RESTRICTED WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOWT/ACC/CHN/38
14 September 2000
(00-3577)
Working Party on the
Accession of ChinaOriginal:  English/
anglais/
inglés
COMMUNICATION FROM CHINA
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 del'accession de la Chine
COMMUNICATION DE LA CHINE
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
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
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
yearMonetary 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) Research2State budget allocations. The payment is provided to agricultural scientificresearch institutes such as CAS, CAAS, PAAS, local agricultural institutes
3 for
general research and research relating to particular products, including
institutional cost on agriculture, expenditures on development of agricultural
varieties, on experiments and the three expenditures on agro-science and
technology4. Exempt under Annex 2, para 2. (a)average4058Budgetary
documents of
MOF
1996 1957
1997 2145
1998 2294 ii) Pest and
disease control5State budget allocations. The payment is provided to prevention and control
agencies, or inspection and quarantine agencies of plant and animal pest and
disease of MOA, SFA and local governments6, for them to conduct pest and
disease control measures such as early-warning, inspection, quarantine and
eradication, including general agriculture and specific crops, livestock, poultry,
aquatic products etc.  Exempt under Annex 2, para 2. (b)average2132Budgetary
documents of
MOF
1996 194
1997 211
1998 220 iii) Training7State budget allocations. The expenditure is provided to agricultural training
institutions of MOA, local governments8, to establish general and specialist
training facilities and conduct professional technology training to farmers,
administrative stuffs and technical personnel in agriculture.  Exempt under
Annex 2, para 2. (c)average208Budgetary
documents of
MOFWT/ACC/CHN/38
Page 3Measure type Name and description of measure with reference to criteria in Annex 2Calendar
yearMonetary value of
measure in year in
question
(Million RMB Yuan)Data
sources
12 3 4 5
1996 5635
1997 6111
1998 7008iv) Extension and
advisory services9State budget allocations. The expenditure is provided to extension and advisory
institutions of agricultural technology of MOA, SFA, SMB, MWR and local
governments10, to facilitate the transfer of information and the results of research
to producers.  Exempt under Annex 2, para 2. (d). average 6251Budgetary
documents of
MOF
1996 1016
1997 1436
1998 1500v) Inspection
services11State budget allocations. The expenditure is provided to inspection agencies ofagricultural products
12, for conducting inspection services including general
inspection services and the inspection of particular products for health, safety,
grading or standardization purposes. Exempt under Annex 2, para 2. (e). average 1318Budgetary
documentsof MOF
1996 0
1997 0
1998 0vi) Marketing an d
promotional
servicesState budget allocations.  Being unable to partition it from relevant items, it is
included under "viii) Other General Services" in this table.  Exempt under Annex
2, para 2. (f).average 0Budgetary
documents
of MOF
1996 40367
1997 44907
1998 60483 vii) Infrastructure
services13State budget allocations. The payment is targeted at infrastructure construction
such as flood control engineering, drainage and irrigation facilities, rural roads,
rural electricity reticulation and so on, as well as environmental programmessuch as rural afforestation, soil and water conservation etc. It excludes the
subsidized provision of on-farm facilities and subsidies to inputs or operating
costs, or preferential user charges.  Exempt under Annex 2, para 2. (g)average48586Budgetary
documents
of MOF
1996 13928
1997 15654
1998 18435viii) Othe r
general services14State budget allocations. The expenditure is to compensate operational cost ofagricultural administrative and service agencies such as MOA, SFA, SMB and
MWR
15, as well as to provide pensions to administrative and technical retirees of
agriculture.  Exempt under Annex 2, para 2. average 16006Budgetary
documents
of MOF
1996 28773
1997 35335
1998 51027b) Publicstockholding for food
security purposes
16State budget allocations. The products for public stockholding for food security
purposes are wheat, corn, rice, vegetable oils and sugar. The payment is provided
to compensate operation cost of stockholding for food security purposes in grainreserve agencies. Exempt under Annex 2, para 3. average 38378Budgetary
documents
of MOFWT/ACC/CHN/38
Page 4
Measure type Name and description of measure with reference to criteria in Annex 2Calendar
yearMonetary value of
measure in year in
question
(Million RMB Yuan)Data sources
12 3 4 5
1996 2012
1997 1875
1998 1766 c) Domestic food aidState budget allocations. The expenditure is to aid low-income urban and
