RESTRICTED WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOWT/ACC/CHN/38/Rev.1
28 September 2000
(00-3943)
Working Party on the
Accession of ChinaOriginal:  English/
anglais/
inglés
COMMUNICATION FROM CHINA
Revision
In preparation for the Working Party meeting on 13-28 September 2000, the Chinese
delegation has submitted the following document on Domestic Support.1
Groupe de travail de
l'accession de la Chine
COMMUNICATION DE LA CHINE
Révision
En vue de la réunion du Groupe de travai l qui aura lieu du 13 au 28 septembre 2000, la
délégation chinoise a communiqué le document ci-après concernant le soutien interne.1
Grupo de Trabajo sobre la
Adhesión de China
COMUNICACIÓN DE CHINA
Revisión
Para preparar la reunión del Grupo de Trabajo que se celebrará del 13 al 28 de septiembre
de 2000, la delegación china ha presentado el siguiente documento relativo a la ayuda interna.1
                                                     
1 In English only./En anglais seulement./En inglés solamente.WT/ACC/CHN/38/Rev.1
Page 2Supporting Table DS:  1
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Measures exempt from the re duction commitment – "Green Box"
Measure type Name and description of measure with reference to criteria in Annex 2Calendar
yearOutlay monetary value
of measure in year in
question
(million RMB yuan)Data
sources1
12 3 4 5
a) General services
1996 3551
1997 4078
1998 4545i) ResearchBudget allocations for research programmes and research activities at CAS,
CAAS, PAAS, local agricultural institutes,2 including expenditures on
development of agricultural varieties and experiments, and the three expenditures
on agro-science and technology.3  Exempt under Annex 2, para 2. (a) average 4058Outlay
Documentsof MOF
1996 1957
1997 2145
1998 2294ii) Pest anddisease controlOperating expenditures to the prevention and control agencies of plant and
animal pest and disease of MOA, SAF and sub-national governments.
4  Exempt
under Annex 2, para 2. (b)average 2132Outlay
Documentsof MOF
1996 194
1997 211
1998 220iii) TrainingExpenditures to agricultural training institutions5 of MOA, sub-national
governments, to establish general and special training facilities and conduct
training to farmers, administrative staffs and technical personnel in agriculture.
Exempt under Annex 2, para 2. (c) average 208Outlay
Documents
of MOF
1996 5635
1997 6111
1998 7008iv) Extension andadvisory servicesOperating expenditures of the agricultural extension and advisory institutions
6 of
MOA and sub-national governments.  Exempt under Annex 2, para 2. (d)
average 6251Outlay
Documents
of MOFWT/ACC/CHN/38/Rev.1
Page 3Measure type Name and description of measure with reference to criteria in Annex 2Calendar
yearOutlay monetary value
of measure in year in
question
(million RMB yuan)Data sources
12 3 4 5
1996 1016
1997 1436
1998 1500v) Inspection
servicesOutlays for inspection and quarantine agencies of agricultural products7, to
conduct inspection services including general inspection services and inspection
of particular products for health, safety, grading or standardization purposes.
Exempt under Annex 2, para 2. (e) average 1318Outlay
Documents
of MOF
1996 0
1997 0
1998 0vi) Marketingand promotionalservicesBeing unable to partition it from relevant outlay items, it is included under "viii)
Other general services" in this table.  Exempt under Annex 2, para 2. (f)
average 0
1996 40367
1997 44907
1998 60483vii) Infra-
structure servicesOutlays to agricultural infrastructure services, including flood control
engineering, drainage and irrigation facilities, rural roads, rural electricity
reticulation, as well as environmental programmes related to rural afforestation,
soil and water conservation.  Exempt under Annex 2, para 2. (g) average 48586Outlay
Documents
of MOF
1996 13928
1997 15654
1998 18435viii) Othergeneral servicesOperating expenditures related to buildings, facilities, salaries and expenses of
agricultural administrative and service agencies, including MOA, SAF, SMB and
MWR
8, as well as to provide pensions to retired employees of above agencies.
Exempt under Annex 2, para 2. average 16006Outlay
Documents
of MOF
1996 28773
1997 35335
1998 51027b) Publicstockholding forfood security
purposesOutlays of public stockholding of wheat, corn, rice, vegetable oils and sugar for
food security purposes.
9  Exempt under Annex 2, para 3.
average 38378Outlay
Documentsof MOF
1996 2012
1997 1875
1998 1766c) Domestic foodaidFinancial assistance to low-income urban and rural people is to help them attain
staple food.
