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G/SCM/N/343/CHN 19 July 2019 (19-4822) Page G/SCM/N/343/CHN 19 July 2019 (19-4822) Page: 1/249 Committee on Subsidies and Countervailing Measures Original: English SUBSIDIES NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES CHINA The following communication, dated 30 June 2019, is being circulated at the request of the delegation of China. _______________ The following notification constitutes China's new and full notification of information on programmes granted or maintained at the central and sub-central government level during the period from 2017 to 2018. The information provided in this notification serves the purpose of transparency. Pursuant to Article 25.7 of the SCM Agreement, this notification does not prejudge the legal status of the notified programmes under GATT 1994 and the SCM Agreement, the effects under the SCM Agreement or the nature of the programmes themselves. China has included certain programmes in this notification which arguably are not (or are not always) subsidies or specific subsidies subject to the notification obligation within the meaning of the SCM Agreement. G/SCM/N/343/CHN - 2 - TABLE OF CONTENTS SUBSIDIES AT THE CENTRAL GOVERNMENT LEVEL .......................................................... 6 1 PREFERENTIAL TAX POLICIES FOR CHINESE-FOREIGN EQUITY JOINT VENTURES ENGAGED IN PORT AND DOCK CONSTRUCTION ............................................................... 6 2 PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN INVESTMENT ESTABLISHED IN SPECIAL ECONOMIC ZONES (EXCLUDING SHANGHAI PUDONG AREA) . 7 3 PREFERENTIAL TAX POLICIES FOR ENTERPRISES WITH FOREIGN INVESTMENT ESTABLISHED IN PUDONG AREA OF SHANGHAI ............................................................... 8 4 PREFERENTIAL TAX POLICIES IN THE WESTERN REGIONS ......................................... 9 5 PREFERENTIAL TAX POLICIES FOR HIGH OR NEW TECHNOLOGY ENTERPRISES ....... 10 6 PREFERENTIAL TAX POLICIES FOR THE ADDITIONAL CALCULATION AND DEDUCTION OF RESEARCH AND DEVELOPMENT (R&D) EXPENSES ..................................................... 11 7 PREFERENTIAL TAX POLICIES FOR ENTERPRISES TRANSFERRING TECHNOLOGY ..... 12 8 PREFERENTIAL TAX POLICIES FOR THE INCUBATORS OF SCIENCE AND TECHNOLOGY ENTERPRISES................................................................................................................. 13 9 PREFERENTIAL TAX POLICIES FOR THE SCIENCE AND TECHNOLOGY PARKS OF NATIONAL UNIVERSITIES .............................................................................................. 14 10 PREFERENTIAL TAX POLICIES FOR SERVICE ENTERPRISES WITH ADVANCED TECHNOLOGY ................................................................................................................. 14 11 PREFERENTIAL TAX TREATMENT FOR PUBLIC INFRASTRUCTURE PROJECTS THAT ARE PARTICULARLY SUPPORTED BY THE STATE. ........................................................... 15 12 PREFERENTIAL TAX TREATMENT FOR PROJECTS FOR ENVIRONMENTAL PROTECTION, WATER AND ENERGY CONSERVATION ..................................................... 16 13 PREFERENTIAL TAX TREATMENT FOR BUILDING MATERIALS PRODUCTS PRODUCED WITH INTEGRATED UTILIZATION OF RESOURCES ......................................................... 17 14 PREFERENTIAL VAT ON INTEGRATED UTILIZATION OF RESOURCES ....................... 18 15 PREFERENTIAL VAT ON NEW-TYPE WALL MATERIALS ............................................. 19 16 PREFERENTIAL CONSUMPTION TAX ON PETROLEUM PRODUCTS PRODUCED WITH COMPREHENSIVE UTILIZATION OF RESOURCES ............................................................ 20 17 PREFERENTIAL VAT ON PHOTOVOLTAIC-GENERATED ELECTRICITY ........................ 21 18 PREFERENTIAL VAT ON HYDROPOWER ELECTRICITY .............................................. 22 19 PREFERENTIAL TAX TREATMENT FOR ENERGY-SAVING AND NEW ENERGY VEHICLES AND VESSELS ................................................................................................................. 23 20 PREFERENTIAL TAX TREATMENT FOR URBAN PUBLIC TRANSPORTATION ENTERPRISES THAT PURCHASE PUBLIC BUSES AND TROLLEYBUSES ............................. 24 21 PREFERENTIAL VEHICLE PURCHASE TAX ON LOW-EMISSION CARS ........................ 24 22 PREFERENTIAL TAX POLICIES FOR CLEAN DEVELOPMENT MECHANISM .................. 25 23 PREFERENTIAL INCOME TAX POLICIES FOR SMALL AND MICRO ENTERPRISES ...... 26 24 PREFERENTIAL VAT POLICIES FOR SMALL ENTERPRISES MAKING LITTLE PROFITS 27 25 EXEMPTION FROM PAYMENT OF GOVERNMENTAL FUNDS FOR SMALL AND MICRO ENTERPRISES................................................................................................................. 28 26 EXEMPTION FROM PAYMENT OF GOVERNMENTAL FUNDS ....................................... 