WORLD TRADE  
ORGANIZATION   
G/SCM/N/155/CHN 
G/SCM/N/186/CHN 21 October 2011 
 
(11-5253) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on S ubsidies and Countervailing Measures 
 
CHINA 
   The following communication, dated 20 October 2011, is being circulated at the request of 
the Delegation of China. 
 
_______________ 
 
 
 The following notification c onstitutes China's new and full notification of information on 
programmes granted or maintained at the centr al government level during the period from 2005 
to 2008.  
 
 Insofar as the notification is a transparency-ori entated obligation that, pursuant to Article 25.7 
of the SCM Agreement, does not prejudge either the legal status of the notified programmes under 
GATT 1994 and the SCM Agreement, the effects unde r the SCM Agreement or the nature of the 
programmes themselves, China has included certain programmes in this notification which arguably 
are not (or are not always) subsidies or specific subs idies subject to the notification obligation within 
the meaning of the SCM Agreement. 
 1. 
1. Title of the subsidy programme 
 
 Preferential tax policies for foreign-invested enterprises.   
 
2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To encourage foreign investment.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 2 
 
 
  4. Background and authority for the subsidy 
 
Ministry of Finance (MOF), State Administration of Taxation (SAT), Ministry of 
Commerce (MOFCOM).  
5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of Ch ina for Enterprises with Foreign Investment 
and Foreign Enterprises (1991); 
Rules for the Implementation of the Income Tax Law of the People's Republic of China for 
Enterprises with Foreign Investment and Foreign Enterprise (1991); 
State Council Circular Guo Fa No. 37 of 2000; 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007; 
MOF Circular Cai Shui No. 1 of 2008. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
  1) Any enterprise with foreign investment of a production nature to operate for a period 
of no less than 10 years shall, from the year beginning to make profit, be exempted from the 
enterprise income tax in the first and second year s and allowed a reduction by half in the third 
to the fifth years ("2 years of exemption and 3 years of reduction by half"); 
 2) Any foreign investor of an enterprise with foreign investment which reinvests its 
share of profit obtained from the enterprise dir ectly back into that enterprise to increase its 
registered capital, or uses the profit as capital investment to establish other enterprises with foreign investment to operate for a period of no  less than 5 years may be refunded 40 per cent 
of the income tax already paid on the reinvested amount; 
 3) For direct reinvestment in China by foreign investors for the establishment or 
expansion of export-oriented ente rprises or advanced technology enterprises, all the enterprise 
income tax that has been paid on the reinvested amount may be refunded; 
 4) Any foreign enterprise which has no est ablishment or place in China but derives 
profit, interest, rental, royalty and other inco me from sources in China, or which though 
having an establishment or a place in China, deri ves the said income in a way not effectively 
connected with such establishment or place, may, since 1 January 2000, be levied the 
enterprise income tax at the reduced rate of 10 per cent, however, the income tax of the profit 
that foreign investors make out of foreign invested enterprises shall all be exempted; 
 5) Income tax of the royalty received for the supply of technical know-how in scientific 
research, exploitation of energy resour ces, development of communications and 
transportation industries, agricultural, for estry and animal husbandry production, and the 
development of important technologies may be le vied at the reduced rate of 10 per cent.   G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 3 
 
 
  Where the technology supplied is advanced or the terms are favourable, the income tax may 
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 an y other time-limits attached to it 
 
 1) 1991 to the end of 2007, starting from 1 January 2008, enterprises registered before 
16 March 2007 for their establishment which are eligible for the preferential treatment of 
"2 years of exemption and 3 years of reduction by half" may continue to enjoy the treatment till its expiration on them;  among these enterprises,  for those that have not started to enjoy 
the treatment due to the fact that they have not begun to make profit, the starting year for 
them to enjoy the treatment shall be 2008 instead  of the year when they first begin to make 
profit; 
 2), 3) and 5) 1991 to the end of 2007;  
 4) 2000 to the end of 2007.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 2.  
1. Title of the subsidy programme 
 
 Preferential tax policies for foreign-invested export enterprises.   
 
2. Period covered by the notification 
 
 2005-2008.   
 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 Ch ina for Enterprises with Foreign Investment 
and Foreign Enterprises (1991);   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 4 
 
 
  Rules for the Implementation of the Income Tax Law of the People's Republic of China for 
Enterprises with Foreign Investment and Foreign Enterprises (1991); 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
MOF Circular Cai Shui No. 1 of 2008. 
 6. Form of the subsidy 
  Preferential tax treatment.    
7. To whom and how the subsidy is provided 
 
 Export-oriented foreign-invested enterprise wh ich in any year has an output value of all 
export products amounting to 70 per cent or more of the total output value of the products of the 
enterprise for that year may pay enterprise income ta x at the tax rate specified in the Income Tax Law 
of the People's Republic of China for Enterp rises with Foreign Investment and Foreign 
Enterprises (1991) reduced by half after the period  of enterprise income tax exemption or reduction 
that it enjoys has expired.  However, export-orie nted enterprises located in Special Economic Zones 
and economic and technological development zones a nd other such enterprises already subject to the 
reduced enterprise income tax rate of 15 per cent sh all pay enterprise income tax at the tax rate of 
10 per cent when qualified under th e above-mentioned conditions.  
 
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 an y other time-limits attached to it 
 
 1991 to the end of 2007.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 3.  
1. Title of the subsidy programme 
 
Preferential tax policies for foreign-invested en terprises engaged in agriculture, forestry or 
animal husbandry and foreign-invested enterprises established in remote underdeveloped areas.   
 2. Period covered by the notification 
  2005-2008.     G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 5 
 
 
  3. Policy objective and/or purpose of the subsidy 
 
 To encourage foreign investment in agriculture , forestry or animal husbandry, and in remote 
underdeveloped 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 Ch ina for Enterprises with Foreign Investment 
and Foreign Enterprises (1991); 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
 MOF Circular Cai Shui No. 1 of 2008. 
 6. Form of the subsidy 
  Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 Foreign-invested enterprises engaged in ag riculture, forestry or animal husbandry and 
foreign-invested enterprises established in remo te underdeveloped areas may, upon approval of their 
application by the competent department for ta x affairs under the State Council, be allowed a 
15 per cent to 30 per cent reduction of the amount of enterprise income tax payable for a period of 
another 10 years following the expiration of the period of enterprise income tax exemption or 
reduction that they enjoy in accordance with the In come Tax Law of the People's Republic of China 
for Enterprises with Foreign Investment and Foreign Enterprises (1991). 
 
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 an y other time-limits attached to it 
 
 1991 to the end of 2007.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 6 
 
 
  4.  
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 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To encourage foreign investment in infrastructure construction.  
4. Background and authority for the subsidy 
 
 MOF, SAT, MOFCOM. 
 
5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of Ch ina for Enterprises with Foreign Investment 
and Foreign Enterprises (1991); 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment and Foreign Enterprise (1991); 
State Council Circular Guo Fa No.13 of 1999; Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
  The enterprise income tax of foreign-i nvested enterprises engaged in energy and 
transportation infrastructure projects such as harbour and wharf projects may be levied at the reduced 
rate of 15 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.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 7 
 
 
  9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1999 to the end of 2007.  Starting from 1 Ja nuary 2008, eligible enterprises under this 
program registered before 16 March 2007 for their es tablishment were given a 5 year period to phase 
out the preferential tax treatment, i.e., in 2008, the applicable reduced enterprise income tax rate was 
18 per cent;  in 2009 it was 20 per cent;  in 2010 it was 22 per cent;  in 2011 it is 24 per cent;  and 
finally in 2012 the statutory enterprise income tax ra te of 25 per cent as stipulated in Law of the 
People's Republic of China on Enterprise Income Tax (2007) will be applied. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
5.  
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 
 
 2005-2008. 
 
3. Policy objective and/or purpose of the subsidy 
 
 To encourage foreign investment in to infrastructure construction.   
 4. Background and authority for the subsidy 
  MOF, SAT, MOFCOM.    
5. Legislation under which it is granted 
 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment and Foreign Enterprises (1991); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007. 
 6. Form of the subsidy 
  Preferential tax treatment.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 8 
 
 
  7. To whom and how the subsidy is provided 
 
Chinese-foreign equity joint ventures engaged in port and dock construction may be levied 
enterprise income tax at the reduced rate of 15 per cent;  where the period of operation is 15 years or 
more, the equity joint ventures may be exempt from enterprise income tax from the first year to the 
fifth year starting from the year beginning to make pr ofit and then subject to enterprise income tax at 
the rate reduced by half for the si xth year through the tenth year ("5 years of exemption and 5 years of 
reduction by half"). 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.    
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1999 to the end of 2007.  Starting from 1 Ja nuary 2008, eligible enterprises under this 
program registered before 16 March 2007 for their est ablishment were given a 5 year period to fulfil 
the transition from the preferential tax rate of 15 per cent to the statutory enterprise income tax rate of 
25 per cent as stipulated in Law of the People's Republic of China on Enterprise Income Tax (2007), 
i.e., in 2008, the applicable reduced enterprise income tax rate was 18 per cent;  in 2009 it was 
20 per cent;  in 2010 it was 22 per cent;  in 2011 it is 24 per cent;  and finally in 2012 the statutory enterprise income tax rate of 25 per cent will be applied;  enterprises eligible for the preferential 
treatment of "5 years of exemption and 5 years of reduction by half" may continue to enjoy the 
treatment till its expiration on them, among these enterprises, for those that have not started to enjoy the treatment due to the fact that they have not begun to make profit, the starting year for them to 
enjoy the treatment shall be 2008 instead of the y ear when they first begin to make profit.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
6.  1. Title of the subsidy programme 
 
Preferential tax policies for advanced technol ogy enterprises with foreign investment.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To encourage high and new technology indus trial development and enhance the technology 
progress.   G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 9 
 
 
  4. Background and authority for the subsidy 
 
 MOF, SAT, MOFCOM, Ministry of Science and Technology (MOST). 
 5. Legislation under which it is granted 
 
Rules for the Implementation of the Income Tax Law of the People's Republic of China for 
Enterprises with Foreign Investment and Foreign Enterprise (1991); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007).  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 Advanced technology enterprises with foreign investment which remain  advanced technology 
enterprises after the period of enterprise income ta x exemption or reduction has expired in accordance 
with the provisions of the Income Tax Law of the People's Republic of China for Enterprises with 
Foreign Investment and Foreign Enterprises (1991)  may for an additional 3 years pay enterprise 
income tax at the tax rate specified in the Inco me Tax Law of the People's Republic of China for 
Enterprises with Foreign Investment and Fore ign Enterprises (1991) reduced by half.   
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.    
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1991 to the end of 2007. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
7.  
1. Title of the subsidy programme 
 
 Preferential tax policies for enterprises with foreign investment in the border cities.   
 2. Period covered by the notification 
  2005-2008.    G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 10 
 
 
  3. Policy objective and/or purpose of the subsidy 
 
 To encourage foreign investment in border cities and expand their ope ning up 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; 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 The enterprise income tax of the foreign-inv ested enterprises of production nature established 
in 12 border cities, counties or towns (note 1) may be levied at a reduced rate of 24 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 an y other time-limits attached to it 
 
 1992 to the end of 2007.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 8.  
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.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 11 
 
 
  2. Period covered by the notification 
 
 2005-2008.   
 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 Tax Law of the People's Republic of China for 
Enterprises with Foreign Investment and Foreign Enterprise (1991); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
  1) The enterprise income tax of the ente rprises with foreign investment recognized as 
high or new technology enterprises and establis hed in the State high or new technology 
industrial development zones may be levi ed at a reduced rate of 15 per cent;  
 2) The Chinese-foreign equity joint vent ures recognized as high or new technology 
enterprises and established in the State high or new technology industrial development zones 
of which the operation period is 10 years or mo re may be exempt from the enterprise income 
tax in the first and second years starting from th e year when they begin to make profit.  
Foreign-invested enterprises established in the hi gh or new technology industrial development 
zones which are located in the Special Economic Zones and the economic and technological 
development zones shall be governed by the pr eferential tax policies concerning the Special 
Economic Zones and the economic and t echnological development zones.   
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.    
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1) 1991 to the end of 2007;  G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 12 
 
 
   2) 1991 to the end of 2007; starting from 1 January 2008, enterprises registered before 
16 March 2007 for their establishment which are el igible for the prefer ential treatment may 
continue to enjoy the treatment till its expira tion on them;  among these enterprises, for those 
that have not started to enjoy the treatment due to the fact that they have not begun to make profit, the starting year for them to enjoy the treatment shall be 2008 instead of the year when 
they first begin to make profit.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
9. 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 tec hnology industrial development zones.   
 