10 Exempt under Annex 2, para 4.
average 1884Outlay
Documents
of MOF
1996 0
1997 0
1998 0d) Decoupled
income supportNo expenditures
average 0WT/ACC/CHN/38/Rev.1
Page 4
Measure type Name and description of measure with reference to criteria in Annex 2Calendar
yearOutlay monetary value
of measure in year in
question
(million RMB yuan)Data sources
12 3 4 5
1996 0
1997 0
1998 0e) income insurance
and income safety-
net programmesNo expenditures
average 0
1996 3791
1997 4042
1998 5453f) Payments for relief
from natural disastersOutlays for compensating farmers’ losses of agricultural production due to
natural disasters,11 and restoring farmland damaged by natural disasters, as well
as rebuilding damaged agricultural facilities.  Exempt under Annex 2, para 8.average 4429Outlay
Documents
of MOF
1996 0
1997 0
1998 0g) structural
adjustment assistance
provided through
producer retirementprogrammesNo expenditures
average0
1996 0
1997 0
1998 0h) structural
adjustment assistance
provided through
resource retirement
programmesNo expenditures
average0
1996 0
1997 0
1998 0i) structural
adjustment assistance
provided throughinvestment aidsNo expenditures
average 0
1996 4954
1997 5460
1998 5620j) Environmental
programmesOutlays for agricultural environment program, including afforestation, desert
control and prevention, water resources protection, water and soil conservation.
The payment is provided to environmental protection agencies and administrativeagencies of forestry, including SAEP, SAF and AEPs, AFs of sub-national
governments.
12  Exempt under Annex 2, para 12average5345Outlay
Documents
of MOFWT/ACC/CHN/38/Rev.1
Page 5Measure type Name and description of measure with reference to criteria in Annex 2Calendar
yearOutlay monetary value
of measure in year in
question
(million RMB yuan)Data sources
12 3 4 5
1996 6000
1997 10000
1998 11000k) Regional
assistance
programmesOutlays for poverty reduction programme.13  Exempt under Annex 2, para 13.
average 9000Outlay
Documents
of MOF
1996 112178
1997 131254
1998 210815Total
average 151416WT/ACC/CHN/38/Rev.1
Page 6Supporting Table DS:  2
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Measures exempt from the reduction commitment – Specia l and differential treatment – "Development Programmes"
Measure TypeName and description of measure with reference to criteria in
Article 6:2 of AOACalendar
yearMonetary value of
measure in year in
question
(million RMB yuan)Data
sources
12 3 4 5
1996 0
1997 0
1998 01) Investment subsidies
generally available to
agricultureAgricultural Loan Programme.14
average 0See notes
1996 1468
1997 1535
1998 8802) Input subsidies generally
available to low-income or
resource poor producersInterest Subsidy for Poverty Reduction Loans.15  Calculation details
see Attachment DS 2-2.   Exempt from Article 6:2 of AOA
average 1294See notes
1996 0
1997 0
1998 03) Domestic support to
producers to encouragediversification from growing
illicit narcotic cropsNo expenditures
average 0WT/ACC/CHN/38/Rev.1
Page 7Supporting Table DS:  3
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Measures exempt from the reduction commitment – Direct Payments  under Production-Limiting Programmes – "Exempt Direct Payments"
Measure TypeName and description of measure with
reference to criteria in Article 6:5 of
AOAYearMonetary value of measure
in year in questionData sources
12 3 4 5
NILWT/ACC/CHN/38/Rev.1
Page 8Supporting Table DS:  4
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Calculation of the Total Aggregate Measurement of Support
Description of basic productionProduct-specific AMS
(from Supporting Tables DS:5 to
DS:7 below)Product-specific Measurements of
Support (from Supporting Tables
DS:8 below)Current Total AMS
(aggregate) 16 Comments
12 3 4 5
mil RMB yuan
Wheat -9507 0 de minimis
Japonica Rice -9340 0 de minimis
Indica Rice -3869 0 de minimis
Corn 935 0 de minimis
Cotton -4997 0 de minimis
Total Non-Product-Specific AMS (from
Supporting Table DS:9 below)
281080 de minimis
Total AMS 0WT/ACC/CHN/38/Rev.1
Page 9Supporting Table DS:  5
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Product-Specific Aggregate Measurement of Support:  Market Price Support
Description of
basic productsCalendar
yearMeasure type (s)Applied administered
price17
(RMB yuan/ton)External reference
price 18&19
(RMB yuan/ton)Eligible
production20
('000 tons)Associated fees /
levies
(mil RMB yuan)Total market price
support
(mil RMB yuan)Data sources
12 3 4 5 6 7 8 9
1996 State Procurement Pricing 1480.0 1885.0 15000 -6075
State Procurement Pricing 1480.0 1629.6 15000 -22441997Protective Price System 1340.0 1629.6 31002 -8979
