Legal Issues On Subsidies To Chinese State-owned Enterprises

As China is in the process of economic transformation, Chinese state-owned enterprises (hereafter referred to as SOEs) are faced with significant reform in respect of their restructure. Protocol on the Accession of the People's Republic of China (hereafter referred to as Protocol) makes a special provision on the subsidies to SOEs, acknowledges specificity of subsidies to SOEs and promises to clear up all prohibited subsidies. During the process of reform, whether the original SOEs obtained actionable subsidies, the given subsidies remain in restructured enterprises and subsidies will lead to anti-subsidy investigations into the restructured enterprises initiated by other members of World Trade Organization's (hereinafter referred to as WTO), etc, are issues needed to be researched and understood. Because Chinese SOEs play an important role in national economic construction and public service, where the issue of subsidies is handled properly will probably affects the survival of the SOEs, even development of national economy. Therefore, for SOEs, especially those in the process of restructure, study and analysis of WTO documents on subsidies to the SOEs as well as relevant important cases contributes to prevent or deal with relevant anti-subsidy investigations or litigation and successfully complete their restructure.Besides the preface and the conclusion, this thesis is composed of the following five chapters:Chapter One defines SOE and subsidies to it. Firstly, by comparing the definition regulated by relevant international documents, domestic laws and regulations of some WTO members and China and some authoritative scholars, this chapter summarizes the definition of SOEs more suitable for Chinese national situation, and introduces classification of SOEs from different perspective; Secondly, pursuant to the definition of subsidies in Agreement on Subsidy and Countervailing Measures (hereinafter referred to as SCMA), this chapter defines the subsidies to SOEs.Chapter Two introduces the history and current situation of subsidies to SOEs. This chapter firstly briefly summarizes several historical periods of subsidies to Chinese SOEs since the establishment of PRC; then analyzes Chinese present situation of subsidies to SOEs.Chapter Three analyzes the application of rules on subsidies to SOEs. This chapter divides relevant rules into two parts---- general rules in relevant WTO documents and special rules in China's WTO accession document on the SOEs. The two parts respectively interpret the rules of subsidies to SOEs from general and specific aspects.Chapter Four analyzes legal issues on subsidies incurred in the process of SOEs'restructure. Based on analysis basic meaning of and Chinese practice related to the SOEs'restructure, the chapter focuses on the possible "benefits transfer" issue incurred in the process of restructure: the analysis of benefits transfer adopts the method of case study which analyzes theories and practices of United States as a strong countervailing power and the judgments on this issue reached by WTO dispute settlement body; after which the author puts forward her own points of view.Chapter Five discusses the challenges and solutions in respect of subsidies to Chinese SOEs. The challenges mainly come from three aspects: a large number of subsidies to SOEs needed to be cleaned up, great social responsibilities imposed on basic SOEs and disorder on subsidies to local SOEs. As to the above challenges, this chapter summarizes solutions to deal with all kinds of issues in respect of subsidy involved in this thesis.