2. Period covered by the notification 
 
 2005-2008.   
 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 
  Provisional Regulations of the People's Republic of China on Enterprise Income Tax (1993);  Rules for the Implementation of the Provisi onal Regulations of the People's Republic of 
China on Enterprise Income Tax (1994); 
 MOF Circular Cai Shui Zi No.001 of 1994;  State Council Circular Guo Fa No. 6 of 2006; 
 MOF Circular Cai Shui No.88 of 2006; 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
 Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 13 
 
 
  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 ne w technology industrial development zones may 
be levied at a reduced rate of 15 per cent;  
 2) The enterprise income tax of the ente rprises recognized as high or new technology 
enterprises established in the State high or ne w technology industrial development zones may 
be exempt in the first and second years from the year beginning production (from the year 
beginning to make profit after 1 January 2006).   
 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 an y other time-limits attached to it 
 
 1) 1991 to the end of 2007;   
 2) 1991 to the end of 2007, starting from 1 January 2008, enterprises registered before 
16 March 2007 for their establishment which are el igible for the prefer ential treatment may 
continue to enjoy the treatment till its expira tion on them;  among these enterprises, for those 
that have not started to enjoy the treatment due to the fact that they have not begun to make profit, the starting year for them to enjoy the treatment shall be 2008 instead of the year when 
they first begin to make profit.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.  
 
10. 1. Title of the subsidy programme 
 
Preferential tax policies for high or new technology enterprises.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
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. G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 14 
 
 
  5. Legislation under which it is granted 
 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007). 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
  The enterprise income tax of the enterprises recognized as high or new technology enterprises 
shall be levied at a reduced rate of 15 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 an y other time-limits attached to it 
 
 1 January 2008 to present.  
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
11. 
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 
 
 2005-2008.   
 
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, MOST.  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 15 
 
 
  5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of Ch ina for Enterprises with Foreign Investment 
and Foreign Enterprises (1991); 
Rules for the Implementation of the Income Ta x Law of the People's Republic of China for 
Enterprises with Foreign Investment and Foreign Enterprises (1991); 
SAT Circular Guo Shui Fa No.139 of 1995; SAT Circular Guo Shui Fa No.135 of 2003; 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No.39 of 2007; 
State Council Circular Guo Fa No.40 of 2007. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 1) The income tax on enterprises with fo reign investment established in Shenzhen, 
Zhuhai, Shantou, Xiamen and Hainan Special  Economic Zones and foreign enterprises which 
have establishments or places in these Speci al Economic Zones enga ged in production or 
business operations shall be levied at  the reduced rate of 15 per cent;  
 2) The income tax on enterprises with foreign investment of a production nature 
established in the old urban districts of cities where the above-mentioned zones are located 
shall be levied at the reduced rate of 24 per cent;  
 3) The income tax on enterprises with foreign investment of a production nature 
established in the old urban districts of cities where the above-mentioned zones are located 
and which are engaged in the following project s:  (a) technology-intensive or knowledge-
intensive projects, with major products enlisted in the "Catalogue of High and New Technology Products of China" promulgate d by MOST and the sales revenue of these 
products of a year accounting for over 50 per cen t of the total annual sales revenue of the 
enterprise of that year;  (b) projects with  foreign investments of over US$30 million and 
having long periods for return on investmen t;  and (c) energy resources, transportation and 
port construction projects, shall be levied  at the reduced rate of 15 per cent;  
 4) Enterprises with foreign investment established in the Hainan Special Economic 
Zones and engaged in infrastructure projects such as airports, harbours, docks, highways, 
railways, power stations, coal mines and wate r conservation projects, and enterprises with 
foreign investment engaged in the development of and operations in agriculture where the 
period of operations is fifteen years or more, sh all be exempt from enterprise income tax from 
the first year to the fifth years starting from the year beginning to make profit and subject to 
enterprise income tax at a rate reduced by half for the sixth year through the tenth year ("5 years of exemption and 5 years of reduction by half");   
 5) Foreign investors who reinvest the pr ofit made from the enterprises established in 
Hainan Special Economic Zones into the in frastructure construction projects of, or G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 16 
 
 
  agricultural development enterprises in, the Ha inan Special Economic Zones may be refunded 
the entire enterprise income tax that h as been paid on the reinvested amount;  
 6) Enterprises registered after 1 January  2008 for their establishment in Shenzhen, 
Zhuhai, Shantou, Xiamen and Hainan Special  Economic Zones and recognized as high or new 
technology enterprises may be exempt from en terprise income tax for the first and second 
years starting from the year receiving income from their operation or production, and subject 
to enterprise income tax at the statutory rate of  25 per cent reduced by half from the third year 
through the fifth year.   
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.    
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1) and 3) 1984 to the end of 2007, starti ng from 1 January 2008, enterprises registered 
before 16 March 2007 for their establishment a nd eligible under this program for the 
15 per cent preferential enterprise income tax rate  were given a 5 year period to fulfil the 
transition from the preferential tax rate of 15 pe r cent to the statutory enterprise income tax 
rate of 25 per cent as stipulated in Law of the People's Republic of China on Enterprise 
Income Tax (2007), i.e., in 2008, the applicab le reduced enterprise income tax rate was 
18 per cent;  in 2009 it was 20 per cent;  in 2010 it was 22 per cent;  in 2011 it is 24 per cent;  
and finally in 2012 the statutory enterprise inco me tax rate of 25 per cent will be applied;  
 2) 1984 to the end of 2007;   4) 1984 to the end of 2007, starting from 1 January 2008, enterprises registered before 
16 March 2007 for their establishment and eligib le under this program for the preferential 
treatment of "5 years of exemption and 5 years of reduction by half" may continue to enjoy the treatment till its expiration on them, among these enterprises, for those that have not 
started to enjoy the treatment due to the fact that they have not begun to make profit, the 
starting year for them to enjoy the treatment sh all be 2008 instead of the year when they first 
begin to make profit;   
 5) 1991 to the end of 2007;  
 6) 1 January 2008 to present.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 12. 
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 a nd technological development zones.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 17 
 
 
  2. Period covered by the notification 
 
 2005-2008.   
 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, MOST. 
 5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of Ch ina for Enterprises with Foreign Investment 
and Foreign Enterprises (1991); 
 Rules for the Implementation of the Income Tax Law of the People's Republic of China for 
Enterprises with Foreign Investment and Foreign Enterprises (1991); 
SAT Circular Guo Shui Fa No.139 of 1995; 
SAT Circular Guo Shui Fa No.135 of 2003; 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No.39 of 2007. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
1) The income tax on enterprises with fo reign investment of a production nature 
established in the economic and technological development zones shall be levied at the 
reduced rate of 15 per cent;  
2) The income tax on enterprises with fo reign investment of a production nature 
established in the coastal economic open areas (note 2) and in the old urban districts of cities 
where the economic and technological development zones are located shall be levied at the 
reduced rate of 24 per cent;  
3) The income tax on the enterprises with foreign investment of a production nature 
established in the coastal economic open areas a nd in the old urban districts of cities where 
the economic and technological development zon es are located and which are engaged in the 
following projects:  (a) technology-intensive or knowledge-intensive projects, with major 
products enlisted in the "Catalogue of Hi gh and New Technology Products of China" 
promulgated by MOST and the sales revenue of these products of a year accounting for over 
50 per cent of the total annual sales revenue of th e enterprise of that year;  (b) projects with 
foreign investments of over US$30 million and havi ng long periods for return on investment;  G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 18 
 
 
  and (c) energy resources, transportation and port co nstruction projects, shall be levied at the 
reduced rate of 15 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 an y other time-limits attached to it 
 
 1) and 3) 1984 to the end of 2007, starti ng from 1 January 2008, enterprises registered 
before 16 March 2007 for their establishment a nd eligible under this program for the 
15 per cent preferential enterprise income tax rate  were given a 5 year period to fulfil the 
transition from the preferential tax rate of 15 pe r cent to the statutory enterprise income tax 
rate of 25 per cent as stipulated in Law of the People's Republic of China on Enterprise 
Income Tax (2007), i.e., in 2008, the applicab le reduced enterprise income tax rate was 
18 per cent;  in 2009 it was 20 per cent;  in 2010 it was 22 per cent;  in 2011 it is 24 per cent;  
and finally in 2012 the statutory enterprise inco me tax rate of 25 per cent will be applied; 
 2) 1984 to the end of 2007.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 13.  
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 
  2005-2008.    
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.  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 19 
 
 
  5. Legislation under which it is granted 
 
Income Tax Law of the People's Republic of Ch ina for Enterprises with Foreign Investment 
and Foreign Enterprises (1991); 
Rules for the Implementation of the Income Tax Law of the People's Republic of China for 
Enterprises with Foreign Investment and Foreign Enterprises (1991); 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No.39 of 2007; State Council Circular Guo Fa No.40 of 2007.  
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
  1) The income tax on enterprises with foreign investment of a production nature 
established in Pudong area of Shanghai as well as enterprises with foreign investment 
engaged in energy resources and transport construction projects such as airport, ports, 
railways, highways and power stations shall be levied at the reduced rate of 15 per cent.  
Enterprises with foreign investment engaged in  energy resources and transport construction 
projects such as airport, ports, railways, hi ghways and power stations where the period of 
operation is 15 years or more may also be exempt from enterprise income tax from the first year to the fifth year starting from the year be ginning to make profit and then subject to the 
enterprise income tax rate reduced by half for the sixth year through the tenth year ("5 years 
of exemption and 5 years of reduction by half");   
 2) Enterprises registered after 1 January 2008 in Pudong area of Shanghai for their 
establishment which are recognized as high or  new technology enterprises may be exempt 
from enterprise income tax for the first and second years starting from the year receiving 
income from their operation or production, and subject to enterprise income tax at the 
statutory rate of 25 per cent reduced by half from the third year through the fifth year. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.   
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1) 1991 to the end of 2007, starting from 1 January 2008, eligible enterprises under this 
program registered before 16 March 2007 for th eir establishment were given a 5 year period 
to fulfil the transition from the preferential tax rate of 15 per cent to the statutory enterprise 
income tax rate of 25 per cent as stipulated in Law of the People's Republic of China on 
Enterprise Income Tax (2007), i.e., in 2008, the a pplicable reduced enterp rise income tax rate 
was 18 per cent;  in 2009 it was 20 per cent;  in 2010 it was 22 per cent;  in 2011 it is 24 per G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 20 
 
 
  cent;  and finally in 2012 the statutory enterp rise income tax rate of 25 per cent will be 
applied;  enterprises eligible for the preferen tial treatment of "5 years of exemption and 
5 years of reduction by half" may continue to enjoy the treatment till its expiration on them, 
among these enterprises, for those that have not started to enjoy the treatment due to the fact that they have not begun to make profit, the st arting year for them to enjoy the treatment shall 
be 2008 instead of the year when they first begin to make profit;   
2) 1 January 2008 to present. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 14.  
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 
  2005-2008.    
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; 
Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No.39 of 2007. 
 6. Form of the subsidy 
  Preferential tax treatment.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 21 
 
