RESTRICTED WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIOWT/ACC/CHN/38/Rev.2
2 July 2001
(01-3307)
Working Party on the
Accession of ChinaOriginal:  English/
anglais/
inglés
COMMUNICATION FROM CHINA
Revision
In preparation for the Working Party meetings on 28 June-4 July 2001, the Chinese delegation
has submitted the following revised document on Domestic Support.1
Groupe de travail del'accession de la Chine
COMMUNICATION DE LA CHINE
Révision
En vue des réunions du Groupe de travail qui auront lieu du 28 juin au 4 juillet 2001, la
délégation chinoise a communiqué le document révisé 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 28 de junio al 4 de julio
de 2001, la delegación china ha presentado el siguiente documento revisado relativo a la ayuda
interna.1
                                                     
1 In English only./En anglais seulement./En inglés solamente.WT/ACC/CHN/38/Rev.2
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 programs and research activities at CAS, CAAS,
PAAS, sub-national 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 and disease 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
Documents
of 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 the field of agriculture.Exempt under Annex 2, para 2. (c) average 208Outlay
Documents
of MOF
1996 5635
1997 6111
1998 7008iv) Extension and
 advisory servicesOperating expenditures of the agricultural extension and advisory institutions6 of
MOA and sub-national governments.  Exempt under Annex 2, para 2. (d)
average 6251Outlay
Documents
of MOFWT/ACC/CHN/38/Rev.2
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) Marketing and promotional
 servicesOperating expenditures to AIC, SGOIC and AFO
8.  Since it is unable to partition
from these expenditures relevant outlay items, they are included in “viii) Other
general services” in this table.  Exempt under Annex 2, para 2. (f)average 0
1996 40367
1997 44907
1998 60483vii) Infrastructure
  servicesOutlays to agricultural infrastructure services, including flood control engineering,
drainage and irrigation facilities, rural roads, rural electricity reticulation, as well asenvironmental programs related to rural afforestation, soil and water conservation.
Exempt under Annex 2, para 2. (g) average 48586Outlay
Documentsof 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
9, as well as pensions to retired employees of the above-mentioned
government agencies.  Exempt under Annex 2, para 2. average 16006Outlay
Documents
of MOF
1996 28773
1997 35335
1998 51027b) Public stockholding
 for food security purposesOutlays of public stockholding of wheat, corn, rice, vegetable oils and sugar for
food security purposes.
10  Exempt under Annex 2, para 3.
average 38378Outlay
Documents
of MOF
1996 2012
1997 1875
1998 1766c) Domestic food
 aidFinancial assistance to low-income urban and rural citizens in order to help them
attain staple food.11  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.2
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 programsNo 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,12 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
 retirement programsNo expenditures
average0
1996 0
1997 0
1998 0h) structural
 adjustment
assistance
 provided through resource retirement
 programsNo expenditures
average0
1996 0
1997 0
1998 0i) structural
 adjustment
 assistance provided
 through investment
 aidsNo expenditures
average0
1996 4954
1997 5460
1998 5620j) Environmental
 programsOutlays 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 administrative
agencies of forestry, including SAEP , SAF and AEPs, AFs of sub-national
governments.
13  Exempt under Annex 2, para 12average5345Outlay
Documentsof MOFWT/ACC/CHN/38/Rev.2
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 programsOutlays for poverty reduction program.14  Exempt under Annex 2, para 13.