State Procurement Pricing 1420.0 1579.8 15000 -23971998Protective Price System 1260.0 1579.8 12956 -4144a) Wheat
averageSee notes
1996 State Procurement Pricing 2200.0 3682.9 5250 -7785
State Procurement Pricing 2200.0 2862.1 5250 -34761997Protective Price System 1971.4 2862.1 6452 -5746
State Procurement Pricing 2114.3 3326.9 5250 -63661998Protective Price System 1914.3 3326.9 3290 -4647b) Japonica
Rice
averageSee notes
1996 State Procurement Pricing 2142.9 3082.1 10500 -9862
State Procurement Pricing 2142.9 2033.0 10500 11531997Protective Price System 1885.7 2033.0 12903 -1901
State Procurement Pricing 1931.4 1913.9 10500 1841998Protective Price System 1734.3 1913.9 6580 -1182c) Indica Rice
averageSee notesWT/ACC/CHN/38/Rev.1
Page 10
Description of
basic productsCalendar
yearMeasure type(s)Applied administered
price
(RMB yuan/ton)External reference
price
(RMB yuan/ton)Eligible
production
('000 tons)Associated fees /
levies
(mil RMB yuan)Total market price
support
(mil RMB yuan)Data sources
12 3 4 5 6 7 8 9
1996 State Procurement Pricing 1120.0 1581.4 12500 -5767
State Procurement Pricing 1240.0 1075.8 12500 20521997Protective Price System 1100.0 1075.8 14422 349
State Procurement Pricing 1180.0 939.2 12500 30101998Protective Price System 1060.0 939.2 26174 3161d) Corn
averageSee notes
1996 State Procurement Pricing 14000.0 15306.3 4203 -5491
1997 State Procurement Pricing 14000.0 14708.6 4602 -3261
1998 State Procurement Pricing 12350.0 13736.5 4501 -6241e) Cotton
averageSee notesWT/ACC/CHN/38/Rev.1
Page 11Supporting Table DS:  6
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Product-Specific Aggregate Measurement of  Support:  Non-exempt Direct Payments
Description
of basic
productsYearMeasure
type(s)Applied
administered
price
(RMB/ton)External
reference
price
(RMB/ton)Eligible
production
('000 tons)Total price-
related direct
payments
(RMB million)Other non-
exempt direct
payments
(RMB million)Associated
fees/levies
(RMB million)Total direct
payments
(RMB million)Data sources
12 3 4 5 6 7 8 9 1 0 1 1
NILWT/ACC/CHN/38/Rev.1
Page 12Supporting Table DS:  7
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Product-Specific Equivalent Measurements of Support:  Other Product-Specific Support and Total Product- Specific AMS
Description of
basic productCalendar
yearMeasurement
type(s)Other product-
specific
budgetary outlaysOther product specific
support (include
calculation details)Associated
fees / leviesTotal other
product-specific
supportMarket price
support
(Supporting
Table DS:5)Non-exempt
direct
payments
(Supporting
Table DS:6)Total AMS Data
sources
1 2 3 4 5 6 7=(4+5-6) 8 9 10=(7+8+9) 11
mil RMB yuan
1996 -6075 -6075
1997 -11223 -11223
1998 -6541 -6541a) Wheat
average -7946 -7946
1996 -7785 -7785
1997 -9222 -9222
1998 -11014 -11014b) Japonica Rice
average -9340 -9340
1996 -9862 -9862
1997 -747 -747
1998 -998 -998c) Indica Rice
average -3869 -3869
1996 -5767 -5767
1997 2401 2401
1998 6171 6171d) Corn
average 935 935
1996 -5491 -5491
1997 -3261 -3261
1998 -6241 -6241e) Cotton
average -4997 -4997WT/ACC/CHN/38/Rev.1
Page 13Supporting Table DS:  8
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Product-Specific Equivalent Measurements of Support
Description
of basic
productsYearMeasure
type(s)Applied
administered
priceProduction
eligible to
receive the
applied
administered
priceMarket
price
support
budgetary
outlaysEquivalent
measurement o f
support
(include
calculation
details)Non-
exempt
direct
paymentsOther
product-
specific
supportAssociated
fees/leviesTotal monetary
value of
equivalent
commitmentData sources
12 3 4 5 6 7 8 9 1 0 1 1 1 2
NILWT/ACC/CHN/38/Rev.1
Page 14Supporting Table DS:  9
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Non-Product-Specific AMS
Measure type(s)Calendar
yearNon-product-specific
budgetary outlaysOther non-product-specific
support (include calculated details)Associated
fees/leviesTotal non-product-
specific supportData sources
1 2 3 4 5 6=3+4-5 7
mil RMB yuan
1996 26559 26559
1997 24524 24524
1998 33242 33242a) Input subsidies21
average 28108 28108Outlay
Documents of
MOF
1996 26559
1997 24524
1998 33242Total
average 28108WT/ACC/CHN/38/Rev.1
Page 15Supporting Table ES:  1
DOMESTIC SUPPORT: People’s Republic of China
REPORTING PERIOD: 1996-1998
Export Subsidies:  Outlay and Quantity
NILWT/ACC/CHN/38/Rev.1
Page 16                                                      
Notes
1 The data in the table are outlays for calendar years, which come from Outlay Documents of the Ministry of Finance. The outlay data includes both the outlays of the national
and sub-national governments.