 
  7. To whom and how the subsidy is provided 
 
 1) The income tax on enterprises with foreign investment of a production nature 
established in the Three Gorges of Yangtze River Economic Zone (note 3) shall be levied at the reduced rate of 24 per cent;  
 2) The income tax on enterprises 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 othe r projects encouraged by the State, shall be 
levied at the reduced rate of 15 per cent; 
 3) The income tax on the enterprises with foreign investment of a production nature 
established in the old urban districts of the open cities along the Yangtze River such as 
Yichang, Wanxian and Fuling and etc., shall be levied at the reduced rate of 24 per cent;  
 4) Among the enterprises mentioned in item 3), those engaged in technology-intensive 
or knowledge-intensive projects, or projects with foreign investments of over US$30 million 
and having long periods for return  on investment, or energy r esources, transportation and port 
construction projects shall be levied at the reduced rate of 15 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 an y other time-limits attached to it 
 
 1) and 3) 1995 to the end of 2007;  2) and 4) 1995 to the end of 2007, starti ng from 1 January 2008, enterprises registered 
before 16 March 2007 for their establishment a nd eligible under this program for the 
15 per cent preferential enterprise income tax rate  were given a 5 year period to phase out the 
preferential tax treatment, i.e., in 2008, the app licable reduced enterprise income tax rate was 
18 per cent;  in 2009 it was 20 per cent;  in 2010 it was 22 per cent;  in 2011 it is 24 per cent;  
and finally in 2012 the statutory enterprise income tax rate of 25 per cent as stipulated in Law of the People's Republic of China on Enterpri se Income Tax (2007) will be applied.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
15.  
1. Title of the subsidy programme 
 
Preferential tax policies in the western regions.   
 2. Period covered by the notification 
  2005-2008.    G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 22 
 
 
  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 releva nt 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; Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
State Council Circular Guo Fa No. 39 of 2007; 
MOF Circular Cai Shui No.1 of 2008; 
MOF GAC SAT Announcement No.43 of 2008. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
1) The income tax on enterprises, domestic  and foreign-invested, established in the 
western regions (note 4) which are engaged in industries encouraged by the State shall be 
levied at the reduced rate of 15 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 Particul arly Encouraged by the State", and the 
enterprises must have the items included in the Catalogue as its major business which should 
account for over 70 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 lis ted in the "Catalogue for the Guidance of the 
Advantageous Industries in Central and Wester n Regions for Foreign Investment", and the 
enterprises must have the items as listed in th e two Catalogues as its major business which 
should account for over 70 per cent of total revenue.   
2) The enterprises, domestic and foreign-invested, which are newly established in the 
western regions and engaged in business su ch as transportation, electricity, water 
conservation and etc., of which the revenue accounts for over 70 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 fore ign-invested enterprises with the period of 
operations of ten years or more, exempt from the income tax for the first and second years  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 23 
 
 
  and subject to enterprise income tax at the rate reduced by 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 retu rning 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 highways in w estern regions is exempt from the farmland 
occupation tax.   
5) The domestic and the foreign-invested en terprises established in the western regions 
and engaged in the encouraged industries resp ectively as mentioned above in item 1) are 
exempt from the tariff from 2001 to present and import VAT from 2001 to 31 December 2008 
for the imported equipments for self uses with in the total amount of the capital invested, 
except for those listed in "Catalogue for the impor ted 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 1 January 2000, the foreign-invested enterprises established in 
nineteen provinces, autonomous regions and municipalities directly under the Central 
Government in central and western regions, namely Shanxi Province, Jilin Province, 
Heilongjiang Province, Anhui Province, Jiangxi Province, Henan Province, Hubei Province, 
Hunan Province, Chongqing Municipality, Si chuan Province, Guizhou Province, Yunan 
Province, Tibet Autonomous Region, Shaanxi Province, Gansu Province, Ningxia Hui 
Autonomous Region, Qinghai Province, Xin jiang Uygur Autonomous Region, Inner 
Mongolia Autonomous Region, Guangxi Zhuang Autonomous Region, which are engaged in 
the industries encouraged by the State as en listed in the "Catalogue  for the Guidance of 
Foreign Investment Industries" as well as engage d in the advantageous industries and projects 
approved by the State Council, shall be imposed  the income tax at the reduced rate of 
15 per cent for another three year following the expiration of the period for "two years 
exemption and three years reduction by half". 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.   
 9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1) 2001 to 2010;  2) 2001 to present; 
 3) 2001 to 17 February 2006 or earlier where applicable; 
 4) 2001 to the end of 2007;  5) 2001 to present for exemption of tariff, and 2001 to 31 December 2008 for exemption 
of import VAT; 
 6) 2000 to the end of 2007.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 24 
 
 
  16. 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises in Binhai New Area of Tianjin.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To encourage the development and opening up of Binhai New Area of Tianjin. 
 4. Background and authority for the subsidy 
  MOF, SAT.  
5. Legislation under which it is granted 
 
State Council Circular Guo Fa No. 20 of 2006; 
 MOF Circular Cai Shui No.130 of 2006. 
 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 in Binhai New Area of Tianjin may be levied at a reduced rate of 15 per cent; 
2) The depreciation period of the fixed assets of enterprises in Binhai New Area of 
Tianjin (excluding houses and buildings) may be  shortened by at most 40 per cent when the 
taxable income is calculated.    
 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 an y other time-limits attached to it 
 
 1) and 2) 1 July 2006 to 31 December 2007. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 25 
 
 
  17. 
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises estab lished in the poverty stricken areas.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
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.   
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994; 
 MOF Circular Cai Shui No.1 of 2008.  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 The income tax of the enterprises newly est ablished in the old revolution base areas during 
the revolution era, areas with ethnic groups reside nce, remote areas and poverty stricken areas as 
designated by the State 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.    
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1994 to the end of 2007.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 26 
 
 
  18. 
1. Title of the subsidy programme 
  Fiscal fund to alleviate poverty.    
2. Period covered by the notification 
 
 2005-2008.   
 
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 Leading Group for Poverty Alleviation of the State Council.  
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.    
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 
2005 2006 2007 2008 
12,900 13,600 14,300 16,600 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1980 to present.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 27 
 
 
  10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
19. 
1. Title of the subsidy programme 
 
Preferential tax treatment for public infrastructur e projects that are particularly supported by 
the State.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To promote the construction of infrastructure projects. 
 4. Background and authority for the subsidy 
  MOF, SAT.  
5. Legislation under which it is granted 
 
 Law of the People's Republic of China on Enterprise Income Tax (2007); 
 Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007);  MOF Circular Cai Shui No.46 of 2008. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
 
Enterprise income tax on the income derived by an enterprise from investment in and 
operation of public infrastructure projects such as harbours, wharves, airports, railways, highways, 
urban public transportation, electric power and water conservancy projects as specified in the 
Catalogue of Public Infrastructure Projects for Pref erential Enterprise Income Tax Treatment shall be 
exempted from the first to the third year beginning from the year in which the first production and 
operation income is derived from the projects, and such  tax shall be reduced by half from the fourth to 
the sixth year.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 28 
 
 
  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 an y other time-limits attached to it 
 
 1 January 2008 to present.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
20. 
1. Title of the subsidy programme 
 
Preferential tax treatment for projects for environmental protecti on, water and energy 
conservation.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To protect the environment and encourage the recycle of resources.  
 4. Background and authority for the subsidy 
  MOF, SAT.  
5. Legislation under which it is granted 
 
 Law of the People's Republic of China on Enterprise Income Tax (2007); 
 Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007);  MOF Circular Cai Shui No.48 of 2008. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
  1) Enterprise income tax on the income derived by an enterprise from the qualified 
projects of environmental protection or energy  and water conservation such as projects of  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 29 
 
 
  public sewage treatment, public refuse treatment , comprehensive development and utilization 
of methane, technological upgrading for energy  conservation and discharge reduction, and 
seawater desalination and etc. shall be exempted  from the first to the third year beginning 
from the year in which the first production and operation income is derived from the projects, and such tax shall be reduced by half from the fourth to the sixth year; 
 2) Where an enterprise purchases and actually uses the equipment specially designed for 
environmental protection, energy and wate r conservation, safe production and etc. as 
specified in the Catalogue of Special Envir onmental Protection Equipment for Preferential 
Enterprise Income Tax Treatment, the Catalogue  of Special Energy and Water Conservation 
Equipment for Preferential Enterprise Income  Tax Treatment and the Catalogue of Special 
Safe Production Equipment for Preferential Ente rprise Income Tax Treatment, 10 per cent of 
its investment in the special equipment may be credited against its tax payable for the current 
year, and any amount that is not credited in that year may be carried forward and credited in the following five tax years. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.    
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1 January 2008 to present. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
21. 
1. Title of the subsidy programme 
 
 Preferential tax policies for enterprises which utilize the waste materials.   
 2. Period covered by the notification 
  2005-2008.    
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/155/CHN 
G/SCM/N/186/CHN Page 30 
 
 
  5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994; 
 MOF Circular Cai Shui No.1 of 2008.  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
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 production 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 an y other time-limits attached to it 
 
 1994 to the end of 2007.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 22. 
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 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
 To encourage the integrated utilization of resources and protect the environment. 
 
4. Background and authority for the subsidy 
 
 MOF, SAT.  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 31 
 
 
  5. Legislation under which it is granted 
 
 Law of the People's Republic of China on Enterprise Income Tax (2007); 
 Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
 MOF Circular Cai Shui No.47 of 2008. 
 6. Form of the subsidy 
  Preferential tax treatment.    
7. To whom and how the subsidy is provided 
 
If an enterprise uses the resources specified in  the Catalogue of Comprehensive Use of 
Resources for Preferential Enterprise Income Tax Treat ment as its main raw materials to manufacture 
products enlisted in the same Catalogue that meet  relevant national and in dustrial standards, its 
income thus derived shall be included in the to tal taxable income of the enterprise at a reduced 
amount of 90 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 an y other time-limits attached to it 
 
 1 January 2008 to present. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 
23. 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 
 
2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To encourage the integrated utilization of resources and protect the environment.  G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 32 
 
 
  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 an y other time-limits attached to it 
 
 1995 to the end of 2008.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 24. 
1. Title of the subsidy programme 
 
Preferential tax treatment for products produced with integrated utilization of resources.   
 
2. Period covered by the notification 
 
 2005-2008.   
 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/155/CHN 
 G/SCM/N/186/CHN 
 Page 33 
 
 
  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 such product produced with in tegrated utilization of resources as electric 
power produced from urban waste shall be refunded; 2) The VAT on electric power produced with wind power and certain new-type wall-
building materials produced from coal gangue, slush,  oil shale shall be le vied at the statutory 
rate reduced by half. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.   
 9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1) and 2) 2001 to 30 June 2008.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 25. 
1. Title of the subsidy programme 
 
Preferential tax treatment for renewable resources.   
 
