Doing Business with China

China is committed to abiding by the WTO Agreement on Subsidies and Countervailing Measures, eliminating export subsidies prohibited by the agreement and notifying the WTO on those subsidies allowed by the agreement.

China has committed itself to eliminating gradually the subsidies inconsistent with the WTO agreement, such as priority in obtaining loans and foreign currencies based on export performance. At the same time, China has reserved more than 20 subsidies that are consistent with the Agreement and they are listed in Annex 5 of the Protocol. The subsidies include: preferential policies for the SEZs, the economic and technology development areas, the special economic zone of the Pudong Area of Shanghai, and for foreign-invested enterprises , loans from the state policy banks, financial subsidies for poverty alleviation, funds for technology innovation, research and development, infrastructure construction funds for agricultural water conservancy and flood protection projects, tax and tariff refunds for export products, tariff and import duty reductions and exemption for enterprises, the provision of low-price inputs for special industrial sectors, subsidies to certain enterprises in the forestry industry, preferential income tax treatment to high-tech enterprises, to enterprises utilizing waste, to disaster stricken enterprises and to enterprises which provide job opportunities to the unemployed.