G/SCM/Q2/CHN/74
23 April 2018
(18-2510) Page: 1/8
Committee on Subsidies and Countervailing Measures Original: English
SUBSIDIES
FOLLOW-UP QUESTIONS FROM THE UNITED STATES REGARDING THE SUB-CENTRAL NEW AND FULL NOTIFICATION OF CHINA1
The following communication, dated 20 April 2018, is being circulated at the request of the Delegation of the United States.
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1. We appreciate the answers to the United States’ questions on China’s sub-central notification. We recognize that collecting subsidy information from sub-central entities can be a difficult task. We note, however, only 20 of the 32 sub-central entities are covered in China’s first and only sub-central subsidy notification since becoming a WTO Member seventeen years ago. The United States considers this to be inadequate given the prevalence of subsidy programs administered by sub-central authorities, as well as a history of prohibited subsidies being provided by sub-central entities, as is demonstrated in several dispute settlement consultation requests by the United States, and indeed, the sub-central notification itself. Will China commit to meeting its obligation under the Agreement on Subsidies and Countervailing Measures to include subsidies from all sub-central entities in its next subsidies notification (which was due June 2017)?
2. While China has notified the Strategic Emerging Industries (SEI) program at the central government level, there were no SEI measures included in the sub-central notification. Why were the sub-central SEI measures listed below not included in the sub-central notification?
Beijing Municipality Opinion on the Implementation of Accelerating the Cultivation and Development of Strategic Emerging Industries, Beijing Municipal People's Government, Jing Zheng Fa [2011] No. 38 (21 July 2011). Fujian Province Plan on the Implementation of Accelerating the Development of Strategic Emerging Industries, Fujian Provincial People's Government, Min Zheng [2011] No. 104 (10 December 2011).
Jiangxi Province Interim Measure on the Administration of the Strategic Emerging Industries Investment Guidance Fund, Jiangxi Provincial People's Government (27 March 2012).
Shandong Province 12th Five-Year Plan on Strategic Emerging Industries Development, Shandong Provincial People's Government, Lu Zheng Fa [2012] No. 42 (2 November 2012).
Shanghai Municipality Measure on the Administration of the Strategic Emerging Industries Development Special Fund, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Department of Finance, Hu Fu Fa [2012] No. 72 (4 August 2012).
1 G/SCM/N/95/CHN/Suppl.1-G/SCM/N/123/CHN/Suppl.1-G/SCM/N/155/CHN/Suppl.1- G/SCM/N/186/CHN/Suppl.1-G/SCM/N/220/CHN/Suppl.1-G/SCM/N/253/CHN/Suppl.1- G/SCM/N/284/CHN/Suppl.1; 29 July 2016. G/SCM/Q2/CHN/74
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Opinion on the Implementation of State Council Deployment of Accelerating the Cultivation and Development of Strategic Emerging Industries, Guangdong Provincial People's Government, Yue Fu [2011] No. 87 (20 July 2011).
Gansu Province Plan on the Implementation of the Strategic Emerging Industries Development Overall Campaign, Gansu Provincial People's Government, Gan Zheng Fa [2014] No. 87 (15 September 2014).
Gansu Province Measure for the Administration of the Strategic Emerging Industries Development Provincial-Level Financial Funding Investment, Gansu Provincial People's Government, Gan Zheng Ban Fa [2014] No. 176 (3 November 2014).
Zhejiang Province Interim Measure on the Administration of the Strategic Emerging Industries Finance Special Fund, Zhejiang Province Department of Finance, Zhe Cai Qi [2012] No. 152 (22 May 2012).
Ningbo City Rule on the Strategic Emerging Industries Development Special Administration (Trial), Ningbo City Accelerating the Cultivation and Development of Strategic Emerging Industries Work Leading Small Group Office, Yong Xin Ling Ban [2013] No. 2 (9 April 2013).
Ninghai County Opinion on the Implementation of Accelerating the Cultivation and Development of Strategic Emerging Industries, Ninghai County People's Government, Ning Dang Fa [2013] No. 27 (16 August 2013).
Ninghai County Notice on Transmitting Down the 2015 Ningbo City Strategic Emerging Industries Development Special Financial Subsidies, Ninghai County Development and Reform Bureau, Ninghai County Finance Bureau, Ning Fa Gai [2015] No. 23 (22 May 2015).
CPC Wenzhou City Ouhai District Commission and Wenzhou City Ouhai District People's Government Opinion on the Implementation of Accelerating the Cultivation and Development of Strategic Emerging Industries (Trial), CPC Wenzhou City Ouhai District Commission, Wenzhou City Ouhai District People's Government, Ou Wei Fa [2012] No. 91 (20 July 2012).