average 9000Outlay
Documents
of MOF
1996 112178
1997 131254
1998 210815Total
average 151416WT/ACC/CHN/38/Rev.2
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
1997
19981) Investment subsidies
 generally available to
 agriculture
average
1996
1997
19982) Input subsidies generally
 available to low-income or
 resource poor producers
average
1996
1997
19983) Domestic support to
  producers to encourage
diversification from growing  illicit narcotic cropsaverageWT/ACC/CHN/38/Rev.2
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.2
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)Base Total AMS
(aggregate)  15 Comments
12 3 4 5
million RMB yuan
Wheat -7946 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)
294020 de minimis
Base Total AMS 0WT/ACC/CHN/38/Rev.2
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
price16
(RMB yuan/ton)External reference
price 17&18
(RMB yuan/ton)Eligible
production19
(1000 tons)Associated fees /
levies
(million RMB
yuan)Total market price
support
 (million RMB
yuan)Data sources
1 2 3 4 5 6 7 8=(4-5)*7 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.2
Page 10Supporting 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.2
Page 11Supporting 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
Product-
Specific
AMSData
sources
1 2 3 4 5 6 7=(4+5-6) 8 9 10=(7+8+9) 11
million 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 935WT/ACC/CHN/38/Rev.2
Page 12
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
Product-
Specific
AMSData
sources
1 2 3 4 5 6 7=(4+5-6) 8 9 10=(7+8+9) 11
million RMB yuan
1996 -5491 -5491
1997 -3261 -3261
1998 -6241 -6241e) Cotton
average -4997 -4997WT/ACC/CHN/38/Rev.2
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.2
Page 14 Supporting 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
million RMB yuan
1996 26559 26559
1997 24524 24524
1998 33242 33242a) Input subsidies20
average 28108 28108Outlay
Documents o f
MOF
1996 1468 1468
1997 1535 1535
1998 880 880b) Interest Subsidy for Poverty
Reduction Loans .21 .
average 1294 1294See notes
1996 28027
1997 26059
1998 34122Total
average 29402WT/ACC/CHN/38/Rev.2
Page 15Schedule VIII-People’s Republic of China
Part IV: Agricultural Products: Commitments Limiting Subsidization
(Article 3 of the Agreement on Agriculture)
Section I – Domestic Support: Total AMS Commitments
Base Total AMS Annual and Final Bound Commitment Levels
(Calendar Year)Relevant Supporting Tables and Document
Reference
12 3
0 WT/ACC/CHN/xxWT/ACC/CHN/38/Rev.2
Page 16                                                      
Notes
1 The data in the table are outlays for calendar years, which come  from the Outlay Documents of the Ministry of Finance. The out lay data include both the outlays of the national
and sub-national governments.
2 All the abbreviations in the Supporting Tables are included in the Appendix DS1-1.  CAS, CAAS, PAAS and sub-national agricultu ral institutes are public agricultural institutes
set up by governments at various levels.  Their major responsibilities are to make agro-scientific research, including improved  varieties development, plant protection, dry
farming and water-saving irrigation, soil and water conservation, plant and animal sciences, and integrated agricultural system s.
3 The three expenditures on agro-science and technology are under the outlay heading for public agricultural institutes in the b udget allocations, 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 support of the natio nal and sub-national governments.  NATEC under
MOA consists of plant pest and disease inspection division, prevention and treatment division, medical equipments division and plant 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 in spection and prevention of animal diseases.
ATECs and HVSs are also established at various levels from prov incial to township's, which are responsible for the prevention o f plant and animal diseases in their respective
regions.  The outlays are from the financial departments at various levels.
5 Agricultural training institutions are established by governments at various levels, including International Exchange Service Center under MOA, Central Broadcast and TV
School for Agriculture, and Agricultural Training College /Centers, which provide training to agricultural administrative staff  and technical training to farmers.  Sub-national
governments also set up their own agricultural training centers.   Operating expenditures of the institutions are from budget al location 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 institu tions are included in extension and advisory services to agr icultural producers and funded by the budget
allocation at various levels.
7 Inspection agencies of agricultural products:  SAIQ which is responsible for inspection and quarantine of imported and exporte d animals and plants, and PEI, VDSI, AQI under
MOA which are responsible for monitoring and supervision of pesticide residue, veterinary drug residue and animal disease.  Exp enses of these institutions are covered by
expenditures of governments at various levels.
8 AIC under MOA and SGOIC under SAG are responsible for providing official information on production and prices of agricultural products to the public; AFO under MOA is
responsible for holding the national wide agricultural fairs.