township residents in forms of direct provision of food, or the provision of cash,
or subsidized price of food. The defined minimum income guarantee line of
urban and township residents demarcates the eligibility to receive the food aid.17
Exempt under Annex 2, para 4.average1884Budgetary
documents
of MOF
1996 0
1997 0
1998 0d) Decoupled income
supportNo expenditures
average 0
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
disasters18State budget allocations. The expenditure covers institutional cost of natural
disaster relief, rebuild compensation after extraordinarily serious disasters and
disaster relief expense in extraordinarily serious disasters, including resettlement
cost of disaster-stricken people, reconstruction charges of destroyed agricultural
facilities (such as drainage and irrigation facilities, rural roads etc.)19  Exempt
under Annex 2, para 8.average4429Budgetary
documents
of MOF
1996 0
1997 0
1998 0g) Structural
adjustment assistance
provided through
producer retirement
programmesNo expenditures
average0
1996 0
1997 0
1998 0h) Structural
adjustment assistance
provided throughresource retirement
programmesNo expenditures
average0WT/ACC/CHN/38
Page 5Measure type Name and description of measure with reference to criteria in Annex 2Calendar
yearMonetary value of
measure in year in
question
(Million RMB Yuan)Data sources
12 3 4 5
1996 0
1997 0
1998 0i) Structural
adjustment
assistance provided
through investment
aidsNo expenditures
average0
1996 4954
1997 5460
1998 5620j) Environmental
programmesState budget allocations. The payment is provided to environmental protection
agencies and administrative agencies of forestry such as SEPA, SFA and local
governments' agencies20, covering the payments in agricultural environment
protection, afforestation, desert control and prevention, water resources protection
and water and soil conservation etc.  Exempt under Annex 2, para 12average5345Budgetary
documentsof MOF
1996 6000
1997 10000
1998 11000k) Regional
assistance
programmesState budget allocations.  The payment is to compensate agricultural development
cost in poor areas, such as hilly areas, remote areas and minority regions featuring
uneasy traffic and disadvantaged natural conditions21. The payments also serve
specific agricultural development programmes of Northwest China's Dingxi Region
(in Gansu Province) and Hexi Region (in Ningxia Autonomous Region). The
expenditure will cover agricultural infrastructure construction and construction of
rural water provision system, roads and electricity reticulation22  Exempt under
Annex 2, para 13.average9000Budgetary
documents
of MOF
1996 112178
1997 131254
1998 210815Total
average 151416WT/ACC/CHN/38
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 subsidiesgenerally available to
agricultureAgricultural Loan Programme.
23:  Exempt from Article 6:2 of AOA
average 0See notes
1996 1467.7
1997 1534.8
1998 879.92) Input subsidies generally
available to low-income orresource poor producersInterest Subsidy for Poverty Reduction Loans with Preferential
Interest Rate.
24  Calculation details see Attachment DS 2-2.   Exempt
from Article 6:2 of AOA
average 1294.1See notes
3) domestic support to
producers to encourage
diversification from growing
illicit narcotic cropsNo expendituresWT/ACC/CHN/38
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
NOTE:  NO SUCH PROGRAMMES IN CHINAWT/ACC/CHN/38
Page 8 Supporting 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
productionCalendar YearProduct-specific AMS (from
Supporting Tables DS:5 to
DS:7 below)
(Million RMB Yuan)Product-specific Measurements
of Support (from Supporting
Tables DS:8 below)
 (Million RMB Yuan)Current Total AMS
(aggregate)
(Million RMB Yuan)Comments
12 3 4 5 6
1996 -6074.6 -6074.6 de minimis
1997 -11223.4 -11223.4 de minimis
1998 -11223.4 -11223.4 de minimisa) Wheat
average -9507.1 -9507.1 de minimis
1996 -7785.0 -7785.0 de minimis
1997 -9222.4 -9222.4 de minimis
1998 -11013.5 -11013.5 de minimisb) Japonica Rice
average -9340.3 -9340.3 de minimis
1996 -9862.4 -9862.4 de minimis
1997 -747.3 -747.3 de minimis
1998 -998.2 -998.2 de minimisc) Indica Rice
average -3869.3 -3869.3 de minimis
1996 -5767.0 -5767.0 de minimis
1997 2401.3 2401.3 de minimis
1998 6171.1 6171.1 de minimisd) Corn
average 935.2 935.2 de minimisWT/ACC/CHN/38
Page 9Description of basic
productionCalendar YearProduct-specific AMS (from
Supporting Tables DS:5 to
DS:7 below)
(Million RMB Yuan)Product-specific Measurements
of Support (from Supporting
Tables DS:8 below)
 (Million RMB Yuan)Current Total AMS
(aggregate)
(Million RMB Yuan)Comments25
12 3 4 5
1996 -5554.3 -5554.3 de minimis
1997 -3485.4 -3485.4 de minimis
1998 -7929.6 -7929.6 de minimise) Cotton
average -5656.4 -5656.4 de minimis
1996 26559.0 de minimis
1997 24524.0 de minimis
1998 33242.0 de minimisTotal Non-Product-
Specific AMS (from
Supporting Table
DS:9 below) Average 28108.3 de minimis
1996 0.0 de minimis
1997 0.0 de minimis
1998 0.0 de minimisTotal AMS26