Ouhai District Measure on the Administration of the Cultivation and Development of Strategic Emerging Industries Special Fund (Trial), Wenzhou City Ouhai District People's Government, Wen Ou Zheng Ban Fa [2013] No. 79 (9 May 2013).
Sichuan Province Measure on the Use and Administration of the Strategic Emerging Industries Development Special Fund, Sichuan Provincial People's Government, Chuan Ban Fa [2012] No. 22 (11 April 2012).
Sichuan Province Rule on the Implementation of the Measure on the Use and Administration of the Strategic Emerging Industries Development Special Fund, Sichuan Province Industrialization and Urbanization Work Leading Small Group, Chuan Gong Cheng [2012] No. 1 (4 June 2012).
Jiangsu Province Interim Measure on the Administration of the Provincial-Level Strategic Emerging Industries Development Special Fund, Jiangsu Provincial People's Government, Su Zheng Ban Fa [2012] No. 172 (25 September 2012).
Heilongjiang Province 12th Five-Year Plan on Strategic Emerging Industries Development, Heilongjiang Provincial Development and Reform Commission (19 August 2015).
Xinjiang Uyghur Autonomous Region Interim Measure on the Administration of the Strategic Emerging Industries Special Fund, Xinjiang Uyghur Autonomous Region Department of Finance, Xinjiang Uyghur Autonomous Region Economic and Informatization Commission, Xin Cai Jian [2011] No. 728 (29 November 2011).
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3. China has stated that its steel companies do not receive any specific subsidies. Is it China’s position that none of the hundreds of line items listed in the annual reports of the steel companies in China under the heading of "Government Subsidies" or "Government Grants" should be notified?2 Is it not China’s position that these are all sub-central support measures?
4. China has stated that it is "considering" notification of its fisheries subsidies. Since becoming a WTO Member, China has not notified nearly all of its wild capture fishery subsidy programs. Based on China’s 2014 Trade Policy Review and the United States’ 2016 counter-notification of Chinese fisheries subsidies3, it appears that in recent years, subsidies for fishing boat construction/acquisition or renovation are primarily, if not exclusively, provided at the sub-central level. Based on estimates from China’s Ministry of Agriculture, as of 2015 2,700 distant water fishing vessels are in operation, and that compared to 2010 at the end of the "Eleventh Five-year Plan," the number of distant water fishing vessels has increased by 60 percent. Why were none of the provincial boat construction/acquisition or renovation programs included in China’s sub-central notification?
5. Why did China not include in its sub-central notification the subsidy measures listed below relating to the Internationally-Well Known Brand program?
Notice on Organizing and Carrying Out the 2013-2015 "Anhui Famous Export Brands" Selection Work, Wan Shang Mao Fa Zi [2013] No. 248, Anhui Province Department of Commerce (20 May 2013).
Notice Recommending the 2014-2015 Chongqing International Well-known Brand Enterprises, Chongqing Municipality Foreign Trade and Economic Commission (28 February 2014).
Opinion on Support for Foreign Trade and Economic Development Several Policies, Rong Wei Fa [2011] No. 47, Rongchang County Economic and Trade Committee (2011).
Notice on Organizing "2014-2016 Fujian Province Key Cultivation and Development International Well-Known Brands" Selection, Fujian Province Department of Commerce, Min Shang Wu Wai Mao [2014] No. 22 (15 September 2014).
Fujian Province Foreign Trade and Economic Cooperation Bureau Passing on the Ministry of Commerce and Eight Agency [Issued] Guiding Opinion on Promoting International Well-Known Brands Cultivation Work, Min Wai Jing Mao Fa [2009] No. 16 (27 April 2009).
Notice on Doing Well the 2014-2016 Fujian Province Key Cultivation and Development International Well-Known Brands Application Work, Fujian City Foreign Trade and Economic Cooperation Bureau (7 August 2014).
Notice on Organizing Enterprises to Apply for the 2014-2016 "Fujian Province Key Cultivation and Development International Well-Known Brands", Quanzhou City Foreign Trade and Economic Cooperation Bureau (5 August 2014).
Notice on Recommending the 2013-2014 "Fujian Province Key Cultivation and Development International Well-Known Brands" Enterprises, Fujian City Foreign Trade and Economic Cooperation Bureau (20 July 2011).
Notice on Advancing Stone, Ceramic, and Kitchen and Bathroom Industry Steady Healthy Development Twenty Policies, Nan Wei Ban [2015] No. 16, CPC Nan'an City Committee Office, Nan'an City People's Government (3 February 2015).