9 Expenditures for other general services also include expenses of the following non-profit institutions: AIC, SGOIC and AFO see  above; 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 responsible for
providing services to TVEs.  Expenditures of these institutions, as well as their payment for retired staff are covered under t his heading.WT/ACC/CHN/38/Rev.2
Page 17                                                                                                                                                                                                                                                                   
10 In order to safeguard food security, the Chinese government set up the Buffer Reserve System to agricultural products that hav e a significant bearing on the national economy
and people's livelihood, namely wheat, rice, corn, vegetable oils and sugar.  In the 1996-1998 base period, the buffer reserve of grain for food security purposes was conducted in
the following ways:
(1) Wheat, rice and corn :  According to the State Buffer Reserve System for food security purpose, State-owned grain enterprises at provincial, county and
township levels designated by the State purchase wheat, rice and co rn at the government procurement prices within the procureme nt amount predetermined by the
System, and then state-owned grain reserve enterprises reserve the purchased grains.  When food security is endangered due to n atural disasters or reduction of grain
production, the designated state-owned grain enterprises sell the reserved grains at market prices.  Outlays for the program co ver all the operating costs, including
transportation and storage costs, and loan interest.  This inform ation is provided according to F ootnote 5 of Annex 2.  The Sta te sets government procurement amount
and government procurement prices of wheat, rice and corn, as shown in the AMS calculation of wheat, rice and corn in Supportin g Table DS 5.
(2) Vegetable oils and Sugar :  The State purchase vegetable oils and s ugar at market prices and set procurement amount through enterprises, and store the
purchased vegetable oils and sugar through reserve enterprises.  In case of natural disaster when food security of residence is  endangered and base nutrition level is
decreasing, the State sells the reserved vegetable oils and suga r at the market prices. Outlays for the reserve program cover o perating costs related to transportation,
storage and loan interest.
11 The people eligible for food assistance in 1996 and 1997 were the people of “no working ability, no dependence and no income s ource”.  From 1998, the people eligible for
food assistance should be those below the minimum income level defined by governments at various levels.  Food assistance is pr ovided by governments in forms of cash and
food.
12 Eligibility to such a payment for farmers is determined by a production loss which exceeds 70% of the average of production in  the preceding three-year period. The
government assesses the loss of agricultural production of farmers based on statistics provided by MCA, SMB, MOA/PDA, MWR and S SB, and makes verification through field
survey conducted by a working group composed of officials from all relevant governmental agencies.
13 AEPs and AFs at the national and sub-national levels are responsible for the implementation of environment protective program.   China increased outlays for bioenvironmental
program and set up the program of natural forestry protection in 1998.
14 Poverty alleviation program:  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 poor coun ties 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 Pro vince; 39 in Hebei Province; 35 in Shanxi
Province; 28 in Henan Province; 28 in Guangxi Autonomous Region; 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 Autonomous Region; 11 in Heilongjiang Province; 9 in Liaoning Provinc e; 8 in Ningxia; 8 in Fujian Province; 5 in
Haina Province.
Financial outlays for poverty reduction are used to help poor areas develop the following projects: small-scale reservoirs, far mland facilities, drinking water projects,
afforestation, pasture, roads and bridges, rural hydro-power stations, electricity transmission lines, rural markets and school s.
The payments also serve specific agricultural development progra ms for Dingxi and Hexi prefectures (in Gansu Province) and Xiha igu prefecture (in Ningxia Autonomous
Region).WT/ACC/CHN/38/Rev.2
Page 18                                                                                                                                                                                                                                                                   
Appendix 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
AFO Agriculture Fair Office
Afs Provincial or county level Administration of ForestAIC Agricultural Information Center
AMTDES Agricultural Mechanization Technology Development and Extension Station
AQI Animal Quarantine InstituteASRCC Administrative Station of Rural Cooperative Economy
ATECs Agro Technical Extension Center
ATESs Aquatic Technology Extension StationCAAS Chinese Academy of Agricultural Sciences
CAS Chinese Academy of Sciences
CATEC County-level Agro technical Extension CenterFD Provincial or county level Financial Department
HVSs Husbandry and Veterinary Station
ICBC Industrial and Commercial Bank of ChinaMATEC Municipal/Prefectural-level Agrotechnical Extension Center
MCA Ministry of Civil Affairs
MFTEC Ministry of Foreign Trade and Economic CooperationMOA Ministry of Agriculture
MOF Ministry of Finance
MOST Ministry of Sciences and TechnologyMWR Ministry of Water Resources