2 All abbreviations in the Supporting Tables are detailed in the Attachment DS1-1.  CAS, CAAS, PAAS and local agricultural insti tutes are public agricultural institutes set up by
governments at different levels.  Their major mission is to make  agro-scientific research, including improved varieties develop ment, plant protection, dry farming and water-
saving irrigation, soil and water conservation, plant and animal sciences, and integrated agricultural systems.
3 The three expenditures on agro-science and technology:  an outla y heading for public agricultural institutes in the budget all ocations, including expenditures on new varieties
research, intermediate experiment and grants for key research projects.
4 Agencies for pest and disease control of plants and animals are public institutions established under the supports of the nati onal and sub-national governments.  NATEC under
MOA sets up plant pest and disease inspection division, prevention and treatment division, medical equipments division and plan t quarantine division.  NATEC is responsible for
the nation-wide pest and disease control of plants.  Under MOA,  there is also NHVS, which is responsible for nation-wide inspec tion and prevention of animal diseases.  ATECs
and HVSs are also established at various leve ls from provincial to township's, which take charge of the prevention of plant and  animal diseases in their respective regions.  The
outlays are from the financial departments at different levels.
5 Agricultural training institutions are established by governments at different levels, including International Exchange Servic e Center under MOA, Central Broadcast and TV
School for Agriculture, and Agricultural Training Colleges /Center, which provide training to agricultural administrative staff  as well as technical training to farmers.  Sub-
national governments also set up their own agricultural training centers.  Operating expenditures of the institutions are from budget allocation of governments at various levels.
6 Extension and advisory institutions of agriculture are public institutions established by governments at various levels, inclu ding NATEC, NATES, and NAMTDES under MOA,
and ATECs, ATESs, and AMTDESs at sub-national levels. These institutions are indulged in extension and advisory services to agr icultural producers and funded by the budget
allocation at various levels.
7 Inspection and quarantine agencies of agricultural products, such as SAIQ, are responsible for inspection and quarantine of im ported and exported animals and plants, and PEI,
VDSI, AQI under MOA are responsible for monitoring and supervision of pesticide residue, veterinary drug residue and animal dis ease.  Expenses of these institutions are
covered by expenditures of governments at different levels.
8 Expenditures for other general services also include expenses of the following non-profit institutions: ASRCC under MOA which is responsible for providing support to rural
cooperative economic organizations and monitoring farmers’ income;  TVEs Development Center under MOA which is to provide servi ces to TVEs; the Administrations of
Fishing and Fish Harbors in South Sea, East Sea, Huanghai and Bohai Sea under MOA which are responsible for development of fish ing industry; the Agricultural Information
Center under MOA, providing official information on production and prices of agricultural products to the public; the Agricultu re Fair Office under MOA, holding the national
wide agricultural fairs.  Expenditures of those institutions, as well as their payment for retired staff are included in this h eading.
9 In order to safeguard food security, Chinese government set up Buffer Reserve System to agricultural products that have a sign ificant bearing on the national economy and
people's livelihood, namely wheat, rice, corn, vegetable oil and sugar.  In the 1996-1998 base period, the buffer reserve of gr ain for food security purposes was conducted in the
following ways:
(1) Wheat, rice and corn :  the state stipulates government procurement quota and government procurement price of wheat, rice and corn, as shown in the AMS
calculation of wheat, rice and corn in Supporting Table DS 5.  State-owned grain enterprises at provincial, county and township -level designated by the state purchasedWT/ACC/CHN/38/Rev.1
Page 17                                                                                                                                                                                                                                                                   
wheat, rice and corn at the government procurement price within th e quota limit, and then turn their procurement to state-owned  grain reserve enterprises for holding.
When grain provision safety was threatened because of natural di sasters or reduction of grain production, the designated state- owned grain enterprises sold reserved
grain at market price.  Outlays for the programme cover all the operating cost, including tran sportation and storage cost, and loan interest. The information is provided
based on the footnote 5 of Annex 2.
(2) Vegetable oil and Sugar :  the state will purchase vegetable oil and sugar at market price through commercial companies, and store the purchase through
commercial reserve enterprises.  At the time of force majeure and natural disaster when food security of residence was threaten ed and base nutrition level decreased,
the state would sell the vegetable oil and sugar at the market price. Outlays for the reserve programme cover operating cost re lated to transportation, storage and loan
interest.
10 People eligible for food assistance in 1996 and 1997 were people of "no working ability, no dependence and no income source".  From 1998, people eligible for the food
assistance should be those under the minimum income guarantee lines defined by governments at various levels.  Food assistance is provided by governments in forms of cash
and food commodities to help people attain staple food.