2 See G/SCM/Q2/CHN/70. 3 See G/SCM/Q2/CHN/59.
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Implementing Opinion on Accelerating Industrial Leapfrog Development, Zhang Wei Fa [2015] No. 3, CPC Zhangzhou City Committee, Zhangzhou City People's Government (7 February 2015).
Notice on Several Measures to Advance the Textile, Shoe, and Clothing Industry's Healthy Development, Quanzhou City People's Government (6 January 2015).
Opinions on Promoting the Upgrade and Development of the Manufacturing Sector, Jin Zheng Wen [2013] No. 64, Jinjiang City People's Government (25 March 2013).
Notice on Passing on Jimei District Measure on Implementing Standardization and Brand Development Strategic Rewards, Ji Fu Ban [2012] No. 113, Xiamen City Jimei District People's Government (6 December 2012).
Dehua County Three-Year Action Plan for Further Promoting Enterprises' Indigenous Innovation, De Zheng [2011] No. 176, Dehua County People's Government (12 May 2011).
Several Opinions on Implementing Brand Strategic Development and Brand Economy, Xia Fu [2011] No. 349, Xiamen City People's Government (24 August 2011).
Guiding Opinion on Promoting Foreign Economic and Trade Enterprises' Indigenous Innovation and Indigenous International Well-Known Brand Construction, Yue Wai Jing Mao Ting Zi [2011] No. 12, Guangdong Province Foreign Trade and Economic Bureau (27 September 2011).
Notice on Carrying Out Guangzhou City 2012-2013 Key Cultivation and Development Indigenous International Well-Known Brands Enterprise Designation Work, Guangzhou City People's Government (30 July 2012).
Work Plan for the 2011-2013 Guangdong Province Foreign Trade and Economic Bureau Key Cultivation and Development International Well-Known Brands Designation, Yue Wai Jing Mao Ji Zi [2011] No. 7, Guangdong Province Foreign Trade and Economic Bureau (2011).
Haojiang District Measures on Promoting Foreign Trade Import and Export Development (Trial), Shan Hao Fu Ban [2012] No. 69, Shantou City Haojiang District People's Government (26 April 2012).
Dongguan City Support Measure for Processing Trade Enterprises Brand Creation, Dong Fu Ban [2012] No. 118, Dongguan City People's Government (3 August 2012).
Preferential Policies to Support Foreign-invested Enterprise Trademark Registration and International Well-Known Brands, Dongguan City People's Government (2012).
Implementing Opinion to Further Promote Henan Province International Well-Known Brands Cultivation and Construction Work, Yu Shang Mao [2010] No. 9, Henan Province People's Government, Henan Province Development and Reform Commission, Henan Province Department of Finance, Henan Province Department of Science and Technology, Zhengzhou Customs of the People's Republic China, Henan Province Administration of Taxation, Henan Exit-Entry Inspection and Quarantine Bureau of the People's Republic of China (19 May 2010).
Opinion on Promoting International Well-Known Brands Cultivation Work, Hebi City People's Government (22 September 2009).
Notice on Organizing the Recommendation and Selection of the 2013-2015 "Henan Province International Well-Known Brands" Activities, Henan Province Department of Commerce (5 January 2013).
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Henan Province Selection Measure on International Well-Known Products (May 19, 2010).
Notice on the Issuance of the Kaifeng City Award Measures for Attracting Business and Investment Target Administration Evaluation and the Kaifeng City Award Measure on Foreign Trade Work Evaluation, Bian Zheng [2015] No. 18, Kaifeng City People's Government (15 February 2015).
Opinion on Accelerating Feicheng Brand Construction, CPC Feicheng Committee, Feicheng City People's Government (22 August 2013).
Opinion on Promoting Foreign Trade Accelerated Development, Zheng Zheng [2012] No. 26, Zhengzhou City People's Government (12 June 2012).
Notice on Carrying Out the 2010 Hubei Province International Well-Known Brands Selection and Application Work, E Shang Wai [2010] No. 21, Hubei Province Department of Commerce (30 July 2010)
Implementing Opinion on Promoting International Well-Known Brands Cultivation Work, Hunan Province Department of Commerce, Hunan Province Development and Reform Commission, Hunan Province Department of Finance, Hunan Province Department of Science and Technology, Changsha City Customs, Hunan Province Administration of Taxation, Hunan Province Administration for Industry and Commerce, Hunan Province Administration of Quality Supervision, Inspection, and Quarantine, Exit-Entry Inspection and Quarantine Bureau (7 August 2009).