29 27 PREFERENTIAL VAT POLICIES FOR ENTERPRISES THAT EMPLOY DISABLED PEOPLE ...................................................................................................................................... 30 28 PREFERENTIAL INCOME TAX POLICIES FOR ENTERPRISES EMPLOYING DISABLED PEOPLE .......................................................................................................................... 30 G/SCM/N/343/CHN - 3 - 29 PREFERENTIAL TAX TREATMENT FOR IMPORTED PRODUCTS EXCLUSIVELY USED BY DISABLED PEOPLE ......................................................................................................... 31 30 PREFERENTIAL TAX TREATMENT FOR PRODUCTS FOR THE DISABLED PEOPLE........ 32 31 PREFERENTIAL TAX TREATMENT FOR ENTERPRISES PRODUCING PRODUCTS EXCLUSIVELY USED BY THE DISABLED PEOPLE ............................................................. 33 32 PREFERENTIAL TAX TREATMENT FOR ANTI-HIV-AIDS MEDICINE ........................... 34 33 PREFERENTIAL TAX POLICIES FOR PROJECTS OF AGRICULTURAL, FORESTRY, ANIMAL AND FISHERY ................................................................................................... 35 34 PREFERENTIAL TAX TREATMENT FOR TEA SOLD IN THE BORDER AREAS ................ 35 35 PREFERENTIAL TAX TREATMENT FOR IMPORTED PRODUCTS FOR THE PURPOSE OF REPLACING THE PLANTING OF POPPIES ........................................................................ 36 36 PREFERENTIAL TAX POLICIES ON IMPORTS OF SEEDS (SEEDLINGS) ...................... 37 37 PREFERENTIAL TAX POLICIES ON FILLING MINING AND MINING RESOURCES IN EXHAUSTION STAGE ...................................................................................................... 38 38 PREFERENTIAL TAX TREATMENT FOR IMPORT OF EQUIPMENT ............................... 39 39 TAX POLICIES ON URBAN LAND USE OF OIL AND GAS PRODUCTION ENTERPRISES 40 40 PREFERENTIAL CONSUMPTION TAX ON REFINED OIL ............................................. 40 41 TAX PREFERENCES FOR THE INTEGRATED CIRCUIT (IC) INDUSTRY ....................... 41 42 PREFERENTIAL VAT POLICIES FOR LARGE PASSENGER AIRCRAFTS AND NEW REGIONAL AIRCRAFT ..................................................................................................... 43 43 TAX PREFERENCES ON HOUSE PROPERTY AND URBAN LAND USE FOR ENTERPRISES DESIGNING AND MANUFACTURING LARGE PASSENGER AIRCRAFT AND ENGINE ........... 44 44 TAX PREFERENCES ENCOURAGING ENTERPRISES TO INCREASE EMPLOYMENT ...... 45 45 PREFERENTIAL TAX POLICIES FOR ACCELERATING DEPRECIATION OF FIXED ASSETS .......................................................................................................................... 46 46 PREFERENTIAL VEHICLE PURCHASE TAX FOR TRAILERS ......................................... 48 47 FUND FOR POVERTY ALLEVIATION.......................................................................... 48 48 FUND FOR DEVELOPMENT OF AGRICULTURE ........................................................... 49 49 SUBSIDY FOR AGRICULTURAL COMPREHENSIVE DEVELOPMENT ............................ 50 50 FUND FOR WATER RESOURCES DEVELOPMENT ....................................................... 51 51 FUND FOR DISASTER PREVENTION AND RELIEF FOR AGRICULTURE, FLOOD CONTROL AND DROUGHT ............................................................................................... 52 52 FUND FOR AGRICULTURAL RESOURCES AND ECOLOGICAL PROTECTION ................ 53 53 SUBSIDY FOR A NEW ROUND OF RETURNING CULTIVATED LAND TO FORESTS AND GRASSLAND ................................................................................................................... 54 54 FUND FOR ENERGY CONSERVATION AND EMISSION REDUCTION ........................... 54 55 FUND FOR AIR POLLUTION PREVENTION AND CONTROL ........................................ 55 56 FUND FOR DEVELOPMENT OF STRATEGIC EMERGING INDUSTRIES ......................... 56 57 FUND FOR THE DEVELOPMENT OF INTERNATIONAL ECONOMIC RELATIONS AND TRADE ............................................................................................................................ 57 58 REWARD FOR PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS ............................ 58 59 FUND FOR INDUSTRIAL TRANSFORMATION AND UPGRADING ................................ 59 60 REWARD AND SUPPORT FUND FOR RESTRUCTURING OF INDUSTRIAL ENTERPRISES ...................................................................................................................................... 60 61 SPECIAL FUND FOR THE DEVELOPMENT OF RENEWABLE ENERGIES ........................ 60 G/SCM/N/343/CHN - 4 - 62 SUBSIDY FUND FOR SURCHARGE ON THE ELECTRICITY PRICE OF RENEWABLE ENERGIES ...................................................................................................................... 61 63 REWARD AND
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