2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
 
To encourage integrated utilization of rene wable resources and protect the environment. 
 
4. Background and authority for the subsidy 
 
 MOF, SAT. G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 34 
 
 
  5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 78 of 2001; 
MOF Circular Cai Shui No. 157 of 2008. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
For enterprises purchasing waste materials as production materials, 10 per cent of the amount 
of the sales invoices for purchasing the waste materials may be deducted from the input 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 an y other time-limits attached to it 
 
 1 May 2001 to the end of 2008.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 26. 
1. Title of the subsidy programme 
 
 Special fund for the industrialization of wind power equipment.   
 
2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
 
  To promote the research and development of wind power industry and use of renewable energy. 
 
4. Background and authority for the subsidy 
 
 MOF.  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 35 
 
 
  5. Legislation under which it is granted 
 
 MOF Circular Cai Jian No.476 of 2008. 
 6. Form of the subsidy 
  Financial appropriations.    
7. To whom and how the subsidy is provided 
 
 The fund is provided for the research and de velopment of wind power equipment of domestic 
or domestically controlled enterprises manufacturing equipment and components for the wind power 
industry.  The first 50 sets of megawatt wind tu rbines and their components newly developed and 
industrialized may receive the support as per RMB 600/ kilowatt, and the support is provided half and 
half between turbine and key component manufacturers.  
 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 
2005 2006 2007 2008 
none none none 45 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 August 2008 to the end of 2009. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
27. 
1. Title of the subsidy programme 
 
 Preferential tax policies for Clean Development Mechanism.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
 To reduce the emission of greenhouse gas (GHG).  G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 36 
 
 
  4. Background and authority for the subsidy 
 
 MOF, SAT. 
 5. Legislation under which it is granted 
  MOF Circular Cai Shui No.30 of 2009.    
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
1) Certain types of income derived by th e China Clean Development Mechanism Fund 
(CDMFUND) which are listed in the Circular shall be exempted from enterprise income tax;  
2) The portion of gains derived from the tran sfer of greenhouse gas emission reductions 
by CDM project enterprises which are remitted to the Chinese government shall be deducted 
from the taxable income; 
3) The income derived by CDM project enterprises from certain HPC, PFC and 
N20 projects is eligible for enterprise income tax exemption from the first year to the third 
year and a 50 per cent reduction in enterprise in come tax from the fourth year to the six year, 
starting from the year in which the income from the transfer of greenhouse gas emission 
reductions is first received.  
 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 an y other time-limits attached to it 
 
 1), 2) and 3) 1 January 2007 to present.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
28. 1. Title of the subsidy programme 
  Preferential tax policies for enterprises making little profits.    
2. Period covered by the notification 
 
 2005-2008.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 37 
 
 
  3. Policy objective and/or purpose of the subsidy 
 
 To reduce the burden of the enterprises making little profits and to maintain job opportunities. 
 4. Background and authority for the subsidy 
  MOF, SAT.  
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.009 of 1994; 
 MOF Circular Cai Shui No.1 of 2008. 
 6. Form of the subsidy 
  Preferential tax treatment.    
7. To whom and how the subsidy is provided 
 
1) The income tax of enterprises whose annual taxable income is less than 
RMB 30,000 may be levied at a reduced rate of 18 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 27 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 an y other time-limits attached to it 
 
 1) and 2) 1994 to the end of 2007. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
29. 
1. Title of the subsidy programme 
 
 Preferential tax policies for enterprises making little profits.   
 2. Period covered by the notification 
  2005-2008.    G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 38 
 
 
  3. Policy objective and/or purpose of the subsidy 
 
 To reduce the burden of the enterprises making little profits and to maintain job opportunities. 
 4. Background and authority for the subsidy 
  MOF, SAT.  
5. Legislation under which it is granted 
 
 Law of the People's Republic of China on Enterprise Income Tax (2007); 
 Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007).  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
The income tax of qualified small enterprises with low profits may be levied at a reduced rate 
of 20 per cent.  The above-mentioned qualified enterp rises refer to those engaged in industries which 
are not restricted or prohibited by the State and meeting the following conditions: 
 
 (a) industrial enterprises, whose annual ta xable income does not exceed RMB 300,000, 
the number of employees does not exceed 100 persons, and the total amount of assets does 
not exceed RMB 30,000,000;  and 
 (b) other enterprises, whose annual taxabl e income does not exceed RMB 300,000, the 
number of employees does not exceed 80 persons , and the total amount of assets does not 
exceed RMB 10,000,000.   
 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 an y other time-limits attached to it 
 
 1 January 2008 to present. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 39 
 
 
  30. 
1. Title of the subsidy program 
  Preferential tax policies for township enterprises.    
2. Period covered by the notification 
 
 2005-2008.   
 
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; 
 MOF Circular Cai Shui No.1 of 2008.  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 10 per cent of the enterprise income tax payabl e by township enterpri ses may be exempted to 
subsidize their 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 an y other time-limits attached to it 
 
1994 to the end of 2007.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 40 
 
 
  31.  
1. Title of the subsidy program 
  Preferential tax policies for enterprises that employ disabled people.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
  To encourage the increase of job opportun ities and help the employment of the disabled 
people. 
 
4. Background and authority for the subsidy 
 
 MOF, Ministry of Civil Affairs (MCA), SAT. 
 
5. Legislation under which it is granted 
 
 SAT Circular Guo Shui Fa No.155 of 1994; 
 MOF Circular Cai Shui No.92 of 2007.  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 1) The VAT paid by the enterprises in  which employees with disabilities such as 
blindness, deafness, dumbness and physical deformities are over 50 per cent of total 
employees may be 100 per cent refunded; 
 2) The VAT paid by the enterprises in  which employees with disabilities such as 
blindness, deafness, dumbness and physical de formities are over 35 per cent but less than 
50 per cent of total employees and where the enterprises are at a loss, may be partially or 
totally refunded to the exte nt 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 an y other time-limits attached to it 
 
1994 to the end of June 2007.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 41 
 
 
  10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
32. 
1. Title of the subsidy program 
 
 Preferential tax policies for enterprises that employ disabled people.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
 To encourage the increase of job opportuniti es and help the employment of the disabled 
people. 
 4. Background and authority for the subsidy 
  MOF, MCA, SAT.  
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No.92 of 2007. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
 
The VAT paid by the enterprises that employ disabled people may be refunded at the time 
when it is collected.  The amount of VAT refunde d depends on the number of disabled people the 
enterprises employ.  With one disabled person, the enterprise may enjoy VAT refund equalling to 
six times the minimum wage set for a specific regi on annually with the maximum of RMB 35,000 per 
person per year. 
 
8. Subsidy per unit, or in cases where this is not  possible, the total amount or the annual amount 
budgeted for that subsidy 
 
Not available.   
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1 July 2007 to present.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 42 
 
 
  10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
Not available.   
  
33. 
1. Title of the subsidy program 
 
 Preferential tax policies for enterprises that employ disabled people.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
To encourage the increase of job opportuniti es and help the employment of the disabled 
people.   
 4. Background and authority for the subsidy 
  MOF, MCA, SAT.  
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994; 
 MOF Circular Cai Shui No.92 of 2007. 
 6. Form of the subsidy 
  Preferential tax treatment.    
7.  To whom and how the subsidy is provided 
 
 The income tax paid by the social welfar e enterprises in which employees with disabilities 
such as blindness, deafness, dumbness and physi cal deformities are over 35 per cent of total 
employees shall be exempted.  The income tax paid  by the social welfare enterprises in which 
employees with disabilities such as blindness, deafn ess, dumbness and physical deformities are over 
10 per cent but less than 35 per cent of to tal employees shall be reduced by half. 
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 43 
 
 
  9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1994 to the end of June 2007.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
34. 1. Title of the subsidy program 
  Preferential tax policies for enterprises that employ disabled people.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
  To encourage the increase of job opportun ities and help the employment of the disabled 
people.   
 
4. Background and authority for the subsidy 
 
 MOF, MCA, SAT. 
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No.92 of 2007; 
 Law of the People's Republic of China on Enterprise Income Tax (2007);  Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
 MOF Circular Cai Shui No.70 of 2009.  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 If an enterprise provides jobs to persons with disabilities, a weighted deduction of 
100 per cent of the wages paid to them shall be ma de in addition to the deduction of the actual wages 
paid to them when the taxable inco me of the enterprise is calculated. G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 44 
 
 
  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 an y other time-limits attached to it 
 
 1 July 2007 to present, and 1 January 2008 to  present for foreign invested enterprises.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
35. 
1. Title of the subsidy program 
 
Preferential tax treatment for imported products exclusively used by the disabled people.   
 2. Period covered by the notification 
  2005-2008.    
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, GAC. 
 5. Legislation under which it is granted 
  Provisional Regulations of the People's Re public of China on Value Added Tax (1994); 
 State Council Circular Guo Han No. 3 of 1997; 
 GAC Decree No. 61 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.   
  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 45 
 
 
  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 an y other time-limits attached to it 
 
 1997 to present.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
36. 
1. Title of the subsidy program 
 
 Preferential tax treatment for products for the disabled people.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
 To facilitate the recovery of the disabled people. 
 
4. Background and authority for the subsidy 
 
 MOF, SAT. 
 5. Legislation under which it is granted 
  MOF Circular Cai Shui No. 60 of 1994.  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 The VAT on artificial limbs, wheelchairs, orthopaedic applia nces including those for upper 
limbs, lower limbs and spinal bend and lean etc. shall be exempted.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 46 
 
 
  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 an y other time-limits attached to it 
 
1994 to present.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
37. 
1. Title of the subsidy program 
 
 Preferential tax treatment for enterprises produc ing products exclusively used by the disabled 
people.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To facilitate the recovery of the disabled people. 
 4. Background and authority for the subsidy 
  MOF, MCA, SAT.  
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No.132 of 2004; 
 MOF Circular Cai Shui No.148 of 2006; 
 MOF Circular Cai Shui No.1 of 2008.  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 Enterprises producing or assembling products to be exclusively used by the disabled people 
shall be exempted from enterprise income tax.     G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 47 
 
 
  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 an y other time-limits attached to it 
 
 2004 to the end of 2008. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
38. 
1. Title of the subsidy program 
 
Preferential tax policies for enterprises which pr ovide employment for unemployed people.   
 2. Period covered by the notification 
  2005-2008.    
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;  MOF Circular Cai Shui No.1 of 2008.  
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
  1) The income tax of newly established urban enterprises which employ unemployed 
people over 60 per cent of total employees within  a year may be exempted for three years; 
 2) The income tax of the above-mentioned enterprises which newly employ unemployed 
people over 30 per cent of their original total employees within a year may be reduced by half for an additional two years after the three years period of income tax exemption has expired.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 48 
 
 
  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 an y other time-limits attached to it 
 
1994 to the end of 2007. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
39. 
1. Title of the subsidy program 
 
Preferential tax policies for scientific resear ch institutions under transformation.   
 2. Period covered by the notification 
  2005-2008.    
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; 
 MOF Circular Cai Shui No.14 of 2005; 
 MOF Circular Cai Shui No.1 of 2008.  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 1) The income tax of the 242 scientific r esearch institutions subordinate to the former 
10 National Bureaus administrated by the former State Economic and Trade Commission (SETC) and the 134 scientific research institutions subordinate to 11 former Ministries such  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 49 
 
 
  as Ministry of Construction which were transf ormed into enterprises or integrated into 
enterprises shall be exempted for five years sin ce the day of the transformation registration.  
This preferential treatment will be extended for another two years after expiration.  
 2) The income tax of scientific research institutions subordinate to the organizations 
under the State Council which were transformed into  enterprises or integrated into enterprises 
after the review and approval 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 an y other time-limits attached to it 
 
 1) 2003 to present, and terminated upon expiration;   2) 2003 to the end of 2007. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
40. 
1. Title of the subsidy program 
 
Preferential tax policies for the research  and development of enterprises.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
To encourage the research and development of enterprises. 
 