average 0.0 de minimisWT/ACC/CHN/38
Page 10 Supporting 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
price27
(RMB Yuan/ton)External reference
price 28&29
(RMB Yuan/ton)Eligible
production30
('000 tons)Associated fees /
levies
(Million RMB
Yuan)Total market price
support
 (Million RMB
Yuan)Data sources
12 3 4 5 6 7 8 9
1996 State Procurement Pricing 1480.0 1885.0 15000.0 -6075
State Procurement Pricing 1480.0 1629.6 15000.0 -22441997Protective Price System 1340.0 1629.6 31002.0 -8979
State Procurement Pricing 1420.0 1579.8 15000.0 -23971998Protective Price System 1260.0 1579.8 12956.0 -4144a)Wheat
averageSee notes
1996 State Procurement Pricing 2200.0 3682.9 5250.0 -7785
State Procurement Pricing 2200.0 2862.1 5250.0 -34761997Protective Price System 1971.4 2862.1 6451.7 -5746
State Procurement Pricing 2114.3 3326.9 5250.0 -63661998Protective Price System 1914.3 3326.9 3290.0 -4647b)Japonica
Rice
averageSee notes
1996 State Procurement Pricing 2142.9 3082.1 10500.0 -9862
State Procurement Pricing 2142.9 2033.0 10500.0 11531997Protective Price System 1885.7 2033.0 12903.3 -1901
State Procurement Pricing 1931.4 1913.9 10500.0 1841998Protective Price System 1734.3 1913.9 6580.0 -1182c)Indica Rice
averageSee notesWT/ACC/CHN/38
Page 11Description
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
 (Million RMB
Yuan)Total market price
support
(Million RMB
Yuan)Data sources
12 3 4 5 6 7 8 9
1996 State Procurement Pricing 1120.0 1581.4 12500.0 -5767
State Procurement Pricing 1240.0 1075.8 12500.0 20521997Protective Price System 1100.0 1075.8 14421.5 349
State Procurement Pricing 1180.0 939.2 12500.0 30101998Protective Price System 1060.0 939.2 26174.0 3161d)Corn
averageSee notes
1996 State Procurement Pricing 14000.0 15321.4 4203.3 -5554
1997 State Procurement Pricing 14000.0 14757.3 4602.7 -3485
1998 State Procurement Pricing 12350.0 14111.7 4501.0 -7930e)Cotton
averageSee notesWT/ACC/CHN/38
Page 12Supporting 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
administere
d price
(RMB/ton)External
reference
price
(RMB/to
n)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
1 2 3 456 7 8 9 1 0 1 1
NOTE:  NO SUCH PROGRAMMES IN CHINAWT/ACC/CHN/38
Page 13Supporting 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)
(Million RMB Yuan)Associated
fees /
leviesTotal other
product-
specific
support
(Million
RMB Yuan)Market price
support
(Supporting
Table DS:5)
(Million RMB
Yuan)Non-exempt
direct
payments
(Supporting
Table DS:6)Total AMS
(Million
RMB Yuan)Data
sources
1 2 3 4 5 6 7=(4+5-6) 8 9 10=(7+8+9) 11
1996 -6074.6 -6074.6
1997 -11223.4 -11223.4
1998 -6541.1 -6541.1a) Wheat
average -7946.3 -7946.3
1996 -7785.0 -7785.0
1997 -9222.4 -9222.4
1998 -11013.5 -11013.5b) Japonica Rice
average -9340.3 -9340.3
1996 -9862.4 -9862.4
1997 -747.3 -747.3
1998 -998.2 -998.2c) Indica Rice
average -3869.3 -3869.3WT/ACC/CHN/38
Page 14 Description of
basic productCalendar
yearMeasurement
type(s)Other product-
specific
budgetary
outlaysOther product
specific support
(include calculation
details)
(Million RMB Yuan)Associated
fees /
leviesTotal other
product-
specific
support
(Million
RMB Yuan)Market price
support
(Supporting
Table DS:5)
(Million RMB
Yuan)Non-exempt
direct
payments
(Supporting
Table DS:6)Total AMS
(Million
RMB Yuan)Data
sources
1 2 3 4 5 6 7=(4+5-6) 8 9 10=(7+8+9) 11
d) Corn 1996 -5767.0 -5767.0
1997 2401.3 2401.3
1998 6171.1 6171.1
average 935.2 935.2
e) Cotton 1996 -5554.3 -5554.3
1997 -3485.4 -3485.4
1998 -7929.6 -7929.6
average -5656.4 -5656.4WT/ACC/CHN/38
Page 15Supporting 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
of 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
NOTE:  NO SUCH PROGRAMMES IN CHINAWT/ACC/CHN/38
Page 16Supporting 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
outlays
(Million RMB
Yuan)Other non-product-
specific support
(include calculated
details)
(Million RMB Yuan)Associated fees/levies
(Million RMB Yuan)Total non-product-specific
support
(Million RMB Yuan)Data sources
1 2 3 4 5 6=3+4-5 7
1996 26559 26559
1997 24524 24524
1998 33242 33242a) Input subsidies31
average 28108 28108Budgetary
documents of the
Ministry of
Finance
1996 26559
1997 24524
1998 33242Total
average 28108WT/ACC/CHN/38
Page 17Supporting Table ES:  1
DOMESTIC SUPPORT: People's Republic of China
REPORTING PERIOD: 1996-1998
Export Subsidies:  Outlay and Quantity
NO SUCH PROGRAMMES IN CHINA
                                                     
1 The data in the table come from budgetary documents of the Ministry of Finance. The payment includes both the expenditures of the Central Government and
that of local governments.  China will release all the information on agricultural financial expenditures of the government in publications in the future.
2 Research: the institutional operating cost on agricultural research, cost on development of agricultural varieties and cost on  experiments were not included in
Supporting Table DS1 of WT/ACC/CHN/9 of July 1997.
