Research And Legislative Conceptualization Of China's Subsidy And Counter-subsidy System Under WTO Framework

With the rise of China's status in the international business and the acceleration of the economic globalization and trade liberalization, disputes in business have become a serious problem in international trade. As the important legal means to insure the fairness of trade and to protect the interest of home industries, the importance of the subsidy and counter-subsidy system in international trade has been widely recognized. The research and innovation of the subsidy and counter-subsidy system have become the focus of the governments all over the world, the most important of which is how to increase subsidy on home products and restrict subsidy on others within reasonable means. This thesis is based on this specific historical stage that China now lie in.Subsidy refers to the financial contribution, direct or potential transfer of the capital any public body offers, the return of government income, the products and services aside from the basic industries that government provides, payment to financial or private institutions who help to fultill these functions. Its characteristics lie in its specificity, i.e. the subsidy given to specific enterprises are to be recognized by this agreement. On the other hand, the subsidy given to all the institutions in the society is the unspecific subsidy. In WTO Uruguay Conference, subsidy is classified as Prohibited subsidies, Auctionable subsidies and Non-actionable subsidies.The WTO norms about subsidy and counter-subsidy are WTO "Agreement on Subsidy and Counter-subsidy Measures" (SCM), WTO "Agricultural Agreement", WTO "General Agreement on Services and Trades". At the same time, many countries also adjust their own legal measures in accordance with these agreements. These mature norms and rules have good directive role on the improvement of China's subsidy and counter-subsidy system.Under WTO framework, the reconstruction of China's subsidy legal system includes the following points: 1. Agriculture has the top priority in our society, soits legal system for subsidy should be considered first to match WTO Agreement framework. On one hand, we should attach importance to our posture and actions on support of the Non-actionable subsidies from new-round negotiation; on the other hand, we should improve the legislative system of China's agricultural subsidies. 2. The value orientation of the China's subsidy rules is to be relocated, on the basis of respecting our economic independence with an aim to develop our own industries and contribute to the fair international trade. 3. The specific system for subsidy and counter-subsidy should be constructed, including the improvement of legal definition of subsidy, the adjustment of the quantity and form of subsidy, improvement of the export tax reimbursement system, solving disagreement through WTO and establishment of the related system, etc.