4. Background and authority for the subsidy 
 
 MOF, SAT. 
 5. Legislation under which it is granted 
  MOF Circular Cai Shui No.244 of 2003;  MOF Circular Cai Shui No.88 of 2006; 
 MOF Decree No.48. G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 50 
 
 
  6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
  The actual expenses of domestic industrial en terprises, regardless of the ownership, on 
research and development of new products, new technologies and new crafts which have increased 
10 per cent (included) or more from the previous  year shall be deducted by 150 per cent from the 
taxable income of the year of the enterprises.  
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.   
 9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2003 to the end of 2005.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 41. 
1. Title of the subsidy program 
 
 Preferential tax policies for the research  and development of enterprises.   
 
2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
 
To encourage the research and development of enterprises. 
 
4. Background and authority for the subsidy 
 
 MOF, SAT. 
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No.88 of 2006; 
 MOF Circular Cai Shui No.1 of 2008.   G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 51 
 
 
  6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
  Research and development expenses that ar e incurred in the current year during the 
development of new technologies, new products  or new production techniques, including the 
expenses for design, trial-production of materials, semi-finished products or new products shall be 
deducted by 150 per cent from the taxable income of th e year of the enterprises.  Any amount that is 
not offset in the said year may be carried fo rward and offset in the following 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 an y other time-limits attached to it 
 
 2006 to the end of 2007.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
42. 
1. Title of the subsidy program 
 
Preferential tax policies for the research  and development of enterprises.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
To encourage the research and development of enterprises. 
 
4. Background and authority for the subsidy 
 
 MOF, SAT. 
 5. Legislation under which it is granted 
  Law of the People's Republic of China on Enterprise Income Tax (2007);   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 52 
 
 
   Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
 SAT Circular Guo Shui Fa No.116 of 2008. 
 6. Form of the subsidy 
  Preferential tax treatment.    
7. To whom and how the subsidy is provided 
 
Where the research and development expenses incu rred by an enterprise for the development 
of new technologies, new products and new techniques are included in the current profits or losses 
before they become intangible assets, a weighted deduction of 50 per cent of the research and development expenses shall be made in addition to  the deduction of actual expenses when the taxable 
income is calculated;  where they become intangible assets, the expenses shall be amortised at 
150 per cent of the cost of the intangible assets with the amortization period of not less than 10 years. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
Not available.   
 9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1 January 2008 to present.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 43. 
1. Title of the subsidy program 
 
Preferential tax policies for enterprises transferring technology.   
 
2. Period covered by the notification 
 
 2005-2008.   
 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/155/CHN 
 G/SCM/N/186/CHN 
 Page 53 
 
 
  5. Legislation under which it is granted 
 
 MOF Circular Cai Shui Zi No.001 of 1994; 
 MOF Circular Cai Shui No.1 of 2008.  
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 The income tax of enterprises profiting from technology transfers as well as from providing 
technology consultation, t echnology services and technology training in the transfer may be exempted 
where the annual net income of the enterprises is  less than RMB 300,000;  where the annual net 
income of the enterprise 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 an y other time-limits attached to it 
 
 1994 to the end of 2007.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 44. 
1. Title of the subsidy program 
 
Preferential tax policies for enterprises transferring technology.   
 
2. Period covered by the notification 
 
 2005-2008.   
 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/155/CHN 
G/SCM/N/186/CHN Page 54 
 
 
  5. Legislation under which it is granted 
 
 Law of the People's Republic of China on Enterprise Income Tax (2007); 
Regulations for the Implementation of Law of the People's Republic of China on Enterprise 
Income Tax (2007); 
SAT Circular Guo Shui Han No.212 of 2009. 
 6. Form of the subsidy 
  Preferential tax treatment.    
7. To whom and how the subsidy is provided 
 
Enterprise income tax on income up to RMB 5 million earned by a resident enterprise from 
any transfer of technologies in a tax year shall be exempted.  In the case of any excess of such income 
over RMB 5 million, there shall be a 50 pe r cent enterprise income tax 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 an y other time-limits attached to it 
 
1 January 2008 to present. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 45. 
1. Title of the subsidy program 
 
Research and development fund for industrial technologies.   
 
2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To support important technological research and development projects of commonweal or 
public interest.  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 55 
 
 
  4. Background and authority for the subsidy 
 
 MOF, National Development and Reform Commission (NDRC). 
 5. Legislation under which it is granted 
  MOF Circular Cai Jian No.30 of 2002.  
6. Form of the subsidy 
 
 Financial appropriations.   
 
7. To whom and how the subsidy is provided 
 
The fund is provided to enterprises engaged in a pproved research and development projects of 
industrial technologies after review of applications or bidding procedures.   
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Unit:  million RMB 
2005 2006 2007 2008 
1,650 2,000 2,480 2,940 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2002 to present.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
46. 1. Title of the subsidy programme 
 
Fund for supporting technological innovation of  the technological small and medium-sized 
enterprises (SMEs).   
 
2. Period covered by the notification 
 
 2005-2008.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 56 
 
 
  3. Policy objective and/or purpose of the subsidy 
 
To support SMEs in technology innovation and encourage the industrialization of the science 
and technology achievements.    
4. Background and authority for the subsidy 
 
 MOF, MOST. 
 
5. Legislation under which it is granted 
 
 Law of the People's Republic of China on Prom otion of Small and Medium-sized Enterprises; 
 General Office of State Council Ci rcular Guo Ban Fa No. 47 of 1999; 
 MOF Circular Cai Qi No.22 of 2005.  
 
6. Form of the subsidy 
 
 Financial appropriations.   
 7. To whom and how the subsidy is provided 
 
The financial support for SMEs in technology innovation includes government grants, interest 
discount and capital investment.   
 
Government grants of no more than RMB 1 million (2 million for few exceptional cases) may 
be provided for the industriali zation of science and technology achievements and research and 
development (R&D) of SMEs on the condition that the enterprises must contribute self-owned capital 
of more than the same amount.  
Interest discount may be provided for innovative projects already having certain scale and 
economic returns.  50 per cent to 100 per cent of the annual interests of the commercial loans for these 
innovative projects may be subsidized.  The total am ount of the interest disc ount provided is generally 
no more than RMB 1 million and in few exceptional cases no more than RMB 2 million.   
 
Capital investment is provided for projects w ith high starting point, great innovation potential 
and probable large market demand after the projects are turned into production.  The total amount 
shall not exceed 20 per cent of the re gistered capital of the enterprises. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Unit:  million RMB 
2005 2006 2007 2008 
600 750 1,100 1,400 
  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 57 
 
 
  9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1999 to present. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
47. 1. Title of the subsidy programme 
 
Development fund for SMEs.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
To support the SMEs development and to im prove the development environment of SMEs. 
 4. Background and authority for the subsidy 
  MOF, Ministry of Industry and Information Technology (MIIT).  
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 qi No.185 of 2004; 
MOF Circular Cai qi No.226 of 2006; MOF Circular Cai qi No.179 of 2008. 
 
6. Form of the subsidy 
 
 Financial appropriations.   
 7. To whom and how the subsidy is provided 
 
For projects in which the enterprises invest ma inly with self-owned capital, the support is 
usually given in the form of grant of no more than RMB 2 million (RMB 3 million from 
September 2008 on) or within the limit of the self-o wned capital investment.  For projects in which 
the enterprises invest mainly with  commercial loans, the support is  usually given in the form of 
interest discount to compensate the interests based on the amount of loans and the benchmark interest 
rate published by People's Bank of China.  The peri od for each project to enjoy the interest discount 
should be no more than 2 years and the total amount  that each project may receive in the form of 
interest discount should be no more than RMB 2 million (RMB 3 million from September 2008 on).   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 58 
 
 
  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 
2005 2006 2007 2008 
200 250 400 500 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2004 to present.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 48.  
1. Title of the subsidy programme 
 
 Special fund for establishment of service system for SMEs.   
 
2. Period covered by the notification 
 
 2005-2008.   
 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, NDRC, MIIT. 
 
5. Legislation under which it is granted 
 
Law of the People's Republic of China on Prom otion 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 lecturers and  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 59 
 
 
  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 SMEs, the actual expenses  may be subsidized as appropriate.  For those who 
provide services for SMEs to start business, the act ual 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 
2005 2006 2007 2008  
50 50 50 50 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2003 to present. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 
49. 1. Title of the subsidy programme 
 
Fund for international market exploration by SMEs.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To assist SMEs to explore international market. 
 4. Background and authority for the subsidy 
  MOF, MOFCOM.  
5. Legislation under which it is granted 
 
MOFTEC (MOFCOM) Circular Ji Cai Fa No.270 of 2001.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 60 
 
 
  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:  (a) holding or particip ating in overseas exhibitions, (b) accreditation fee for 
quality management system, environment management sy stem or for the product, (c) promotion in the 
international market, (d) exploring a new market, (e) holding trainings and symposiums, (f) 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 
2005 2006 2007 2008 
1600 1390 890 1080 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2001 to present.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
50. 
1. Title of the subsidy programme 
 
Fund for optimizing the import and export structur e of mechanical and electrical products as 
well as high-tech products.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
To support the optimization of the import and ex port structure of mechanical and electrical 
products as well as high-tech products.  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 61 
 
 
  4. Background and authority for the subsidy 
 
 MOF, MOFCOM.   
 5. Legislation under which it is granted 
 
MOFCOM Circular Shang Cai Fa No.291 of 2007. 
 
6. Form of the subsidy 
 
 Financial appropriations.   
 
7. To whom and how the subsidy is provided 
 
 The fund is provided for enterprises or i ndustrial associations engaged in projects of 
technology research and development, public inform ation service and personnel training etc.  The 
amount of support shall not exceed 50 per cent of the total real investment in the project.  Support to a 
single enterprise shall not exceed RMB 3 million and that for intermediary organizations shall not 
exceed RMB 10 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 
2005 2006 2007 2008 
- - 238 294 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2007 to 2008.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 51. 
1. Title of the subsidy programme 
 
 Fund for promoting the trade of agricultura l, light industry and textile products.   
 
2. Period covered by the notification 
 
 2005-2008.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 62 
 
 
  3. Policy objective and/or purpose of the subsidy 
 
 To improve the quality and safety of agricultura l, light industry and textiles products.   
 4. Background and authority for the subsidy 
 
MOF, MOFCOM. 
 
5. Legislation under which it is granted 
 
 MOFCOM Circular Shang Gui Fa No.507 of 2005. 
 
6. Form of the subsidy 
 
Financial appropriations.   
 7. To whom and how the subsidy is provided 
 
The fund is provided for projects promoting the development of quality system certification, 
registration of marks of origin and the training a nd exchange of new technology, new design and new 
marketing concepts.  
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
Unit:  million RMB 
2005 2006 2007 2008 
none none 500 100 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2005 to 2008.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
52. 1. Title of the subsidy programme 
  Fund for promotion of coordinated developm ent of foreign trade and economic relations 
among regions.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 63 
 
 
  2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To support the economic and trade development of undeveloped area.  
4. Background and authority for the subsidy 
 
 MOF, MOFCOM. 
 