3 All abbreviations in the Supporting Tables are listed in the At tachment DS1-1 for definition of abbreviations.  Agricultural r esearch institutes like CAAS, PAAS
and Local agricultural institutes are public agricultural agencies set up by governments at different levels. Their major missi on is to engage in agro-scientific
research, such as research on improved varieties, plant protection, dry farming and water-saving irrigation etc.  The fund need ed by the above-mentioned
institutes is provided by both the expenditures of the central government and that of local governments.
4 The three expenditures on agro-science and technology:  a budgetary item for agro-science and technology in State budget alloc ations, expenditures on new
varieties research, intermediate experiment and key subject research.
5 The expenditure for pest and disease control was included in "Expenditures on Agricultural Production and Administration" of " General Services" in Supporting
Table DS1 of WT/ACC/CHN/9.
6 Agencies for pest and disease control of plants and animals are public institutions established under the supports of the cent ral and local governments.  NATEC
under MOA equipped with plant pest and disease inspection division, prevention and treatment division, medical equipments divis ion and plant quarantine
division.  NATEC is responsible for the nation-wide pest and dis ease control of plants.  Under MOA, there is also National Husb andry and Veterinary Station,
which is responsible for nation-wide inspection and prevention of animal diseases.  Plant protection stations and husbandry and  veterinary stations are also
established at various levels from provincial to township's, whic h take charge of the prevention work of plant and animal disea ses in their respective regions.  The
payments are from financial expenditures of different levels.
7 The expenditure for training was included in "Expenditures on Agricultural Production and Administration" of "General Services " in Supporting Table DS1 of
WT/ACC/CHN/9.
8 Agricultural training institutions are established by governments at different levels, including International Exchange Servic e Center of MOA, Central
Broadcast and TV School for Agriculture and Agricultural Training Co lleges / Center.  They provide training to agricultural adm inistrative personnel in
agriculture as well as technical and management training to farmers.  Local Agricultural authorities also set up their own agri cultural training centers.  Payments
to afford personnel, institutions, teaching materials and programme design of these training institutions are from government's  budget allocation at various levels.
9 The expenditure for extension and advisory services was included in "Expenditures on Agricultural Production and Administratio n" of "General Services" in
Supporting Table DS1 of WT/ACC/CHN/9.WT/ACC/CHN/38
Page 18                                                                                                                                                                                                                                                                   
10 Extension and advisory institutions of agricultural technology are public institutions established y governments of different levels, such as NATEC under
MOA, National NATES, NAMTDES  and those alike at local levels (such as PATEC, MATCE, CATEC, TATEC and various levels ATES, AMTDES  etc.). These
institutions are indulged in extension and advisory services to agricultural producers and are funded by the budget allocation at various levels.
11 The expenditure for inspection services was included in "Expend itures on Agricultural Production and Administration" of "Gener al Services" in Supporting
Table DS1 of WT/ACC/CHN/9.
12 Inspection and quarantine agencies of agricultural products, such  as SAIQ who is responsible fo r inspection and quarantine of imported and exported animals
and plants. Under MOA, there are Pesticide Examination Institute, Veterinary Drug Supervision Institute and Animal Quarantine I nstitute, which are responsible
for monitoring and supervision of pesticide residue, veterinary drug residue and animal disease.  Expenses of these institution s are covered by expenditures of
governments at different levels.
13 The expenditures for infrastructure services on flood control en gineering, rural roads and rural electricity reticulation were  not included in Supporting Table
DS1 of WT/ACC/CHN/9.
14 Other general services: the expenditure was included in "Expenditures on Agricultural Production and Administration" of "Gener al Services" in Supporting
Table DS1 of WT/ACC/CHN/9.
15 Expenditures for other general services also include the foll owing non-profit institutions operation cost, such as the Adminis tration Station of Rural
Cooperative Economy of MOA which is in charge of monitoring farmer s' income, TVEs Development Center of MOA which is in charge of providing services
to TVEs for their development, the Fishing and Fish Harbor Admi nistrations in South Sea, East Sea and Yellow and Bo Sea of MOA which is in charge of fishing
and fishing off administration, the Agricultural Information Center  of MOA, which is in charge of providing products and market  information to farmers; the
Agriculture Fair Office, which is in charge of holding agricultural fairs.  Expenditures of those institutions also cover the r etirement payment for agricultural
administrative staff and technicians.