Notice on Candidate Nomination for the 2015 "Hunan International Well-Known Brands", Xiang Shang Mao [2015] No. 17, Hunan Province Department of Commerce (5 June 2015).
Notice on Candidate Nomination for the 2014 "Hunan International Well-Known Brands", Xiang Shang Mao [2014] No. 19, Hunan Province Department of Commerce (6 May 2014).
Notice on Candidate Nomination for the 2013 "Hunan International Well-Known Brands", Xiang Shang Mao Fa [2013] No. 16, Hunan Province Department of Commerce (15 May 2013).
Measure for the Hunan Province International-Well Known Brands Designation and Administration, Xiang Shang Mao Fa [2010] No. 8, Hunan Province Department of Commerce (2 April 2010).
Notice on Doing Well the 2013 Hunan Province Foreign Trade Development Fund Project Application, Xiang Shang Cai [2013] No. 57, Hunan Province Department of Commerce, Hunan Province Department of Finance (17 June 2013).
Opinion on Accelerating Foreign Trade Development, Xiang Xiang Zheng Fa [2013] No. 6, Xiangxiang City People's Government (23 May 2013).
Implementing Opinion on Accelerating Industrial Development, Xintian County People's Government (20 November 2013).
Measure on Industrial Enterprise Development Preferential Policies and Rewards, Hongjiang City People's Government (7 March 2012).
Changde City Interim Measure on Continuation of Industrial Shifting Development and Processing Trade Guiding Fund Administration, Changde City People's Government (24 February 2012).
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Several Policies for the Implementation of Accelerating Development and Open Economy, Xiang Zheng Fa [2011] No. 8, Hunan Provincial People's Government (4 May 2011).
Provision on Encouraging the County's Industrial Economic Development Zones and Industrial Development, Long Fa [2010] No. 12, CPC Longhui County Committee, Longhui County People's Government (30 December 2010).
Inner Mongolia Implementing Plan on Promoting International Well-Known Brands Cultivation Work "Ten Thousand Talent Program" (Trial), Nei Mao Cu Shang Zi [2014] No. 5, Inner Mongolia Chamber of International Commerce (27 November 2014).
Notice on Carrying out 2015 "Inner Mongolia Key Cultivation and Development International Well-Known Brands" Selection and Designation Work, Nei Pin Gong Wei Zi [2015] No. 1, Inner Mongolia International Well-Known Brands Cultivation Work Committee (16 March 2015).
Notice on Passing Down the 2014-2016 Jiangsu Province International Well-Known Brands Cultivation Work Key Points, Su Shang Mao [2014] No. 18, Jiangsu Province Department of Commerce (8 January 2014).
City Government Office Notice on Passing on the Wuxi City Cultivation of Province International Well-Known Brands Three Year Action Plan, Xi Zheng Ban Fa [2011] No. 275, Wuxi City People's Government (19 October 2011).
Measure on the 2014-2016 Jiangsu Province Key Cultivation and Development Province International Well-Known Brands Selection, Jiangsu Province (2014).
Notice on Organizing and Applying for the 2014-2016 Jiangsu Province Key Cultivation and Development Province International Well-Known Brands, Nanjing City Bureau of Commerce (13 January 2014).
Implementing Rules on the 2014-2015 Suzhou City Export Brand Selection, Suzhou City Commerce Bureau (2014).
Notice on Carrying Out the 2013-2014 Suzhou City Export Brand Selection Work, Shang Wai Mao [2013] No. 277, Suzhou City Commerce Bureau (31 May 2013).
Selection Standards for the 2013-2014 Wuxi City Key Cultivation and Development International Well-Known Brands, Wuxi City Commerce Bureau (2013).
Implementing Rules on the 2012-2013 Suzhou City Export Brand Selection, Suzhou City Commerce Bureau (2012).
Notice on the Selection of the 2012-2013 Nantong City Key Cultivation and Development Province International Well-Known Brands, Nantong City Commerce Bureau (21 February 2012).
Notice on Carrying Out the 2011-2013 Jiangsu Province Key Cultivation and Development Province International Well-Known Brands Selection Work, Jiangsu Province Department of Commerce (12 January 2011).
Implementing Rule on the 2011-2012 Suzhou City Export Brands Selection, Suzhou City Commerce Bureau (5 August 2011).
Measure on the Selection of Hua'an City Export Brands, Huai Zheng Ban Fa [2011] No. 127, Huai'an City People's Government (14 September 2011).
