China's Status Of Subsidy And Counter Measures-On The Analysis Of American Countervailing Law

With China entering into WTO, a great number of scholars focus their attention on the study of anti-dumping, which reflects that China really cares about this subject. Anti-dumping measures, countervailing measures and safeguard measures are permitted under WTO legal system, which may influence international trade. While, studies on subsidy and countervailing are much less than studies on dumping and anti-dumping at present in China. It may be resulted from the fact that no countervailing investigation against China has occurred. Situation has been changed since Canada Government proceeded with countervailing investigations on the products imported from China for three times in 2004. I think we should pay more attention to the studies of subsidies and countervailing measures, especially American laws in this respect. The reason is that on the one hand America is the only country with countervailing tradition and the one that conducts the most countervailing investigations, on the other hand America is one of the most important trading partner to China. Thus brings into this thesis. This thesis is consisted of three sections in total. The first section focuses on the history of American countervailing law, the source of American countervailing law, the content of American countervailing law, the relationship between American countervailing law and WTO Agreement on Subsidy and Countervailing Measures , the meaning of important terminology about countervailing. The author searched and collected a lot of countervailing cases especially those in which China was involved so that we can prepare well. In the second section, the author indicates that it is important and urgent to pay much attention to America countervailing. For a long time, most of us considered that there is no need to worry about America countervailing against China, because America has not acknowledged China as Market Economy Country. This opinion is wrong and even harmful. In American history, there are cases that countervailing investigation can be proceeded against Non-Market Economy Country. Since 27 countries acknowledged China as Market Economy Country, there is a lot of discussion in America recently. That is to say effort has been put into acknowledgement of China's Market Economy status in America. We shall study American countervailing law immediately; otherwise we will be hurt badly. Subsidy is a necessary measure in each country, which accelerates speed of economy growth, promotes export and protects internal industries when they are in infant period. But on the other hand, it also causes adverse effects to the interest of other countries, and it is also an obstacle to free trade. Consequently, subsidy is limited and even prohibited when it do harm to the other countries. Subsidy is lawful and reasonable in some way. We shall make the best use of subsidy to develop our county. As far as China is concerned, on one aspect, China must obey the provisions of SCM, on the other hand, China needs appropriate subsidy means to protect and develop internal industries and promote economy growth. Therefore, in the last section, I based on some typical practices in Canada countervailing cases as an example, to analyze whether they are consistent with American countervailing law. To give same suggestions, such as what we can do, what we cannot, and how we should do in this field.