16 In order to safeguard food security, Chinese government set up Buffer Reserve System to major foodstuff products that have a b earing on the national economy
and people's livelihood, such as wheat, rice, corn, vegetable oil and sugar.  In 1986-1998 base period, the buffer reserve of g rain for food security purposes was
conducted mostly 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).  Provincial, county an d township-level state-owned
grain enterprises designated by the state purchased wheat, rice and corn within government procurement quota at the government procurement price, and then
turn their procurement to state-owned grain reserve enterprises for holding.  When grain provision safety was threatened becaus e of natural disasters or reduction
of grain production, the designated state-owned grain enterprises so ld reserved grain in the market at market price.  The state  covered all the operations cost
happened in storing and purchasing the grain reserve programme, including the cost of state-owned grain enterprises and state-o wned grain reserve enterprises,
such as shipping cost, loan interest and operational expenses.  For the grain reserve quantity, i.e., grain procurement quota a nd price of the buffer reserve, see the
AMS calculation of Wheat, Rice and Corn Supporting in Table DS:5.  In Annex 2 of AOA, Note 5 enshrines that developing countrie s can have administered
price while implementing grain security reserve programme for the purpose of food security.  Base on the Note 5 of Annex 2 of A OA, in Supporting Table 5,
administered prices implemented to wheat, rice and corn in food  security reserve programme have been counted in calculation of the AMS.  (2) Vegetable oil and
Sugar :  the state purchase vegetable oil and sugar from the market at market price through commercial companies, and then turn them to commercial reserve
enterprises for holding, thus establish the buffer reserve of vegetable oil and sugar.  At the time of force majeure, natural d isaster, when food security of residence
is threatened and base nutrition level decreasing, the state will sell the vegetable oil and sugar to the market at the market price. Inherent cost for reserve and loan
interest payments etc will be covered by the state expenditure.
17 From 1996 to 1998, Chinese authorities at all levels applied a minimum income safeguard system to low-income population.  The purpose is to provide food
assistance to low-income population.  The assistance standard in 1996 and 1997 was population with "without working ability and  no income source".  AfterWT/ACC/CHN/38
Page 19                                                                                                                                                                                                                                                                   
1998, the minimum income standard was set and population whose income is lower than that standard is eligible to obtain food as sistance.  Money was
transferred to the assisted population in some places and food and edible oil was transferred in other places, which calculated  or purchased at market price.
18 Payments for relief from natural disasters: eligibility to such a payment for Chinese farmers is decided by a production loss which exceeds 70% of the average
of production in the preceding three-year period, or local public opinions which should generally regard the farmer in question  as moneyless, grainless and
labourless.
19 MCA is responsible for implementation of natural disaster relief.  The fund is allocated by MOF and the beneficiary is disaste r-stricken people. The
government makes estimation on the disaster degree of certain locality based on statistics provided by various agencies, such a s
MCASMBMOA/PDA MWRSSB and on its field survey and verification in disaster area with the working group composed of people fro m relevant the
government agencies.
20 EPA and FA have been established both at central level and local level. They are responsible for development plan of environme nt and forestry, monitoring
and supervision of environment and woods resources, as well as projects' design and financial appropriation. For example, in 19 98, China expanded its input in
the construction of bio-environment and implemented the project of natural forestry protection. The plan, project selection and  financial appropriation were done
by SFA.  The fund was provided by various level financial department.
21 Regional assistance programmes: in the 1996-98 base period, China had 592 poor counties recognized by the state, where the per  capita net-income of the
farmers was less than RMB 400 yuan (1990's price) and per capita daily calorie was less than 2100 kilocalorie. These state-grad ed poor counties locate in 26
provinces and autonomous regions. Among them, 73 are in poor regions  of Yunnan province, such as the South Yunnan mountainous a rea, outreach of Hengduan
Mountain and Wumeng mountain; 50 in Qin-Ba  mountain region and stone mountain region al ong the Huanghe River of Shannxi provinc e; 48 in Jiuwanda and
Wumeng mountainous region of Guizhou province; 43 in Wumeng and Qin- Ba mountainous region of Sichuan province; 39 in Taihang, Y anshan and Highland
desert areas of Hebei province; 35 in Highland desert area of Shanxi province; 28 in remote mountain area, dry and hilly region  and low and floody area of Henan
Province; 28 in lava area of Guangxi Province; 25 in the southern  dry area of Xinjiang Autonom ous Region; 25 in Dabie and Qin-B a mountainous regions of
Hubei Province; 18 in Jingang and Southern Gan Mountain areas of Jiangxi Province; 17 in the highland pastry area and dry area of Qinghai Province; 10 in the
mountain area of Hunan Province where Sichuan, Guizhou and Guangxi converging with the province; 10 in the Yimeng mountain regi on of Shandong Province;
5 in the high and cold mountain area of Tibet. Top of that, th ere are 11 in Heilongjiang Province; 9 in Liaoning; 8 in Ningxia;  8 in Fujian; 5 in Hainan. All in all,
poverty prevails mostly in mountainous areas where conditions are severe for agricultural production.
22 Financial expenditure for poverty reduction mostly flows to th e following projects: small-scale reservoirs, farmland facilitie s, drinking projects, forestation,
pastry construction, road and bridge construction, rural hydro-power station, electricity transmission line, rural market and s chools construction etc. All the
payments are for the construction of agricultural and rural infrastructure.  Development plan and poverty reduction projects ar e decided by respective provincial
governments, the same with the total investment, self -raised fund and financial support needed from the upper level government .  Then, the central government
will settle the financial assistance scale of each province.  The fund will be allocated to the project undertaking units by lo cal financial departments.