11 Eligibility to such a payment for farmers is decided by a production loss which exceeds 70% of the average of production in th e preceding three-year period. The government
assesses the loss of agricultural production based on statistics provided by MCA, SMB, MOA/PDA, MWR and SSB, and makes verifica tion by dispatching a working group to
disaster-stricken areas. The group composed of officials from al l relevant governmental agencies will conduct field investigati on as well as collect local public opinions.
12 AEPs and AFs at the national and sub-national levels are responsible for implementation of environment protective program.  Ch ina increased outlays for bioenvironmental
programme and set up the programme of natural forestry protection in 1998.
13 Poverty reduction programme:  in the 1996-98 base period, there were 592 poor counties recognized by the state, where the per capita annual net-income of the rural residence
was less than RMB 400 yuan (1990's price) and per capita daily calorie intaking was less than 2100 kilocalorie. These state-gra ded poor counties scatter in 26 provinces and
autonomous regions. Among them, 73 poor counties are in Yunnan province; 50 in Shannxi province; 48 in Guizhou province; 43 in Sichuan province; 39 in Hebei province; 35
in Shanxi province; 28 in Henan Province; 28 in Guangxi Province; 25 in Xinjiang Autonomous Region; 25 in Hubei Province; 18 in  Jiangxi Province; 17 in Qinhai Province; 10
in Hunan Province; 10 in Shandong Province; 5 in Tibet; 11 in Heilongjiang Province; 9 in Liaoning; 8 in Ningxia; 8 in Fujian; 5 in Haina.
Financial outlays for poverty reduction are to help poor areas develop the following projects: small-scale reservoirs, farmland  facilities, drinking water projects, afforestation,
pasture establishment, road and bridge, rural hydro-power sta tion, electricity transmission lines, rural market and schools.
The payments also serve specific agricultural development progra mmes for Dingxi and Hexi prefectures (in Gansu Province) and Xi haigu prefecture (in Ningxia Autonomous
Region) in Northwest China.WT/ACC/CHN/38/Rev.1
Page 18                                                                                                                                                                                                                                                                   
Attachment DS1-1: The Definition of Abbreviations:
ABC Agricultural Bank of China
ADBC Agricultural Development Bank of ChinaAEPs Provincial or county level Administration of Environmental Protection
AFs Provincial or county level Administration of Forest
AMTDES Agricultural Mechanization Technology Development and Extension StationAQI Animal Quarantine Institute
ASRCC Administrative Station of Rural Cooperative Economy
ATECs Agro Technical Extension CenterATESs Aquatic Technology Extension Station
CAAS Chinese Academy of Agricultural Sciences
CAS Chinese Academy of SciencesCATEC County-level Agro technical Extension Center
FD Provincial or county level Financial Department
HVSs Husbandry and Veterinary StationICBC Industrial and Commercial Bank of China
MATEC Municipal/Prefectural-level Agrotechnical Extension Center
MCA Ministry of Civil AffairsMFTEC Ministry of Foreign Trade and Economic Cooperation
MOA Ministry of Agriculture
MOF Ministry of FinanceMOST Ministry of Sciences and Technology
MWR Ministry of Water Resources
NAMTDES National Agricultural Mechanization Technology Development and Extension StationNATEC National-level Agrotechnical Extension Center
NATES National-level Aquatic Technology Extension Station
NHVS National Husbandry and Veterinary StationPAAS Provincials Academy of Agricultural Sciences
PADO Poor Area Development Office
PATEC Provincial-level Agrotechnical Extension CenterWT/ACC/CHN/38/Rev.1
Page 19                                                                                                                                                                                                                                                                   
PBC People’s Bank of China
PDA Provincial Department of Agriculture
PEI Pesticide Examination Institute
POE Privately-Owned EnterpriseRMB yuan Renminbi yuan, Chinese currency
SAEP State Administration of Environmental Protection
SAF State Administration of ForestSAG State Administration of Grain
SAIQ State Administration of Entry-Exit Inspection and Quarantine
SDPC State Development and Planning CommissionSMB State Meteorological Bureau
SMC Supply and Marketing Cooperatives
SSB State Statistical BureauTATEC Township-level Agrotechnical Extension Center
TVEs Township and Village Enterprises
VDSI Veterinary Drug Supervision Institute
Attachment DS1-2:  Official Exchange Rate
Exchange rate used in calculation of all subsidy-related information
Currency Unit = RMB Yuan
1998 US $ = 8.279 Yuan
1997 US $ = 8.289 Yuan
1996 US $ = 8.314 Yuan
Data Sources:
SSB, Statistical Yearbook of China 1999.WT/ACC/CHN/38/Rev.1
Page 20                                                                                                                                                                                                                                                                   
Notes:
14 In the 1996-1998 base period, Chinese government set up Agricultural Loan Programme to secure the availability of agricultural  loan as a support to agriculture.  The
programme was also called "special loan for agriculture", which targeted at agricultural development, agricultural infrastructu re construction and desert prevention and treatment.
