Abstract:After the strategy of national poverty alleviation shifts from eliminating absolute poverty to solving relative poverty, it is necessary to restore the subsidies to disadvantaged regions which has failed in WTO for providing a “relief valve” for regional subsidy. Based on the criteria of regional specificity that determines whether regional subsidies can be considered legal are relatively vague and the conditions of disadvantaged regions that determines whether regional subsidies can be exempted are relatively negligent, it is necessary for China to clarify the ambiguities of criteria on regional specificity and complete the omissions of conditions on disadvantaged regions. In terms of the former, China should claim that both local governments and central government are grant authorities, emphasize that all enterprises and some enterprises are not relevant with certain enterprises in the case that regional subsidies overcompensate the disadvantages of disadvantaged regions, add purpose limits to the designated areas where the subsidized enterprises lie. As far as the latter, China should design a multi-dimensional indicators, build a gradient benchmark and set a deterministic standard of disadvantaged regions.