Attachment DS1-1: The Defi nition of Abbreviations:
ABC Agricultural Bank of China
ADBC Agricultural Development Bank of China
AIC Agricultural Input CorporationAMTDES Agricultural Mechanization Technology Development and Extension StationWT/ACC/CHN/38
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ATES Aquatic Technology Extension Station
CAAS Chinese Academy of Agricultural SciencesCAS Chinese Academy of Agricultural Sciences
CATEC County-level Agro technical Extension Center
EPA Provincial or county level Environmental Protection AdministrationFA Provincial or county level Forest Administration
FD Provincial or county level Financial Department
ICBC Industrial and Commercial Bank of ChinaMATEC Municipal/Prefectural-level Agrotechnical Extension Center
MCA Ministry of Civil Affairs
MOA Ministry of AgricultureMOF Ministry of Finance
MFTEC Ministry of Foreign Trade and Economic Cooperation
MOST Ministry of Sciences and TechnologyMWR Ministry of Water Resources
NATEC National-level Agrotechnical Extension Center
NAMTDES National Agricultural Mechanization Technology Development and Extension StationNATES National-level Aquatic Technology Extension Station
PAAS Provincials Academy of Agricultural Sciences
PADO Poor Area Development OfficePATEC Provincial-level Agrotechnical Extension Center
PBC People's Bank of China
PDA Provincial Department of AgriculturePOE Privately-Owned Enterprise
PRS Household Production Responsibility System
RMB yuan Renminbi yuan, Chinese currencySDPC State Planning and Development Commission
SEPA State Environmental Protection Administration
SFA State Forest AdministrationWT/ACC/CHN/38
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SGA State Grain Administration
SAIQ State Administration of Entry-Exit Inspection and QuarantineSMB State Meteorological Bureau
SMC Supply and Marketing Cooperatives
SOE State-Owned EnterpriseSSB State Statistical Bureau
TATEC Township-level Agrotechnical Extension Center
TVEs Township and Village Enterprises
Attachment DS1-2: O fficial Exchange Rate
Exchange rate used in calculation of all subsidy related information
Currency Unit = RMB Yuan
Effective December 16, 1998 US $ = 8.279 Yuan
Up to December 15, 1998 US $ = 8.279 Yuan
Up to December 31, 1997 US $ = 8.289 Yuan
Up to December 31, 1996 US $ = 8.314 Yuan
Data source: SSB, 1999: Statistical Yearbook of China.
23 Agricultural Loan ProgrammeIn the 1996-1998 base period, agricultur al loan programme of the government is projected to provid e stable credit fund to
agricultural producers.  The programme is also called "special  loan for agriculture", which targeted at agricultural developmen t, agricultural infrastructure
construction and desert prevention and treatment.  However, the government provides no preferential interest rate to loans unde r this programme, no words of
loan interest subsidy.  Due to credit fund limited that time, Go vernment support here is only reflected in its formulation of t he plan to issue special credit loans to
agriculture, compared with other industries.  The issuance of su ch loan is shown in the Attachment DS 2-1.  In 1996-1997, the l oan plan was implemented
through ADBC and then in 1998, through ABC.
24 Interest Subsidy for Poverty Reduction Loans with Preferential Interest Rate: The government regulates that as a support to po verty reduction, ADBC (1996-
1997) and ABC (1998) could provide loans with preferential interests rate to agricultural producers in poor areas (for the defi nition of poor areas, see the Endnote
21 of Supporting Table DS 1). In the 1996-1997 base period, the loan was provided by ADBC; and in 1998, it was provided by ABC.  The gap between the
nominal interest rate and the preferential interest rate was subsidized by the state budget allocation.WT/ACC/CHN/38
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Attachment DS 2-1: Agricultural Loan Programme
Year Nominal interest rate  1/ Value of loans 2/
(%) (mil RMB yuan)
12 3 6
1996 10.08 5891
1997 8.64 11827Agricultural Infrastructure
Construction Loan
1998 6.39 12657
1996 10.08 16955
1997 8.64 24824Agricultural Development Loan
1998 6.39 30439
1996 10.08 3135
1997 8.64 567 Desert prevention and treatment
1998 6.39 633
Notes:
1/ Nominal interest rate (or called base interest rate) on 1 year loans by People Bank of China, applied for Agricultural Loan Programme.
2/ Value of loans for agricultural development, agricultural infrastructure construction and Desert prevention and treatment.
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
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Attachment DS 2-2: Interest Subsidy for Poverty Reduction Loans with Preferential Interest Rate
Year Nominal
interest rate 1/Preferential
interest rate
2/Interest
rate
subsidyValue of exempt
Preferential loans
3/Value of initial
interest subsidy on
exempt Preferential
loansAverage time
loan is out-
standingTotal value of
interest subsidy on
exempt
Preferential loans
(%) (%) (%) (mil RMB yuan) (mil RMB yuan) (Years) (mil RMB yuan)
1 2 3 4 5=2-4 6 7=5*6 8 9=7*8
1996 10.08 2.88 7.2 17734 1276.8 1 1276.8
1997 8.64 2.88 5.76 20162 1161.3 1 1161.3
1998 6.39 2.88 3.51 23049 809.0 1 809.0Poverty reduction loans withinterest subsidy
Average 1082.4 1082.4
1996 10.08 7.2 2.88 6627 190.9 1 190.9
1997 8.64 5.76 2.88 12966 373.4 1 373.4
1998 6.39 2.88 3.51 2018 70.8 1 70.8Poverty reduction loans with
preferential interest rate
Average 211.7 211.7
Total 1996 1467.7 1467.7
1997 1534.8 1534.8
1998 879.9 879.9
Average 1294.1 1294.1
Notes:
1/ Nominal interest rate (or called base interest rate ) on 1 year loans by People's Bank of China.