However, the government provides neither preferential interest rate nor interest subsidy to loans under this program. Therefore , the state support here was only reflected in its
formulation of the programme to provide sp ecial credit loans available to agriculture.  Loans granted under the programme are s hown in the Attachment DS 2-1.  The loan
programme was implemented through ADBC in 1996-1997, and then in 1998, thro ugh ABC.
15 Interest Subsidy for Poverty Reduction Loans: As a support to poverty reduction, ADBC (1996-1997) and ABC (1998) provided loan s with preferential interests rate to
agricultural producers in poor areas (for the definition of poor areas, refer to the endnote 13 of Supporting Table DS 1).  The  gap between the nominal interest rate and the
preferential interest rate was subsidized by the budget allocation, calculation details see Attachment DS 2-2..
Attachment DS 2-1: Agricultural Loan Programme
Calendar year Nominal interest rate  1/ Value of out-standing loans
(%) (mil RMB yuan)
12 3 6
1996 10.08 5891
1997 8.64 11827 Loan for agricultural infrastructure
1998 6.39 12657
1996 10.08 16955
1997 8.64 24824Loan for agricultural development
1998 6.39 30439
1996 10.08 3135
1997 8.64 567Loan for desert prevention and
treatment
1998 6.39 633
Notes:
1/ Nominal interest rate: was equal to primary interest rate which was set up by the PBC. During 1996-1998, China didn’t have m arket interest rate.
Data Sources:
(1) ADBC: The Statistical Yearbook of ADBC,  1996, 1997, 1998.
(2) ABC: The Statistical Yearbook of ABC , 1997, 1998, 1999.WT/ACC/CHN/38/Rev.1
Page 21                                                                                                                                                                                                                                                                   
Attachment DS 2-2: Interest Subs idy for Poverty Reduction Loans
YearNominal
interest ratePreferential
interest rate
1/Interest rate
subsidyValue of
outstanding
preferential
loansValue of interest subsidy on
preferential loans
(%) (%) (%) (mil RMB yuan) (mil RMB yuan)
1 2 3 4 5 = 3 - 4 6 7 = 5 x 6
1996 10.08 2.88 7.2 17734 1276.8
1997 8.64 2.88 5.76 20162 1161.3
1998 6.39 2.88 3.51 23049 809.0Poverty reduction loanswith interest subsidy
Average 1082.4
1996 10.08 7.2 2.88 6627 190.9
1997 8.64 5.76 2.88 12966 373.4
1998 6.39 2.88 3.51 2018 70.8Poverty reduction loans
with preferential interestrate
Average 211.7
1996 1467.7
1997 1534.8
1998 879.9Total
Average 1294.1
Notes:
1/ Preferential interest rate on 1 year loans implemented by ADBC (1996-1997) and ABC (1998).
Data Sources:
(1) ADBC: The Statistical Yearbook of ADBC , 1996, 1997, 1998.
(2) ABC: The Statistical Yearbook of ABC , 1997, 1998, 1999.WT/ACC/CHN/38/Rev.1
Page 22                                                                                                                                                                                                                                                                   
16 Calculation details are shown in attachment DS 4-1.
Attachment DS4-1:  de minims adjustment
Description of basic production Calendar yearCalculated AMS before de minims
adjustment (from Supporting Tables
DS:5 to DS:7 below)Value of ProductionTotal AMS after de
minims adjustment  3/
mil RMB yuanAmount  1/
mil RMB yuan10 % of value  2/
mil RMB yuanmil RMB yuan
1996 -6075 179146 17915 0
1997 -11223 172877 17288 0
1998 -11223 146116 14612 0a) Wheat
average -9507 166046 16605 0
1996 -7785 91091 9109 0
1997 -9222 82248 8225 0
1998 -11014 87457 8746 0b) Japonica Rice
average -9340 86932 8693 0
1996 -9862 224099 22410 0
1997 -747 196176 19618 0
1998 -998 178453 17845 0c) Indica Rice
average -3869 199576 19958 0
1996 -5767 145902 14590 0
1997 2401 116139 11614 0
1998 6171 143028 14303 0d) Corn
average 935 135023 13502 0
1996 -5491 59509 5951 0
1997 -3261 64935 6493 0
1998 -6241 53455 5345 0e) Cotton
average -4997 59299 5930 0
1996 26559 2158016 215802 0
1997 24524 2294624 229462 0
1998 33242 2366541 236654 0Total Non-Product-Specific
AMS (from Supporting TableDS:9 below)Average 28108 2273060 227306 0WT/ACC/CHN/38/Rev.1
Page 23                                                                                                                                                                                                                                                                   
Notes:
1/  Value of Production:
(1) Value of production for specific product = production x producer price.  Calculation details are shown in Attachment DS 4-2 .
(2) Total value of agricultural production is reported by SSB, as shown in Attachment DS 4-3.
2/  Article 6:4(b).
