| Since China joined in WTO, many Chinese domestic industries have faced against the severe impact. The automotive industry is one of the most impaired industries. Therefore, the Chinese government has formulated a series of industry policies to guard domestic automobile industry. Such as,"The Policy on Development of Automotive Industry","The Measures for the Administration of Importation of Automotive Parts and Components for Complete Vehicles"and"The Rules for Determining Whether Imported Automotive Parts and Components Constitute Complete Vehicles".Meanwhile, the US, EU and Canada consider that China's policy of Automobile industry, has violated China's obligations under the WTO. They also requested the DSB for a single panel to investigate the concerning Chinese customs policy of automobile parts. China believes that relevant government policies are legitimate acts of anti-circumvention, aims to prevent the loss of tariffs. 26 October 2006, the DSB established a single panel to examine the dispute, named"China's Measures Affecting Imports of Automobile Parts". The focuses of the dispute include: the principle of national treatment, the domestic quantitative restriction and the prohibited subsidies.After studying the legal claim of complaints, the author finds the complaint requests can be summarized as follow: the automobile industry polices have violated the principle of national treatment of WTO, the domestic content requirement of TRIMs Agreement and the prohibited subsidies of SCM Agreement. On the contrary, through the analyses of DSU and related cases, the author considers that China has not violated the obligations of WTO and all the above regulations.Finally, according to the case, the author has got the advice of adjusting China's relevant industries and implementing industry policies in the future. We have to utilize related WTO rules rationally, treat the ruling of WTO cautiously and improve domestic industries upgrading.
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