2/ Preferential interest rate on 1 y ear loans by ADBC (1996-1997) and ABC (1998).
3/ Value of loans for poverty reduction..
Sources: (1)ADBC: The Statistical Yearbook of ADBC , 1996, 1997, 1998.
(2)ABC: The Statistical Yearbook of ABC , 1997, 1998, and 1999.
25 De minims exclusion based on the Attachment DS 4-1.
26 Total AMS: exempt from Article 6:2 (b) of AOA.WT/ACC/CHN/38
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Attachment DS4-1:  de minims exclusion
Description of basic
productionCalendar YearAMS before de minims
adjustment
(Million RMB Yuan)Value of Production 1/AMS as a percentage of value
of production
1996 -6074.6 179145.5 -3.4
1997 -11223.4 172877.2 -6.5
1998 -11223.4 146116.5 -7.7a) Wheat
average -9507.1 166046.4 -5.7
1996 -7785.0 91091.0 -8.5
1997 -9222.4 82247.7 -11.2
1998 -11013.5 87456.7 -12.6b) Japonica Rice
average -9340.3 86931.8 -10.7
1996 -9862.4 224098.9 -4.4
1997 -747.3 196175.9 -0.4
1998 -998.2 178453.1 -0.6c) Indica Rice
average -3869.3 199576.0 -1.9
1996 -5767.0 145902.2 -4.0
1997 2401.3 116138.8 2.1
1998 6171.1 143027.6 4.3d) Corn
average 935.2 135022.8 0.7
1996 -5554.3 59508.6 -9.3
1997 -3485.4 64934.5 -5.4
1998 -7929.6 53454.8 -14.8e) Cotton
average -5656.4 59299.3 -9.5
1996 26559.0 1955972 1.4
1997 24524.0 2066355 1.2
1998 33242.0 2124253 1.6Total Non-Product-
Specific AMS (from
Supporting Table
DS:9 below) Average 28108.3 2048860 1.4
1996 1378.1
1997 2994.1
1998 9246.6Total AMS  2/
average 4539.6
Notes:
1/  Value of Production:
(1) Value of production for product-specific: calculation from production multiplying producer price, calculation details as th e Attachment DS 4-2.WT/ACC/CHN/38
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(2) Value of production for agriculture in Non-Product-Specific AMS Row: the data is from the Statistical Yearbook of China iss ued by SSB, 1999, which is
based on the 1990's price, see Attachment DS 4-3.
2/  Total AMS not using de minims, equals to Tota l Product-Specific AMS plus Total Non-Product-Specific AMS.
Attachment DS 4-2: Value of production for product-specific
Production 1/ Producer Price 2/ Production ValueProducts 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 87457Japonic 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 59299
Notes:
1/  Data for production of wheat, corn, and cotton is published in the Statistical Yearbook of China  issued by SSB, 1999.
     Data for production of japonica rice, indica rice is published in the Agricultural Statistical Data issued by MOA, 1999.
2/  Data for producer price of agricultural products is published in theRural Economic Statistical Yearbook of China  issued by SSB, 1999..WT/ACC/CHN/38
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Attachment DS 4-3:  Total Agricultural Production Value
YearValue of Production
(Million RMB Yuan)
1996 1955972
1997 2066355
1998 2124253Total AgriculturalProduction Value  1/
Average 2048860
1996 1353975
1997 1385254
1998 1424188Production Value of
Crop Products
Average 1387806
1996 601997
1997 681101
1998 700065Production Value of
Livestock Products
Average 661054
Notes:
1/  Total Agricultural Production Value = Production Valu e of Crop Products + Production Value of Livestock Products.
Data Source:  SSB,  Statistical Yearbook of China , 1999
27 Applied administered price--China's agricultu ral price policy in the 1996-1998 base period:
(1) State Procurement Pricing:  It means the government procures major agricultural products like grain (wheat, rice and corn) and cotton from farmers through
state-owned grain enterprises under state procurement price in order to safeguard food security provision.
--Evolution of the Terminology:
(a) In 1985, the government reformed the purchase and marketing syst em of agricultural products by dropping the policy of unifi ed purchase and marketing and
the state monopoly operating system of agricultural products and be gan to implement contract purchase of agricultural product p roduced by farmers. Therefore,
in 1985-1990 period, the term "state contract purchase price" was used.
(b) In 1990, the Chinese government decided to replace "contract pur chase" in the term with "state  procurement". However, at th at time, "contract purchase price"
was still used in parallel with "state procurement price".
(c) Ever since 1996, the expression has been generally referred to as "state procurement price". And in the same year, the gove rnment suspended the
implementation of state negotiated purchase price policy.
--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, c orn and cotton.