3/  AMS is not subject to reduction or inclusion in the current AMS because the calculated AMS is less than 10 per cent of valu e of production (de minimis exclusion),
according to Article 6:4(b) and Article 7:2(b).
Attachment DS 4-2: Production Value of Specific Product
Production 1/ Producer Price 2/ Value of ProductionProducts Yearmillion tons RMB yuan/ton million RMB Yuan
1996 110.57 1620.20 179146
1997 123.29 1402.20 172877
1998 109.73 1331.60 146116Wheat
Average 166046
1996 35.40 2572.86 91091
1997 38.17 2154.57 82248
1998 40.87 2140.00 87457Japonica Rice
Average 86932
1996 101.17 2215.14 224099
1997 102.34 1916.86 196176
1998 98.23 1816.67 178453Indica Rice
Average 199576
1996 127.47 1144.60 145902
1997 104.31 1113.40 116139
1998 132.95 1075.80 143028Corn
Average 135023
1996 4.20 14158.60 59509
1997 4.60 14107.00 64935
1998 4.50 11876.20 53455Cotton
Average 59299WT/ACC/CHN/38/Rev.1
Page 24                                                                                                                                                                                                                                                                   
Notes:
1/ Data for production of wheat, corn, and cotton is reported in Statistical Yearbook of China  published by SSB, 1999.
Data for production of japonica rice, indica rice is reported in Agricultural Statistical Data published by MOA, 1999.
2/ Producer price is the average of market price and government administered price to specific products, which is calculated and  reported by SSB.
Data for producer price is reported in Rural Economic Statistical Yearbook of China  published by SSB, 1999.
Attachment DS 4-3:  Total Value of Agricultural Production
YearValue of Production
(million RMB yuan)
1996 2158016
1997 2294624
1998 2366541Total Value of
Agricultural Production  1/
Average 2273060
1996 1353975
1997 1385254
1998 1424188Production Value of
Crop Products
Average 1387806
1996 202044
1997 228269
1998 242288Production Value of
Aquatic Products
Average 224200
1996 601997
1997 681101
1998 700065Production Value of
Livestock Products
Average 661054
Notes:
1/ Total Value of Agricultural Production = Production Value of Crop Products + Production Value of Aquatic Products + Productio n Value of Livestock
Products.
Data Sources:
SSB,  Statistical Yearbook of China , 1999.WT/ACC/CHN/38/Rev.1
Page 25                                                                                                                                                                                                                                                                   
Notes:
17 Applied administered price--China's agricultural pricing policy in the 1996-1998 base period:
(1) State Procurement Pricing :
The government procures wheat, rice, corn and cotton from farmer s through state-owned grain enterprises at state procurement pr ice in order to safeguard food provision
security.
-- Terminology of State Procurement Pricing Policies:
(a) In 1985, the government reformed the purchase and marketing system of agricultural products and eliminated the policy of st ate monopoly for purchase and
marketing of agricultural products and began to implement contract purchase of agricultural products produced by farmers. There fore, in 1985-1990 period, the
term "state contract purchase price" was used.
(b) In 1990, the Chinese government replaced the term of "contract purchase" with "state procurement". However, at that time, " contract purchase price" was
still used in parallel with "state procurement price".
(c) Ever since 1996, the concept has been generally referred to as "state procurement price". And in the same year, the governm ent suspended the
implementation of state negotiated purchase price.
-- Products Coverage:
Before 1995, the state procurement pricing system involved many  agricultural products, including wheat, rice, corn, cotton, soy beans, rape seeds and sugar-
bearing crops etc. In the 1996-1998 base period, the products subject to the system only include wheat, rice, corn and cotton.
Data sources:
The data for State Procurement Price is reported in China's Agricultural Development Report published by MOA.
(2) Protective Price System:
In 1993, Chinese government set up the protective price policy, the purpose of which was to safeguard farmers' interest. Protec tive price came from farmers’ production
cost plus a certain amount of profit. In fact, implementation of the policy wasn't set off until 1997, when the government bega n to require the state-owned grain
enterprises to purchase farmers' grain at protective price.
-- Products Coverage:
In 1997-98, the products covered by the protective price policy were wheat, rice and corn.
Data sources:
The data for Protective Price are provided by SAG and SDPC.WT/ACC/CHN/38/Rev.1
Page 26                                                                                                                                                                                                                                                                   
18 External Reference Price:
(1) Wheat & Cotton : The two were net-import products in the 1996-1998 base period, therefore, their external reference prices were determined by their CIF prices, namely
based on China's Customs statistics, dividing the import values with the import volumes. See Attachment DS 5-1for calculation d etails.
(2) Corn, Japonica Rice and Indica Rice : The three were net-export products in the 1996-1998 base period, therefore, their external reference prices were determined b y
their FOB prices, namely based on China's Customs statistics, dividing the export values with the export volumes.  See Attachme nt DS 5-2 for calculation details.
