China announced a new program yesterday that provides subsidies for firms that export technology services and software. I haven’t read up on my WTO anti-subsidy law for a couple of years, but I would certainly like to know how this plan will pass muster.

Here are the very scarce details at this time:

China will provide subsidies for firms exporting technology services and software, the country’s Ministry of Finance said on Thursday.

In a statement posted on its website, the ministry said export deals exceeding $100,000 which received letters of foreign exchange payment from banks last year are eligible to apply for the subsidy.

The subsidy rate will be up to the one-year loan rate announced most recently by China’s central bank. A company can receive up to 5 million yuan ($736,420), the statement said.

Subsidies are basically financial benefits conferred on enterprises by governments. Some of these violate WTO law, and some do not. Basically, if a subsidy is “specific” and causes “adverse effects” it is deemed in violation of WTO law. If the subsidy is contingent upon exports, it’s automatically “specific.” (See more on the SCM Agreement on the WTO’s site.)

Disclaimer: there are many reasons why a particular program may be able to wiggle its way out of those definitions I described above. One or more of them might be applicable here.

One assumes that someone at the Ministry of Finance commissioned a paper explaining why this program is WTO compliant. I’m just saying that I’d really love to read that paper, or at least learn more about this new program. I also wouldn’t mind hearing what the Business Software Alliance has to say about this.