Research On Subsidy And Anti-subsidy After China's Accession To WTO

As an important method of interfering in economic activities, subsidy is widely used all over the world. A subsidy shall be deemed to exist if there is a financial contribution by a government or any public body offered to an enterprise or industry within the territory of a member, which increases exported goods or decreases imported goods, or damages the interest of other members consequently.But, when subsidy promotes the realization of one country' s social and economical target, it may damage the fair competition with other countries' corporations. So many countries also take countervailing measures to reject the damage of subsidy, so as to protect the domestic industry and keep the fair order of competition. With the development of international trade, the conflict between subsidy and anti-subsidy becomes more and more severe.After China' s accession to WTO, our economy will take part in the international competition on further degree. In the past, we received less investigations and lawsuits of subsidy from other countries. It was not because that subsidy didn' t exist in China, but that the developed countries took China as "non-market economy country" . They thought that the countervailing law wasn' t applicable to non-market economy country, so they often used anti-dumping lawsuit as a substitute. But now, with the establishment of market economy, China' s status of market economy will be admitted step by step. Moreover, according to the regulations of WTO, whether the subsidy giver is a market economy country is not taken into consideration when confirming the existence of the subsidy. So, After China' s accession to WTO, our country may face the disputes of subsidy at any time.Having done a research on the actuality of subsidies in our country, we can find many deficiencies of our subsidy policies. For example, we don' t make full use of non-actionable subsidies; prohibited subsidies still exist in our country; many of our subsidy policies have specificity and so on. The latter can specially expose our country to other countries' litigations. As China is a developing country, the development between domestic regions is not equal, so subsidy is still an important part of our economical development. Consequently, our subsidy policies are in need of urgent modification. If we can deal with the subsidy problem properly, we can not only continue with the necessary subsidy measures, but also efficiently restrict other countries' countervailing measures, so as to protect our economical and commercial interests even more effectively.Meanwhile, the foreign products with subsidy have been exported to our country increasingly. In order to promote the development of our economy, we must put the subsidy to full use. At the same time, we need urgent countervailing measures to keep the fair trade order and protect our industry from damage. But our legislation of subsidy and anti-subsidy is insufficient by contrast with the ((Agreement on Subsides and Countervailing Measures)) and the relative laws of the developed western countries. Our countervailing measures are less affluent and advanced than those of the developed countries. This thesis analyses the defects of our legislation ^ our subsidy policies and countervailing measures. On the basis of it, I try to explore an approach to perfect our legislation, adjust our subsidy policies and strengthen our countervailing measures, so that we can find active count ermeasures on the problem of subsidy and anti-subsidy under the framework of WTO.