19 Exchange Rate: see Attachment DS 1-2 at the Supporting Table DS 1.
20 Eligible Production:
(1) Eligible production for grain:
(a) Eligible Production for State Procurement Price refers to the procurement quota -- grain quantity procured by state-owned en terprises from farmers at state
procurement price in accordance with the government's grain procurement programme for the food security purpose (see the endnot e 9 in the Supporting
Table DS 1).
(b) Eligible Production for Protective Price refers to the grain quantity purchased by state-owned grain enterprises from farmer s at protective price in order to
protect farmer’s interest.
Data sources:
Eligible production for grain at state procurement pri ce and protective price are provided by SAG and SDPC.
(2) Eligible Production for cotton:
Eligible production cotton equals to its production. All cotton produced by farmers was usually procured by the state-owned cot ton enterprises at state procurement
price.
Data sources:
The data of cotton production is reported in Statistical Yearbook of China  published by SSB, 1997, 1998 and 1999.WT/ACC/CHN/38/Rev.1
Page 27                                                                                                                                                                                                                                                                   
Attachment DS 5-1:  CIF Prices for Wheat & Cotton
HS Code Calendar YearImport Volume
(tons)Import Value
(US $)CIF Price
(US $/ton)CIF Price  1/
(RMB Yuan/ton)
1996 4512381 1023059000 226.7 1885.0
1997 1508909 296653000 196.6 1629.6
1998 1275384 243373000 190.8 1579.810011000Wheat
Average of 1996-98
204.7 1698.1
1996 650000 1196670000 1841.0 15306.3
1997 750000 1330850000 1774.5 14708.6
1998 200000 331840000 1659.2 13736.552010000
Cotton
Average of 1996-98 1758.2 14583.8
Notes:
1/  Exchange Rate: see Attachment DS 1-2 at the Supporting Table DS 1.
Data sources:
General Administration of Customs,  Statistical Yearbook  of Chinese Customs, 1997, 1998 and 1999.WT/ACC/CHN/38/Rev.1
Page 28                                                                                                                                                                                                                                                                   
Attachment DS 5-2:  FOB Prices fo r Corn, Japonica Rice and Indica Rice
HS Code Calendar YearExport Volume
(tons)Export Value
(US $)FOB Price
(US $/ton)FOB Price  3/
(RMB Yuan/ton)
1996 157630.60 29982000 190.2 1581.4
1997 6616813 858779000 129.8 1075.8
1998 4686318 531643000 113.4 939.210059000Corn
Average of 1996-98
144.5 1198.8
1996 85933.49 38066000 443.0 3682.9
1997 184650.79 63758000 345.3 2862.1
1998 140340.03 56395000 401.9 3326.910063000
Japonica Rice  1/
Average of 1996-98 396.7 3290.6
1996 27479.28 10187000 370.7 3082.1
1997 569058.74 139571000 245.4 2033.0
1998 2761298.49 638352000 231.2 1913.910063000
Indica Rice  2/
Average of 1996-98 282.4 2343.0
Notes:
1/ In Attachment DS 5-2, Japonica rice expor ted as foreign assistance and border trade are not calculated.  The export of Japoni ca Rice in 1996 calculated here
refers to the export to Russia, Kazakhstan, Kirghistan, Korea, Libya, Mongolia and Japan, while that in 1997refers to those exp orted to Australia, Bulgaria, Russian,
Kazakhstan, Kirghistan, Canada, Libya, Romania, Mongolia, Japan, Turkey, Ukraine, Spain and Jordan, and in 1998, to Russia, Kaz akhstan, Korea, Kirghistan, Libya,
Mongolia, South Africa and Japan.
2/ In the table, Indica Rice exported as foreign assistance and border trade are not calculated. The export of Indica Rice in 1 996 calculated here refers to the export
to Macao, Mauritius, Hong Kong, Singapore, while that in 1997 re fers to those exported to UAE, Macao, Togo, Philippine, Cuba, G hana, Cote d'Ivoire, Kenya,
Mauritius, Hong Kong, Singapore, Indonesia, and in 1998, to UAE, Macao, Philippine, Mauritius, Hong Kong, Singapore and Indones ia.
3/ Exchange Rate: see Attachment DS 1-2 at the Supporting Table DS 1.
Data sources:
General Administration of Customs,  Statistical Yearbook  of Chinese  Customs, 1997, 1998 and 1999.WT/ACC/CHN/38/Rev.1
Page 29                                                                                                                                                                                                                                                                   
Notes:
21 Financial outlays to compensate the losses of State-owned agricultural input manufacturers resulted from selling their product s to farmers at the State administered price for the
purpose of reducing farmers’ production cost.  Only pesticide, fertilizer and plastic film were involved in the Input Subsidy P rogramme during 1996-1998.
Data sources:
MOF, Outlay Documents of the Ministry of Finance, 1997-1999.
__________