NAMTDES National Agricultural Mechanization Technology Development and Extension Station
NATEC National-level Agrotechnical Extension CenterNATES National-level Aquatic Technology Extension Station
NHVS National Husbandry and Veterinary StationWT/ACC/CHN/38/Rev.2
Page 19                                                                                                                                                                                                                                                                   
PAAS Provincials Academy of Agricultural Sciences
PADO Poor Area Development Office
PATEC Provincial-level Agrotechnical Extension Center
PBC People’s Bank of ChinaPDA Provincial Department of Agriculture
PEI Pesticide Examination Institute
POE Privately-Owned EnterpriseRCRE Research Center for Rural Economy
RMB yuan Renminbi yuan, Chinese currency
SAEP State Administration of Environmental ProtectionSAF State Administration of Forest
SAG State Administration of Grain
SAIQ State Administration of Entry-Exit Inspection and QuarantineSDPC State Development and Planning Commission
SGOIC State Grain and Oils Information Center
SMB State Meteorological BureauSMC Supply and Marketing Cooperatives
SSB State Statistical Bureau
TATEC Township-level Agrotechnical Extension CenterTVEs Township and Village Enterprises
VDSI Veterinary Drug Supervision InstituteWT/ACC/CHN/38/Rev.2
Page 20                                                                                                                                                                                                                                                                   
Appendix 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 Yuan1996 US $ = 8.314 Yuan
Data Sources:
SSB, Statistical Yearbook of China 1999.
15 Calculations details are shown in Appendix DS4-1.
Appendix DS4-1:  de minims adjustment
Description of basic
productionCalendar yearCalculated AMS before de
minimis exemption (from
Supporting Tables DS:5 to DS:7
below)Value of Production  1/Calculated AMS as
percentage of the value
of productionTotal AMS after de
minimis  exemption  2/
1 2 3 4 5 = 3/4 * 100% 6
million RMB yuan million RMB yuan % million RMB yuan
a) Wheat Average of 1996-98 -7946 166046 0.00 0.0
b) Japonica Rice Average of 1996-98 -9340 86932 0.00 0.0
c) Indica Rice Average of 1996-98 -3869 199576 0.00 0.0
d) Corn Average of 1996-98 935 135023 0.69 0.0
e) Cotton Average of 1996-98 -4997 59299 0.00 0.0
Total Non-Product-
SpecificAMS (fromSupporting Table DS:9)Average of 1996-98 29402 2048860 1.44 0.0WT/ACC/CHN/38/Rev.2
Page 21                                                                                                                                                                                                                                                                   
Notes:
1/  Value of Production:
(1) Value of production for specific product = Production x Producer price.  Calculation details are shown in Appendix DS 4-2.(2) Total value of agricultural production is reported by SSB, as shown in Appendix DS 4-3.
2/  AMS is not subject to reduction or inclusio n in the Total AMS because the calculated AMS is de minimis  exclusion.
Appendix DS 4-2: Production Value of Specific Product
Production 1/ Producer Price 2/ Value of Production
Products 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 59299
Notes:
1/  Data for production of wheat, corn and cotton are contained in Statistical Yearbook of China  published by SSB in 1999.
Data for production of japonica rice, indica rice are contained Agricultural Statistical Data published by MOA in 1999.WT/ACC/CHN/38/Rev.2
Page 22                                                                                                                                                                                                                                                                   
2/  Producer prices are the weighted average of market prices and government administered prices for specific products, which i s calculated and reported by SSB.
Data for producer price are contained in Rural Economic Statistical Yearbook of China  published by SSB in 1999.
Appendix DS 4-3:  Total Value of Agricultural Production
YearValue of Production
(million RMB yuan)
1996 1955972
1997 2066355
1998 2124253Total Value of
Agricultural Production  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 Value of Agricultural Production = Production Value of Crop Products + Production Value of Livestock Products.
Data Sources:
SSB,  Statistical Yearbook of China , 1999.
16 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
security.  Calculation details on Market Price Support under State Procurement Price Policy is shown in the Appendix DS 5-1.
-- Terminology of State Procurement Pricing Policies:
(a) In 1985, the government reformed the purchase and marketing system of agricultural products and eliminated the State monopo ly system for purchase and
marketing of agricultural products and began to implement contract purchase system of agricultural products produced by farmers . Therefore, the term "state
contract purchase price" was used for the 1985-1990 period.WT/ACC/CHN/38/Rev.2
Page 23                                                                                                                                                                                                                                                                   
(b) In 1990, the Chinese government changed the term of "contract purchase system" with "state procurement system". However, "c ontract purchase price" was
still used in parallel with "state procurement price" at that time.