Opinion on Several Policies to Promote the Entire City's Industrial Economic Transformation and Upgrade, Qi Zheng Fa [2015] No. 10, Qidong City People's Government (4 February 2015).
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Measure on the Implementation of Nanjing City Support of Foreign Trade Steady Growth, Nanjing City People's Government (13 August 2014).
Measure on the 2014 Foreign Trade Steady Growth Special Fund Administration and Use, She Shang Wu [2014] No. 62, Sheyang County Commerce Bureau, Sheyang County Finance Bureau (26 July 2014).
Taicang City Measure on Promoting Foreign Trade Import and Export Development Rewards, Tai Zheng Gui [2014] No. 1, Taicang City People's Government (26 June 2014).
Implementing Opinion on the 2014 Provincial-level Commerce Development Fund to Support Foreign Trade Transformation and Upgrade, Su Cai Gong Mao [2014] No. 75, Jiangsu Province Department of Finance, Jiangsu Province Department of Commerce (25 June 2014).
Implementing Opinion on Lianyungang City Supporting Foreign Trade Steady Growth, Lian Zheng Ban Fa [2014] No. 115, Lianyungang City People's Government (20 August 2014).
Implementing Rule on Pei County Commerce Development Special Fund Supporting Foreign Trade Steady Growth (2013 Revised Version), Pei County Finance Bureau, Pei County Commerce Bureau (15 October 2013).
Measure on 2013 Taicang City Promoting Foreign Trade Import and Export Development Rewards, Tai Zheng Fa [2013] No. 61, Taicang City People's Government (9 July 2013).
Opinion on Promoting Foreign Trade Development Several Policies, Nantong City People's Government (14 June 2012).
Measure on the Administration of the Provincial Commerce and Development Special Fund (Interim), Suqian City Finance Bureau, Suqian City Commerce Bureau (2012).
Nanjing City Supporting Foreign Trade Transformation and Upgrade and Commerce Development Special Fund Application Requirements and Tables, Nanjing City Commerce Bureau (2011).
Kunshan City Measure on the Administration of Provincial-Level Commerce Development Special Fund Use, Kunshan City Finance Bureau, Kunshan City Commerce Bureau (12 August 2011).
Notice on the Issuance of the 2014-2016 Jiangsu Province Key Cultivation and Development International Well-Known Brands List, Su Shang Mao [2014] No. 631, Jiangsu Province Department of Commerce (16 July 2014).
Notice on Applying for the "Shaanxi Province International Well-Known Brand Enterprises", Shaan Shang Fa [2010] No. 621, Shaanxi Province Department of Commerce, Shaanxi Province Department of Finance (1 November 2010).
Notice on Organizing the 2014-2016 "Shandong Province Key Cultivation and Development International Well-Known Brands" Selection Activities, Lv Shang Zi [2014] No. 95, Shandong Province Department of Commerce (21 May 2014).
Notice on Organizing the Application for the 2014-2016 "Shandong Province Key Cultivation and Development International Well-Known Brands", Weifang City Commerce Bureau (26 May 2014).
Notice on Organizing, Recommending Our City's Enterprises to Participate in the 2014- 2016 "Shandong Province Key Cultivation and Development International Well-Known Brands", Qingdao City Commerce Bureau (4 June 2014).
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Notice on Doing Well the 2013 Foreign Trade Development Special Fund Application Work, Lu Cai Qi [2013] No. 20, Shandong Province Department of Finance, Shandong Province Department of Commerce (15 May 2013).
Notice on Carrying Out the Shandong Province Key Cultivation and Development International Well-Known Brands Selection Work, Shandong Province Department of Commerce (7 September 2011).
Opinion on Further Accelerating Open Economic Development, Qu Zheng Fa [2013] No. 14, Qufu City People's Government (14 August 2013).
Opinion on Accelerating Foreign Trade Transformation and Upgrade and Promoting Foreign Trade Good and Fast Development, Lai Zheng Fa [2012] No. 43, Laiwu City People's Government (12 November 2012).
Rule on the Tianjin Municipality Exit-Entry Inspection and Quarantine Bureau Promoting International Well-Known Brands Cultivation Work, Jin Jian Ren [2010] No. 0155, Tianjin Municipality Exit-Entry Inspection and Quarantine Bureau (19 July 2010).
Notice on Carrying Out the 2011 "Tianjin Municipality International Well-Known Brands" Designation Work, Tianjin Municipality Commerce Committee (15 November 2011).
Notice on Carrying Out the 2014 "Zhejiang Export Brands" Designation Work, Zhe Shang Wu Mao Fa [2014] No. 104, Zhejiang Province Department of Commerce (20 June 2014).
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