Kaiwen Wang updated his research on fishery subsidy reform and capacity management in China. While the WTO is devoting negotiations on restricting the use of fishery subsidies, the actual effect of subsidies on fishery is under debate and lacks empirical evidence.  Kaiwen compiles a unique dataset for a fleet of more than 9000 trawlers in China from archives of the vessel management database and exploits the quasi-experiment in policy design to identify the impact of the 2016 nationwide fuel subsidy reform on China’s fleet capacity dynamics. Kaiwen estimates the impact of subsidy level on fishers’ vessel scrapping decisions using multiple approaches including regression discontinuity, survival analysis, and fixed-effect regression.  He finds that the reduction in fuel subsidy leads to higher vessel scrappage, and older and smaller vessels are more vulnerable to the shock of subsidy reduction.