(c) Starting from 1996, "state procurement price" was adopted.  And in the same year, the government dropped the state negotiat ed purchase price system.
--Products Coverage:
Before 1995, the state procurement pricing system covered many  agricultural products, including wheat, rice, corn, cotton, soyb eans, rape seeds and sugar crops
etc. In the 1996-1998 base period, the products covered by the system only include wheat, rice, corn and cotton.
Appendix DS 5-1  Market Price Support by State Procurement Price Policies
Description of
basic productsCalendar
yearState Procurement Price
(RMB yuan/ton)
1/External reference price
(RMB yuan/ton)
2/Eligible production
('000 tons)
3/Total market price support
 (million RMB yuan)
1 2 3 4 5 6=(3-4)*5
1996 1480.0 1885.0 15000 -6075
1997 1480.0 1629.6 15000 -2244
1998 1420.0 1579.8 15000 -2397a) Wheat
average
1996 2200.0 3682.9 5250 -7785
1997 2200.0 2862.1 5250 -3476
1998 2114.3 3326.9 5250 -6366b) Japonica
  Rice
average
1996 2142.9 3082.1 10500 -9862
1997 2142.9 2033.0 10500 1153
1998 1931.4 1913.9 10500 184c) Indica Rice
average
1996 1120.0 1581.4 12500 -5767
1997 1240.0 1075.8 12500 2052
1998 1180.0 939.2 12500 3010d) Corn
average
1996 14000.0 15306.3 4203 -5491
1997 14000.0 14708.6 4602 -3261
1998 12350.0 13736.5 4501 -6241e) Cotton
averageWT/ACC/CHN/38/Rev.2
Page 24                                                                                                                                                                                                                                                                   
Notes:
1/  The government procures wheat, rice, corn and cotton from farmers through state-owned grain enterprises at state procuremen t price in order to safeguard
food security.
2/  see Endnote 2 below.3/  see Endnote 4. below
Data sources:
The data for State Procurement Price are reported in China's Agricultural Development Report published by MOA.
(2) Protective Price System:
Chinese government adopted the protective price policy in 1993. The purpose of the policy was to safeguard farmers' income.  Pr otective price determined by farmers’
production cost plus a certain amount of profit. In fact, the policy was not implemented until 1997, when the government began to require the state-owned grain
enterprises to purchase farmers' grain at protective price.  Calculation details on Market Price Support by State Procurement P rice Policies is shown in the Appendix
DS 5-2.
--Products Coverage:
In 1997-98, the products covered by the protective price policy were wheat, rice and corn.
Appendix DS 5-2  Market Price Support by State Protective Price Policies
Description of
basic productsCalendar
yearProtective Price
(RMB yuan/ton)
1/External reference price
(RMB yuan/ton)
2/Eligible production
('000 tons)
3/Total market price support
 (million RMB yuan)
1 2 3 4 5 6=(3-4)*5
1997 1340.0 1629.6 31002 -8979
1998 1260.0 1579.8 12956 -4144 a) Wheat
average
1997 1971.4 2862.1 6452 -5746
1998 1914.3 3326.9 3290 -4647b) Japonica
  Riceaverage
1997 1885.7 2033.0 12903 -1901
1998 1734.3 1913.9 6580 -1182 c) Indica Rice
average
1997 1100.0 1075.8 14422 349
1998 1060.0 939.2 26174 3161 d) Corn
averageWT/ACC/CHN/38/Rev.2
Page 25                                                                                                                                                                                                                                                                   
Notes:
1/  The protective price set up by the government is to safegua rd farmers' income.  The state-owned grain enterprises were desi gnated to purchase farmers' grain
at protective price and pre-set amount.
2/  see Endnote 2 below.3/  see Endnote 4 below.
Data sources:
The data for Protective Price are provided by SAG and SDPC.
17 External Reference Price:
(1) Wheat & Cotton : These two products were net-import products in the 1996-1998 base period, therefore, their external reference prices were det ermined by the CIF prices, on
the basis of China's Customs statistics. See Appendix DS 5-3 for calculation details.
