Research Report on Chinese Industrial Subsidies

The U.S.-China Economic and Security Review Commission (hereafter the Commission) invites submission of proposals from contractors capable of providing a one-time report investigating the subsidies which the government of the PRC provides to both domestic and foreign firms in China, and the effects which these subsidies might have on the competitive ability of U.S. firms.



Key issues and questions to be addressed by the report are:



Examine the nature and scale of national, provincial, and local PRC government subsidies to what have been officially defined as absolute control and heavyweight industries, with particular emphasis on those companies in the manufacturing sector which could be in competition with U.S. firms. The study would seek to identify specific subsidy levels. It would also examine the extent to which these subsidies provide a competitive advantage to PRC firms.

The study would also note past subsidies which may have been either significantly reduced or ended, but which provided benefits to the producer or sector.

The study would note those subsidies which could be considered prohibited or actionable under World Trade Organization (WTO) agreements.

The study would also examine the nature and scale of PRC government subsidies and other incentives to U.S. and Western firms which locate research and/or production facilities in China. Determine whether or not there are any identifiable patterns to these incentives, and whether or not they might reveal considerations other than local employment levels, such as longer-term ambitions to acquire foreign expertise and technology, or to create economic dependencies in certain economic sectors.



A full description of the request for proposal may be found on the Commission's website at: www.uscc.gov