--Data Sources: The data for State Procurement Price provided in 1996-1998 Supporting Table DS:5 originates in China's Agricultural Development Report
issued MOA.WT/ACC/CHN/38
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(2) Protective Price System: In 1993, Chinese government formed the protective price policy, the purpose of which was to safegu ard farmers' interest. Protective
price is determined by farmers' grain production cost added by  a certain amount of profit. In fact, implementation of the polic y wasn't set off until 1997, when the
government began to require the state-owned grain enterprises to purchase farmers' grain under protective price.--Products Coverage: In 1997-98, the products covered by the protective price were wheat, rice and corn.
--Data Sources : The data for Protective Price in Supporting Table DS: 5 were provided by the State Grain Administration (SGA) and the State D evelopment and
Planning Commission (SDPC).
28 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 by the import volumes, Calculation details as At tachment DS 5-1.
(2) Corn, Japonica Rice and Indica Rice : The two were net export products in the 1996-98 base period, therefore, their external reference prices were determined
by their FOB prices, namely based on China's Customs statistic yearbook , dividing the export values by the export volumes.  Calculation details as
Attachment DS 5-2.
Attachment DS 5-1:  CIF Prices for Wheat & Cotton
HS Code YearImport Volume
(tons)Import Value
(US $)CIF Price
(US $/ton)CIF Price
(RMB Yuan/ton)
1996 4,512,381 1,023,059,000 226.7 1885.0
1997 1,508,909 296,653,000 196.6 1629.610011000Wheat
1998 1,275,384 243,373,000
190.8 1579.8
1996 650,000 1,196,670,000 1841.0 15306.3
1997 750,000 1,330,850,000 1774.5 14708.652010000
Cotton
1998 200,000 331,840,000 1659.2 13736.5WT/ACC/CHN/38
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Attachment DS 5-2:  FOB Prices for Corn, Japonica Rice and Indica Rice
HS Code YearExport Volume
(tons)Export Value
(US $)FOB Price
(US $/ton)FOB Price  3/
(RMB Yuan/ton)
1996 157,630.60 29,982,000 190.2 1581.4
1997 6,616,813 858,779,000 129.8 1075.810059000
Corn
1998 4,686,318 531,643,000 113.4 939.2
1996 85,933.49 38,066,000 442.97 3682.9
1997 184650.79 63758000 345.29 2862.110063000
Japonica Rice  1/
1998 140340.03 56395000 401.85 3326.9
1996 27479.28 10187000 370.72 3082.1
1997 569058.74 139571000 245.27 2033.010063000
Indica Rice  2/
1998 2761298.49 638352000 231.18 1913.9
Notes:
1/ In Attachment DS 5-2, the export of Japonica doesn't include gr ain assistance and border trade. Japonica is exported to Russi a, Kazakhstan,
Kirghistan, Korea, Libya, Mongolia and Japan. In 1997, it was exported to Australia, Bulgaria, Russian, Kazakhstan, Kirghistan,  Canada, Libya, Romania,
Mongolia, Japan, Turkey, Ukraine, Spain and Jordan. In 1998, it was exported to Russia, Kazakhstan, Korea, Kirghistan, Libya, M ongolia, South Africa and
Japan.
2/ In the table, the export of Indica doesn't include grain assi stance and border trade. In 1996, the export of Indica is toward s Macao, Mauritius,
Hongkong, Singapore. In 1997, it went to UAE, Macao, Togo, Philippine, Cuba, Ghana, Corde Vior, Kenya, Mauritius, Hongkong , Singapore,
Indonesia. In 1998, it went to UAE, Macao, Philippine , Mauritius, Hongkong, Singapore and Indonesia.-
3/ Exchange Rate: see Attachment DS 1-2 at the Supporting Table DS 1.
--Data Sources : Customs' Statistical Yearbook  published by General Administration of Customs in 1997, 1998 and 1999.
29 Exchange Rate: see Attachment DS 1-2 at the Supporting Table DS 1.
30 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 e nterprises from farmers under
state procurement price in accordance with the government's grain procurement programme for the food security purpose (see the endnote 16 in the Supporting
Table DS 1).
(b) Eligible Production for Protective Price refers to the grain quantity purchased by state-owned grain enterprises from farme rs under protective price in
accordance with relevant regulations of government policies for protecting farmer's interest.
--Data Sources: E ligible production for state procurement price and protective price were provided by the State Grain Administration and the Sta te Development
and Planning Commission.WT/ACC/CHN/38
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(2) Eligible Production for State Procurement Price of Cotton:  Eligible Production for State Procurement of Cotton equals to i ts production. All cotton produced
by farmers was usually procured by the state-owned cotton enterprises under state procurement price.
-- Data Sources: The data of cotton production originate from SSB:  Statistical Yearbook of China , 1997, 1998 and 1999.
31 Input subsidies:   In order to protect farmers' interest and to reduce production cost of agricultural products, the government implements low pr ice policy to
agricultural inputs bought by farmers, such as pesticide, ferti lizer and plastic film (the price is stipulated by the governmen t). The incurred policy losses to
manufacturing enterprises will be subsidized by the government, but the end-beneficiaries are farmers.
--Data sources : Budgetary documents of the Ministry of Finance, 1996, 1997, 1998 and 1999.
__________