(2) Corn, Japonica Rice and Indica Rice : These three products were net-export products in the 1996-1998 base period, therefore, their external reference prices were d etermined by
the FOB prices, on the basis of China's Customs statistics.  See Appendix DS 5-4 for calculation details.
18 Exchange Rate: see Appendix DS 1-2 at the Supporting Table DS 1.
19 Eligible Production:
(1) Eligible production for grain:
(a) Eligible Production for State Procurement Price refers to the amount purchased by state-owned enterprises from farmers at s tate procurement price for the food security
purpose (see Endnote 10 of Supporting Table DS 1).
(b) Eligible Production for Protective Price refers to the amount purchased by state-owned enterprises from farmers at protecti ve price in order to protect farmer’s income.
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 purchased by state-owned cotton  enterprises at state procurement price.
Data sources:
The data of cotton production are reported in Statistical Yearbook of China  published by SSB in 1997, 1998 and 1999.WT/ACC/CHN/38/Rev.2
Page 26                                                                                                                                                                                                                                                                   
Appendix DS 5-3:  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 Appendix DS 1-2 at Supporting Table DS 1.
Data sources:
General Administration of Customs,  Statistical Yearbook  of Chinese Customs, 1997, 1998 and 1999.WT/ACC/CHN/38/Rev.2
Page 27                                                                                                                                                                                                                                                                   
Appendix DS 5-4:  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 Appendix DS 5-4, Japonica rice exported as foreign food aid are not calculated.  The export of Japonica rice in 1996 cal culated here includes the
exports to Russia, Kazakhstan, Kirghistan, Korea, Libya, Mongolia and Japan, while that in 1997 includes the exports to Austral ia, Bulgaria, Russian,
Kazakhstan, Kirghistan, Canada, Libya, Romania, Mongolia, Japan, Turkey, Ukraine, Spain and Jordan, and that in 1998, includes the exports to Russia,
Kazakhstan, Korea, Kirghistan, Libya, Mongolia, South Africa and Japan.
2/  In the table, Indica rice exported as foreign food aid are not calculated. The export of Indica Rice in 1996 calculated her e includes the exports to Macao,
Mauritius, Hong Kong, Singapore, while that in 1997 includes the exports to UAE, Macao, Togo, Philippine, Cuba, Ghana, Cote deV ior, Kenya, Mauritius, Hong
Kong, Singapore, Indonesia, and that in 1998, includes the expor ts to UAE, Macao, Philippine, Mauritius, Hong Kong, Singapore a nd Indonesia.
3/  Exchange Rate: see Appendix DS 1-2 of  Supporting Table DS 1.
Data sources:
General Administration of Customs,  Statistical Yearbook  of Chinese  Customs, 1997, 1998 and 1999.
Notes
20 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 mulching film were involved in the Input Subsidy Program during the 1996-1998 base period.WT/ACC/CHN/38/Rev.2
Page 28                                                                                                                                                                                                                                                                   
Data sources:
MOF, Outlay Documents of the Ministry of Finance, 1997-1999.
21 Interest Subsidy for Poverty Alleviation Loans: As a support to poverty reduction, ADBC (1996-1997) and ABC (1998) provided lo ans with preferential interest rate to
agricultural producers in poor areas (for the definition of poor areas, please refer to Endnote 14 of Supporting Table DS 1).  The gap between the base interest rate and the
preferential interest rate was subsidized by the budget allocation, the calculation details of which is contained in Appendix D S 9-1.
Appendix DS 9-1: Interest Subsidy for Poverty Alleviation Loans
YearBase interest
rate  1/Preferential
interest rate
2/Interest rate
subsidyValue of
outstanding
preferential
loansValue of interest subsidy on
preferential loans
(%) (%) (%)(million RMB
yuan)(million 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 Alleviation
Loans with 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 Alleviation
Loans with preferentialinterest rate
Average 211.7
1996 1467.7
1997 1534.8
1998 879.9Total
Average 1294.1
Notes:
1/ Base interest rate was set by the PBC.  During the 1996-1998 base period, there was no market interest rate in China.
2/ Preferential interest rate on one-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.
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