5. Legislation under which it is granted 
 
 MOF Circular Cai Qi No.118 of 2008. 
 6. Form of the subsidy 
  Financial appropriations.    
7. To whom and how the subsidy is provided 
 
 This fund is provided for projects aiming at exploration of international market, scientific 
innovation and information system construction in the central, western and north-eastern areas of 
China.  
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 
2005 2006 2007 2008 
1,150 1,000 1,200 1,500 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2000 to present.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
53.  1. Title of the subsidy programme 
 
Preferential tax policies for key leading enterpri ses engaged in agricultural industrialization.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 64 
 
 
  2. Period covered by the notification 
 
 2005-2008.   
 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).  
 
5. Legislation under which it is granted 
 
 MOA Circular Nong Jing Fa No.8 of 2000; 
 SAT Circular Guo Shui Fa No. 124 of 2001;  MOF Circular Cai Shui No.1 of 2008. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
 
The income of the key leading enterprises a nd 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 enterprise income tax.   
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.   
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2001 to the end of 2007. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
54. 1. Title of the subsidy programme 
  Preferential tax policies for enterprises engaged in projects of preliminary processing of agricultural, forest, animal and fishery products.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 65 
 
 
  2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To support the development of agriculture.    
4. Background and authority for the subsidy 
 
 MOF.  
 
5. Legislation under which it is granted 
 
 Law of the People's Republic of China on Enterprise Income Tax (2007); 
 Regulations for the Implementation of Law of  the People's Republic of China on Enterprise 
Income Tax (2007); 
 MOF Circular Cai Shui No.149 of 2008. 
 6. Form of the subsidy 
  Preferential tax treatment.    
7. To whom and how the subsidy is provided 
 
 Enterprise income tax on the income derived by an enterprise from stipulated projects of 
preliminary processing related to farming, forestry , animal husbandry and fisheries may be exempted 
or reduced.   
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.   
 9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2008 to present.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 55. 
1. Title of the subsidy programme 
 
 Fund for specialized economic cooperatives of farmers.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 66 
 
 
  2. Period covered by the notification 
 
 2005-2008.   
 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. 
 6. Form of the subsidy 
  Financial appropriations.    
7. To whom and how the subsidy is provided 
 
 The fund is provided to qualified specialized cooperatives of farmers.  MOF provides fund to 
the local governments.  Local governments review app lications to allocate the fund and then report to 
MOF for record.    
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
Unit:  million RMB 
2005 2006 2007 2008 
80 80 200 300 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2003 to present.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 56. 
1. Title of the subsidy programme 
 
 Fund for subsidizing the training of rural migrant labour force.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 67 
 
 
  2. Period covered by the notification 
 
 2005-2008.   
 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 la bour 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.18 of 2005.  
 
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 fa rmers.  MOF and MOA jointly review 
applications for fund submitted by local governments.   After approval of the applications, 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 
2005 2006 2007 2008 
400 600 900 1,100 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2004 to present.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 68 
 
 
  57. 
1. Title of the subsidy programme 
 
Fund for training of youngster farmers on science and technology.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To assist farmers to obtain the knowledge on  science and technology and to improve their 
business management capacity.    
4. Background and authority for the subsidy 
 
 MOF, MOA. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.349 of 2006.   
 6. Form of the subsidy 
  Financial appropriations.    
7. To whom and how the subsidy is provided 
 
 The fund is provided to organizations or institu tions that provide training to farmers in rural 
areas.  MOF and MOA jointly review applications for fund submitted by local governments.  After 
approval of the applications, 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 
2005 2006 2007 2008 
50 100 200 500 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1999 to 2008.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 69 
 
 
  58. 
1. Title of the subsidy programme 
  Fund for popularization of agricultural technologies.    
2. Period covered by the notification 
 
 2005-2008.   
 
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.   
 
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 or demonstration to other areas.  MOF re views applications for fund submitted by local 
governments and grants the fund after approval of the applications.   
 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 
2005 2006 2007 2008 
300 300 500 700 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1999 to present.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 70 
 
 
  59.  
1. Title of the subsidy programme 
 
Fund for subsidizing transformation of agricultural technology.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To accelerate the transformation of technological  achievements in agriculture, forestry, water 
conservation and irrigation, and to improve th e 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 enterprises, scientific research institutions a nd colleges that are the 
right-holders of new agricultural technology.  MO F and MOST jointly review applications for fund 
submitted by local governments.  Af ter approval of the applications, 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 
2005 2006 2007 2008 
300 300 300 300 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2001 to present.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 71 
 
 
  60.  
1. Title of the subsidy programme 
 
Subsidy for promoting superior strains and seeds.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To accelerate the upgrading of strains and seeds,  increase the output of agricultural products, 
improve the quality of agricultural products and guarantee food security.    
4. Background and authority for the subsidy 
 
 MOF, MOA. 
 
5. Legislation under which it is granted 
 
 MOF Circulars Cai Nong No.16 and No.17 of 2004. 
 6. Form of the subsidy 
  Financial appropriations.    
7. To whom and how the subsidy is provided 
 
 The subsidy is provided to farmers purchasi ng superior strains and seeds.  MOF and MOA 
jointly review applications for fund submitted by local governments.  After approval of the 
applications, 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 
2005 2006 2007 2008 
3,800 4,100 6,600 12,300 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2002 to present. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 72 
 
 
  61.  
1. Title of the subsidy programme 
 
Subsidy for purchasing agricultural machinery and tools.   
 
2. Period covered by the notification 
 
 2005-2008.  
 
3. Policy objective and/or purpose of the subsidy 
 
 To enhance agricultural mechanization, and pus h forward the development of agriculture and 
rural economy.  
4. Background and authority for the subsidy 
 
 MOA, MOF.  
 
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No.11 of 2005.   
 6. Form of the subsidy 
  Financial appropriations.    
7. To whom and how the subsidy is provided 
 
 The subsidy is provided to individual farmer s or services providers of agricultural machinery 
and tools that purchase agricultural machinery and t ools.  MOA and MOF jointly review applications 
for fund submitted by local governments.  After a pproval of the applications, 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 
2005 2006 2007 2008 
300 600 2,000 4,000 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1999 to present.  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 73 
 
 
  10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
62.  
1. Title of the subsidy programme 
 
Comprehensive subsidies for agricultural inputs.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
 To compensate farmers' loss caused by the price hikes of agricultural inputs, and improve 
farmers' income. 
 4. Background and authority for the subsidy 
  MOF.  
5. Legislation under which it is granted 
 
General Office of the State Council Circular Guo Ban Fa No.16 of 2006. 
 
6. Form of the subsidy 
 
 Financial appropriations.   
 7. To whom and how the subsidy is provided 
  The fund for the subsidy is allocated to provi ncial governments, which are responsible for the 
formulation of detailed implementation plans and provision of the subsidy to farmers. 
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
Unit:  million RMB 
2005 2006 2007 2008 
- 12,000 27,600 71,600 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2006 to present. G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 74 
 
 
  10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
63. 
1. Title of the subsidy programme 
 
 Direct subsidy to farmers.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
 To maintain the stability and development of  agricultural production, improve the overall 
agricultural production capacity and farmers' income. 
 4. Background and authority for the subsidy 
  MOF.   
5. Legislation under which it is granted 
 
State Council Circular Guo Fa No.17 of 2004.   
 
6. Form of the subsidy 
 
 Financial appropriations.   
 7. To whom and how the subsidy is provided 
 
Provincial governments are responsible for the detailed implementation plan.  Subsidies will 
be provided according to the taxable area of the farmland.   
 
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
Unit:  million RMB 
2005 2006 2007 2008 
13,200 14,200 15,100 15,100 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2004 to present.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 75 
 
 
  10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
64. 
1. Title of the subsidy programme 
 
 Fund for agricultural comprehensive development.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
 To improve the infrastructure constructi on and ecological construction, enhance the 
agricultural comprehensive production capacity, optimize the agricultural and rural economic 
structure and improve farmers' income.  
4. Background and authority for the subsidy 
 
 MOF. 
 
5. Legislation under which it is granted 
 
MOF Decree No.60.  
 6. Form of the subsidy 
  Financial appropriations.    
7. To whom and how the subsidy is provided 
 
 The fund is provided to agricultural compre hensive development projects, which will be 
subsidized after approval of the applications. 
 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 
2005 2006 2007 2008 
7,600 7,800 8,400 103,000 
 G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 76 
 
 
  9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1988 to present.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
65. 1. Title of the subsidy programme 
 
Fund subsidizing agricultural industrialization and agricultural products processing.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
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 enterpri ses and production bases.  The MOF reviews the 
applications for fund submitted by local government s and grants the fund after approval of the 
applications.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 77 
 
 
  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 
2005 2006 2007 2008 
100 150 300 400 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1998 to 2008.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 66.  
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 
 
 2005-2008.   
 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, Ministry of Water Resources (MWR).   
 5. Legislation under which it is granted 
  MOF Circular Cai Nong No. 279 of 2005.    
6. Form of the subsidy 
 
 Financial appropriations.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 78 
 
 
  7. To whom and how the subsidy is provided 
 
 The fund is provided to individuals, enterp rises or related organizations.  MOF and MWR 
jointly review the applications for fund submitted by local governments.  After approval of the 
applications, 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 
2005 2006 2007 2008 
46.5 49.9 49.9 49.9 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1997 to present.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 67. 
1. Title of the subsidy programme 
 
Subsidy for national key construction proj ects on water and soil conservation.   
 
2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To assist small scale farmland irrigation and water and soil conservation projects in rural areas. 
 
4. Background and authority for the subsidy 
 
 MOF, MWR. 
 5. Legislation under which it is granted 
 
MOF Circular Cai Nong Zi No. 402 of 1987.  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 79 
 
 
  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 MWR jointly review 
the applications for fund submitted by local government s.  After approval of the applications, 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 
2005 2006 2007 2008 
50 50 80 80 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1983 to present.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
68. 
1. Title of the subsidy programme 
 
Preferential tax policies for the enterprises engaged in forestry.   
 2. Period covered by the notification 
  2005-2008.    
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).   
 5. Legislation under which it is granted 
  MOF Circular Cai Shui No.171 of 2001;   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 80 
 
 
   MOF Circular Cai Shui No.1 of 2008. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
The income of enterprises and institutions deri ved from production of forestry, forestry seeds 
as well as from preliminary processing of forestry pr oducts may be exempted from enterprise income 
tax from 2001 to the end of 2007.   
 
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 an y other time-limits attached to it 
 
 2001 to the end of 2007.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
69.  
1. Title of the subsidy programme 
 
Subsidy for prevention from and control of pest and disease in forestry  
 2. Period covered by the notification 
  2005-2008.    
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 forests.   
 4. Background and authority for the subsidy 
  MOF, SFA.  
5. Legislation under which it is granted 
 
MOF Circular Cai Nong No. 44 of 2005.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 81 
 
 
  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.  Applications  for the fund are submitted by local governments.  
MOF and SFA jointly review the applications a nd determine the amount of the subsidy.  After 
approval of the applications, 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 
2005 2006 2007 2008 
200 200 200 270 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1980 to present.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 70. 
1. Title of the subsidy programme 
 
Subsidy for grass seed sowing by airplanes.   
 
