| In today's international trade, the cases of international subsidies and countervailing subsidies substantially increased. From the early 20th century, there are nearly 100 lawsuits against China's anti-subsidy and anti-dumping cases, which are mostly from the European Union, the United States, Canada and other developed countries, especially for low-cost Chinese-made products. Joined in the WTO, China have made great progress in the economy and foreign trade. At the meantime, there are more and more discipline for Chinese so called illegal subsidies in the international market. But the measures of protect our mainland market are still in the initial state. There are still many loopholes, especially for the subsidies and countervailing one for the upstream issue. However, such cases have become one of the problems to be solved in practice. Recently the caes of anti-subsidy investigations against U.S. chicken of fat is a great test of our laws on subsidies and counterverailing measures.This thesis is a study of upstream subsidy and countervailing system in American in the basic theory. The main purpose is to enable our system to be perfect in subsidies and countervailing subsidies system. At the very begining, it is from the basic theory on subsidies and countervailing measures. Then the analysis of the upstream Subsidy system is reasonable. Secendly, it concludes that the upstream subsidy system and the international laws are compatible. The paper also analyzes the process of economic analysis that is a means of study the system of subsidies and countervailing. At the same time due to upstream subsidies and countervailing cases at the international level have occurred often, the laws to regulate them is still seldom, only in USC have some provisions of upstream subsdies in detail, which has many problems. This thesis also analyzes the law system in American so that China learn from its upstream subsidies and countervailing system more comprehensively, completely and objectively.
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