Jiangsu Province, Zhejiang 
Province, Fujian Province, Shandong Province and Guangxi Zhuang Autonomous Region. In 1990 the city of 
Jinan was open. In 1992 5 cities along the Yangtze river namely Chongqing, Yueyang, Wuhan, Jiujiang, Wuhu, 
6 provincial capital cities in border and coastal provin ces and autonomous regions namely Harbin, Changchun, 
Hohhot, Shijiazhuang, Nanning and Kunming and 11 provincial capital cities of inland provinces and 
autonomous regions namely Taiyuan, Hefei, Nanchang, Zhengzhou, Changsha, Chengdu, Guiyang, Xi’an, 
Lanzhou, Xining and Yinchuan began to implement the policies of the costal economic open areas. In 1993 the city of Huangshi along the Yangtze River also began to implement the policies of the costal economic open 
areas. 
3. The Three Gorges of Yangtze River Economic Z one 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 the Hubei Province, Wushan County, Wuxi County, Fengjie County, Yunyang G/SCM/N/123/CHN 
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  County, Kai County and Zhong County under the Wanxian City of Sichuan Province, Shizhu County under the 
Qianjiang Prefecture and Fengdu County, Wulong County under the Fuling Prefecture of the Sichuan Province, 
and Changshou County, Jiangbei County, Ba County and Jiangjin City under Chongqing Municipality. 4. The western regions refer to Chongqing Munici pality, Sichuan Province, Guizhou Province, Yunan 
Province, Tibet Autonomous Region, Shaanxi Province, Gansu Province, Ningxia Hui Autonomous Region, 
Qinghai Province, Xinjiang Uygur Autonomous Region, Inner Mongolia Autonomous Region, Guangxi Zhuang Autonomous Region. 
 
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