2. Period covered by the notification 
 
 2005-2008.   
 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. G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 82 
 
 
  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 applications for fund submitted by lo cal governments and grants the fund after approval 
of the applications.    
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 
2005 2006 2007 2008 
9 9 9 9 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
1984 to present.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
71.  
1. Title of the subsidy programme 
 
Preferential tax policies for enterprises of grain or oil reserves.   
 2. Period covered by the notification 
  2005-2008.    
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/155/CHN 
 G/SCM/N/186/CHN 
 Page 83 
 
 
  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 an y other time-limits attached to it 
 
1999 to present.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
72. 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 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To secure food safety.    
4. Background and authority for the subsidy 
 
 MOF, SAT.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 84 
 
 
  5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No.74 of 2004; 
 MOF Circular Cai Shui No.105 of 2006.  
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 an y other time-limits attached to it 
 
 2001 to the end of 2008.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 73. 
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 grassla nd, and the grain rations for the migrants from the 
reservoir areas.    
2. Period covered by the notification 
 
 2005-2008.   
 
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/155/CHN 
 G/SCM/N/186/CHN 
 Page 85 
 
 
  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 an y other time-limits attached to it 
 
August 1999 to present, and 20 01 to present for compensation grain for returning cultivated 
land to forests and to grassland.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
74. 1. Title of the subsidy programme 
  Preferential tax treatment for poultry industry.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To control the spread of the deadly avian flu virus. 
 4. Background and authority for the subsidy 
  MOF, SAT.    G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 86 
 
 
  5. Legislation under which it is granted 
 
MOF Circular Cai Shui No.166 of 2005; 
MOF Circular Cai Shui No.113 of 2006. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 1) The enterprise income tax of poultry farming and processing enterprises and of frozen 
food firms on income derived from poultry farming, poultry processing and sales of frozen poultry products shall be exempted from 2005 to 2006.   
 2) The VAT on poultry products processed and sold by poultry processing firms 
and frozen food firms shall be refunded upon collection from 1 November 2005 to 
31 December 2006. 
 
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 an y other time-limits attached to it 
 
  1) 2005-2006; 
 2) 1 November 2005 to 31 December 2006. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
75. 1. Title of the subsidy programme 
  Interest discount for poultry industry.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To control the spread of deadly avian flu virus.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 87 
 
 
  4. Background and authority for the subsidy 
 
 MOF, MOA. 
 5. Legislation under which it is granted 
 
MOF Circular Cai Jin No. 30 of 2004; MOF Circular Cai Jin No. 134 of 2005; 
MOF Circular Cai Jin No. 65 of 2006. 
 6. Form of the subsidy 
  Financial appropriations.    
7. To whom and how the subsidy is provided 
 
 The interest rate on current funds loans of poultry farming, processing and vaccine production 
enterprises may be subsided as appropriate on the condition that the enterprises meet stipulated 
requirements.    
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 an y other time-limits attached to it 
 
 For poultry farming and processing enterprises, 31 January 2004 to 31 July 2004, 1 November 2005 to 30 June 2006 and from 1 July 2006 to 31 December of 2006.  For vaccine 
production enterprises, from 1 November 2005 to 30 June 2006 and from 1 July 2006 to 
31 December of 2006.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 76. 
1. Title of the subsidy programme 
 
 Preferential tax treatment for tea sold in the border areas.   
 
2. Period covered by the notification 
 
 2005-2008.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 88 
 
 
  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.  
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 71 of 2001; 
MOF Circular Cai Shui No. 103 of 2006; 
MOF Circular Cai Shui No. 141 of 2009. 
 
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 an y other time-limits attached to it 
 
 1994 to the end of 2010.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 77. 
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 
  2005-2008.     G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 89 
 
 
  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, General Administration of Customs (GAC).  
5. Legislation under which it is granted 
 
 MOF Circular Cai Shui No.63 of 2000. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
 
Tariffs and import VAT on imported products 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 an y other time-limits attached to it 
 
 1 January 2000 to present. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
78. 
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 
 
 2005-2008.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 90 
 
 
  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. 
 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 breeds which are within the approved quantity and 
scope shall be exempted.    
8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.   
 9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2001 to 2005.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 79. 
1. Title of the subsidy programme 
 
Preferential tax policies on imports of seeds (seedlings), breeding stock (fowl), fish fries 
(breeds) and wild animals and plants kept as br eeds during the period of the "Eleventh Five-Year 
Plan".    
2. Period covered by the notification 
 
 2005-2008.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 91 
 
 
  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 effi cient 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 Guan Shui No.3 of 2006; 
 MOF Circular Cai Guan Shui No.38 of 2006;  MOF Circular Cai Guan Shui No.50 of 2009. 
 
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 
wild animals and plants kept as breeds which ar e within the approved quantity and scope shall be 
exempted.   
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.   
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 2006-2010.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 
80.  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 China.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 92 
 
 
  2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To facilitate the implementation of the C onvention on International Trade in Endangered 
Species of Wild Fauna and Flora and to protect wild animals and plants.   
 
4. Background and authority for the subsidy 
 
 MOF, GAC, SFA. 
 5. Legislation under which it is granted 
  MOF Circular Cai Shui No.8 of 2003.    
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
Tariff and import VAT on the endangered wild animals and plants as well as their products 
which are listed in the appendix to the Convention on International Trade in Endangered Species of 
Wild Fauna and Flora, returned by foreign govern ments, by the 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 an y other time-limits attached to it 
 
 1 January 2002 to present.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 93 
 
 
  81. 
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 equipment.   
 2. Period covered by the notification 
  2005-2008.    
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;  SAT Circular Guo Shui Fa No.90 of 2000; 
MOF Circular Cai Shui No.1 of 2008; 
SAT Circular Guo Shui Fa No.52 of 2008. 
 
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 forei gn invested enterprises and foreign enterprises which 
have establishments or place in China engaged in production or business operations, 40 per cent of the 
expenses on purchasing domestically produced equipments  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 increment of in come tax of that year compared to the previous 
year.  Herein the "domestically produced equipment"  do not include those imported directly by other 
enterprises, or those produced by processing trade and compensatory trade, or those listed in the 
"Catalogue for the Imported Products not subject to Tax Exemption in Foreig n Investment Projects" 
as stipulated in State Council Circular Guo Fa No .37 of 1997.  The deducted portion shall not exceed 
that year's total increment of income tax, and in  the case where the total increment of income tax is 
less than 40 per cent of such expenses, the exceedi ng part of the deductible expenses can be deducted 
from the next year's increment of income tax.  Su ch postponement of deductibility shall not last for 
more than 5 years.    G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 94 
 
 
  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 an y other time-limits attached to it 
 
1 July 1999 to the end of 2007.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
82. 
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 
 
 2005-2008.   
 
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, NDRC.  
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No.290 of 1999; 
MOF Circular Cai Shui No.1 of 2008; 
SAT Circular Guo Shui Fa No.52 of 2008. 
 
6. Form of the subsidy 
 
Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 For technology upgrading projects of domestic enterprises consistent with the state industrial 
policies, 40 per cent of the expenses on purchasing  domestically produced equipments shall be 
deducted from the increment of income tax of that y ear compared to the previous year.  In the case  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 95 
 
 
  where the total increment of income tax is less than  40 per cent of such expenses, the exceeding part 
of the deductible expenses can be deducted from th e next year's increment of income tax.  Such 
postponement of deductibility shall not last for more than 5 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 an y other time-limits attached to it 
 
1 July 1999 to the end of 2007. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
83. 1. Title of the subsidy programme 
 
Exemption of tariff and import VAT for th e imported technologies and equipments.   
 
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
To attract foreign investment, to encourage dom estic investment and to stimulate structural 
adjustment and industrial upgrading.    
4. Background and authority for the subsidy 
 
MOF, SAT, NDRC, MOFCOM, GAC. 
 
5. Legislation under which it is granted 
 
State Council Circular Guo Fa No.37 of 1997; 
MOF Circular Cai Guan Shui No.11 of 2007; MOF Circular Cai Shui No.170 of 2008. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 96 
 
 
  7. To whom and how the subsidy is provided 
 
 For foreign-invested projects listed as en couraged category in the "Catalogue for the 
Guidance of the Foreign Investment Industries", th e equipment purchased for self-use within the total 
investment of the project, excluding those listed in the "Catalogue for the Imported Products not 
subject to Tax Exemption in Foreign Investment Pr ojects", shall be exempted from tariff and import 
VAT.  For the projects using the loans provided by foreign governments or by international financial 
organizations, the equipment purchased for self-use w ithin the total investment of the projects, 
excluding those listed in the "Catalogue for the Impo rted Products not subject to Tax Exemption in 
Foreign Investment 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 equipment purchased for self-use within the total investment of the 
project, and the technologies, accessories and spare parts imported with the equipment as provided in 
the contract, excluding those listed in the "Catalogue  for the Imported Products not subject to Tax 
Exemption in Domestic investment Projects", sh all 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 an y other time-limits attached to it 
 
1998 to the end of 2008. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
84. 1. Title of the subsidy programme 
  Subsidy for scrapping old vehicles.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To encourage people to replace their old vehicles. 
 4. Background and authority for the subsidy 
  MOF, MOFCOM.   G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 97 
 
 
  5. Legislation under which it is granted 
 
MOF Circular Cai Jian No.742 of 2002. 
 6. Form of the subsidy 
  Financial appropriations.    
7. To whom and how the subsidy is provided 
 
 Consumers meeting certain requirements w ill be subsidized when scrapping their old 
vehicles.  The amount of subsidy will be publicized annually.   
 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 
2005 2006 2007 2008 
250 140 122 260 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
2002 to present.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
85. 
1. Title of the subsidy programme 
 
Preferential tax policies for integrated circuit industry.   
 2. Period covered by the notification 
  2005-2008.    
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. 
 G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 98 
 
 
  5. Legislation under which it is granted 
 
State Council Circular Guo Fa No.18 of 2000; 
 MOF Circular Cai Shui No.25 of 2000; 
MOF Circular Cai Shui No.70 of 2002; 
MOF Circular Cai Shui No.174 of 2004; 
MOF Circular Cai Shui No.136 of 2002; MOF Circular Cai Shui No.152 of 2002; 
MOF Circular Cai Guan Shui No.45 of 2004; 
Law of the People's Republic of China on Enterprise Income Tax (2007); MOF Circular Cai Shui No.1 of 2008; 
MOF GAC SAT Announcement No.43 of 2008. 
 6. Form of the subsidy 
  Preferential tax treatment.    
7. To whom and how the subsidy is provided 
 
 1) From 1 January 2002 to the end of 2010, 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 in order to increase its registered capital, or 
uses the profit as capital investment to establish other integrated circuit producing or 
packaging enterprises with the operating period of  not less than 5 years, shall be refunded 
40 per cent of the enterprise income tax already paid on the reinvested amount. 
2) From 1 January 2002 to the end of 2010, domestic or foreign economic entities 
investing its share of profit obtained inside China,  after paying the income tax, into integrated 
circuit producing or packaging enterprises locat ed in the western regions with the operating 
period of not less than 5 years, shall be re funded 80 per cent of the enterprise income tax 
already paid on the reinvested amount. 
3) From 1 July 2000 to present, integrated circuit producing enterprises with investment 
of more than RMB 8 billion or producing inte grated circuit with a line width lesser than 
0.25 um shall enjoy the same preferential tax treatment as that to encourage the foreign 
investment in energy and transportation sectors before 2008, which is that enterprise income 
tax is collected at the reduced rate of 15 pe r cent.  Enterprises with the operating period of 
more than 15 years shall be exempt from ente rprise 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 half from the sixth year to the tenth year.   
4) From 1 July 2000 to present, the imported raw materials for self production and 
expendables listed in the Circular of integrated  circuit producing enterprises with investment 
of more than RMB 8 billion or producing inte grated circuit with a line width lesser than 
0.25 um shall be exempt from tariff and import VAT.   
 
From 1 January 2001 to present, the imported sp ecialized building material and integrated 
circuit components listed in the Circular of integr ated circuit producing enterprises with investment of 
more than RMB 8 billion or producing integrated circ uit with a line width lesser than 0.25 um shall be 
exempt from tariff and import VAT.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 99 
 
 
  5) From 2002 to present, the accredited inte grated circuit producing enterprises 
producing integrated circuit with a line width of 0.8 um or less shall, from the year beginning 
to make profit, be exempted from income ta x in the first and second years and allowed a 
50 per cent reduction in the third to the fifth years.   
6) From 1 October 2004 to present, the impor ted raw materials for self production and 
expendables listed in the Circular of integr ated circuit producing enterprises producing 
integrated circuit with a line width of 0. 8 um or less shall be exempt from tariff and 
import VAT. 
7) From 2002 to 31 March 2005, VAT taxpa yers selling independently-developed 
integrated circuit products sh all be refunded upon collection the portion of the VAT paid 
which exceeds 3 per cent. 
8) From 1 July 2000 to present, imported t echnology and whole set of equipment for 
production of integrated circuit products, and separately imported special equipment and apparatus to produce integrated circuit produc ts by accredited integrated circuit producing 
enterprises shall be exempt from tariff.   
 
From 1 July 2000 to 31 December 2008, importe d technology and whole set of equipment for 
production of integrated circuit products, and separ ately imported special equipment and apparatus to 
produce integrated circuit products by accredited in tegrated circuit producing enterprises shall be 
exempt from import VAT.   
 
The above mentioned technology and equipment shall exclude those listed in the "Catalogue 
for the Imported Products not subject to Tax Exemp tion in Foreign Investment Projects" or in the 
"Catalogue for the Imported Products not subject to Ta x Exemption in Domestic investment Projects".   
 
9) From 1 July 2000 to present, the depreci ation period for manufacturing equipment of 
integrated circuit producing enterprises may be  shortened as appropriate, with the minimum 
of 3 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 an y other time-limits attached to it 
 
 1) and 2) 1 January 2002 to the end of 2010;   3) 1 July 2000 to present; 
 4) 1 July 2000 to present, or 1 January 2001 to present;  
 5) 2002 to present;  6) 1 October 2004 to present; 
 7) 2002 to 31 March 2005;  
 8) 1 July 2000 to present, or 1 July 2000 to 31 December 2008;  9) 1 July 2000 to present. G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 100 
 
 
  10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
86.  
1. Title of the subsidy programme 
 
Fund for research and development of integrated circuit industry.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
To support the research and developmen t of integrated circuit industry.   
 
4. Background and authority for the subsidy 
 
 MOF, NDRC, MIIT.   
 5. Legislation under which it is granted 
 
MOF Circular Cai Jian No.132 of 2005. 
 
6. Form of the subsidy 
 
 Financial appropriations.   
 
7. To whom and how the subsidy is provided 
 
 Government aid is provided to projects meeting certain requirement of an enterprise which is 
an independent legal person  engaged in design, manufacturing, packaging or test of integrated circuits 
and registered within the territory of the People' s Republic of China (excluding Hong Kong, China;  
Macao, China and Chinese Taipei).  The amount of aid to a single research and development project 
shall not exceed 50 per cent of the cost of such an activity.  
 
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 
2005 2006 2007 2008 
150 250 300 400 
  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 101 
 
 
  9. Duration of the subsidy and/or an y other time-limits attached to it 
 
June 2005 to present.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
87. 1. Title of the subsidy programme 
  Fund for development of electrical information industry.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
To support research and development activities of the electrical information industry.   
 4. Background and authority for the subsidy 
  MOF, MIIT.  
5. Legislation under which it is granted 
 
MOF Circular Cai Jian No.425 of 2001; 
MOF Circular Cai Jian No.866 of 2007. 
 6. Form of the subsidy 
  Financial appropriations.   
7. To whom and how the subsidy is provided 
 
 This fund is provided in the form of government grant, interest discount or venture investment 
to enterprises with projects approved after application or bidding procedures.   
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
Unit:  million RMB 
2005 2006 2007 2008 
550 600 600 800 G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 102 
 
 
  9. Duration of the subsidy and/or an y other time-limits attached to it 
 
1986 to present. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
88. 1. Title of the subsidy programme 
  Fund for high technology R&D for packaging industry.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
 To support the research and development activ ities of packaging industry, to promote the 
development of recycling economy and green packaging. 
 
4. Background and authority for the subsidy 
 
 MOF. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Qi No.107 of 2005; 
MOF Circular Cai Qi No.154 of 2008. 
 
6. Form of the subsidy 
 
 Financial appropriations.   
 
7. To whom and how the subsidy is provided 
 
 This fund is provided in the form of governme nt grant and interest discount to enterprises 
with projects approved after application and review ed by experts.  The amount of government grant 
shall not exceed RMB 5 million or the capital invest ed by the enterprises themselves.  The period of 
each project to enjoy interest discount shall be no more than 2 years and the total amount that each 
project receives in the form of interest discount shall be no more than RMB 5 million.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 103 
 
 
  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 
2005 2006 2007 2008 
30 30 30 30 
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
2005 to present.   
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 89. 
1. Title of the subsidy programme 
 
 Preferential tax treatment for raw copper materials.   
 
2. Period covered by the notification 
 
 2005-2008.   
 3. Policy objective and/or purpose of the subsidy 
  To promote technology upgrading of enterprises.  
4. Background and authority for the subsidy 
 
 MOF, SAT, GAC. 
 
5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 81 of 2003; 
MOF Circular Cai Shui No.10 of 2004; MOF Circular Cai Guan Shui No. 12 of 2005; 
MOF Decree No.48. 
 6. Form of the subsidy 
  Preferential tax treatment.   G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 104 
 
 
  7. To whom and how the subsidy is provided 
 
30 per cent of import VAT on copper concentr ate, waste copper and unrefined copper 
imported within the approved quantity by copper refineries with production or refining capacity of 
electrolytic copper over 30,000 tons which meet th e 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 an y other time-limits attached to it 
 
 2003 to 2005.   
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    
 
90. 1. Title of the subsidy programme 
  Preferential tax treatment for casting and forging products.    
2. Period covered by the notification 
 
 2005-2008.   
 
3. Policy objective and/or purpose of the subsidy 
 
To encourage the technology upgrading of enterprises and the research and development 
activities 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; 
 MOF Circular Cai Shui No.150 of 2006;  MOF Circular Cai Shui No.151 of 2006; 
 MOF Decree No.48.  G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 105 
 
 
  6. Form of the subsidy 
 
 Preferential tax treatment.   
 7. To whom and how the subsidy is provided 
 
From 1 January 1998 to 31 December 2008, the VAT on the casting and forging products 
which are used in producing machinery, manufactured  and sold by the specialized casting and forging 
enterprises listed in the annex to the Circular shall be collected according to stipulations at first, and 
then 35 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 an y other time-limits attached to it 
 
 1 January 1998 to 31 December 2008.    
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
 91. 
1. Title of the subsidy programme 
 
 Preferential tax treatment to dies products.   
 
2. Period covered by the notification 
 
 2005-2008.   
 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. 95 of 2003; MOF Circular Cai Shui No.152 of 2006; G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 106 
 
 
  MOF Decree No.48. 
 
6. Form of the subsidy 
 
 Preferential tax treatment.   
 
7. To whom and how the subsidy is provided 
 
 1) From 1 January 2003 to 31 December 2005, the VAT on the dies products 
manufactured and sold by the specialized dies manufacturing enterprises listed in the annex to 
the Circular shall be collected according to stip ulations at first, and then 70 per cent of the 
actually collected VAT shall be refunded. 
 2) From 1 January 2006 to 31 December 2008, the VAT on the dies products 
manufactured and sold by the specialized dies manufacturing enterprises listed in the annex to 
the Circular shall be collected according to stip ulations at first, and then 50 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 an y other time-limits attached to it 
 
 1) 1 January 2003 to 31 December 2005;  2) 1 January 2006 to 31 December 2008. 
 
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
  
92. 
1. Title of the subsidy programme 
 
 Preferential tax treatment to numerica lly controlled machine tool products.   
 2. Period covered by the notification 
  2005-2008.    
3. Policy objective and/or purpose of the subsidy 
 
To encourage enterprises to conduct research and development of numerically controlled 
machine tool products.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 107 
 
 
  4. Background and authority for the subsidy 
 
 MOF, SAT. 
 5. Legislation under which it is granted 
 
MOF Circular Cai Shui No. 97 of 2003; MOF Circular Cai Shui No.149 of 2006; 
MOF Decree No.48.   
 6. Form of the subsidy 
  Preferential tax treatment.    
7. To whom and how the subsidy is provided 
 
 1) From 1 January 2003 to 31 December  2005, the VAT on numerically controlled 
machine tool products produced and sold by certain numerically controlled machine tool 
manufacturing enterprises shall be refunded after collection.   
 2) From 1 January 2006 to 31 December  2008, the VAT on numerically controlled 
machine tool products produced and sold by certain numerically controlled machine tool 
manufacturing enterprises shall be collected acco rding to stipulations at first, and then 
50 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 an y other time-limits attached to it 
 
 1) 1 January 2003 to 31 December 2005; 
 2) 1 January 2006 to 31 December 2008. 
 10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.   
 
93. 
1. Title of the subsidy programme 
 
 Preferential tax treatment to anti-HIV-AIDS medicine.   
 2. Period covered by the notification 
  2005-2008.    G/SCM/N/155/CHN 
G/SCM/N/186/CHN Page 108 
 
 
  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.160 of 2002; 
MOF Circular Cai Shui No.181 of 2003; 
MOF Circular Cai Shui No.1 of 2007; MOF Circular Cai Shui No.49 of 2007; 
MOF Decree No.48.   
 6. Form of the subsidy 
  Preferential tax treatment.    
7. To whom and how the subsidy is provided 
 
1) From 1 January 2002 to the end of 2010, tariffs and import VAT and VAT in 
domestic circulation stages on imported anti-HI V-AIDS medicine shall be exempted.   
2) From 1 July 2003 to the end of 2010, VAT in production and circulation stages on 
domestically produced anti-HIV-AIDS medicine  by designated domestic producers shall be 
exempted.   
 8. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy 
 
 Not available.   
 
9. Duration of the subsidy and/or an y other time-limits attached to it 
 
 1) 1 January 2002 to the end of 2010. 
 2) 1 July 2003 to the end of 2010.  
10. Statistical data permitting an assessmen t of the trade effects of a subsidy 
 
 Not available.    G/SCM/N/155/CHN 
 G/SCM/N/186/CHN 
 Page 109 
 
 
  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 referred 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, th e Pearl River Delta and the triangle area in Fujian 
Province of Xiamen, Zhangzhou and Quanzhou cities were open to be included in the costal 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 Province, 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 Yang tze river namely Chongqing, Yueyang, Wuhan, Jiujiang, 
Wuhu, 6 provincial capital cities in border and coasta l provinces 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, Nanc hang, 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 Hubei Province, Wushan County, Wuxi County, Fengjie County, Yunyang County, Kai County and Zhong County under the Wanxian City of Sichuan Province, Shizhu County under the 
Qianjiang Prefecture and Fengdu County, Wulong County under the Fuling Prefecture of Sichuan Province, and 
Changshou County, Jiangbei County, Ba County and Jiangjin City under Chongqing City.  Here the administrative division was that before the establishment of the Chongqing Municipality directly under the 
Central Government. 
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.  
 
__________