The Analysis On Transitional Product-Specific Safeguard Mechanism Against China And Countermeasures

Transitional Product-Specific Safeguard Mechanism against China (hereafter refers to as TPSSM) is a special mechanism established when China joined World Trade Organization. It involves politics, economic and legal factors.The text is divided into three parts, and they are introduction, body and conclusion.In the introduction, the writer introduces the original reason on writing the paper. Cases and investigation about safeguard measures against China were prevailing since China joined World Trade Organization. US tires safeguard case has relationship with the influence of economic globalization and financial crisis as well as the political connections between different countries. So, understand and research on TPSSM and seek the proper countermeasures from political, economical and legal perspective in order to cope with new situation on global financial crisis is the purpose of research and writing. Meanwhile, in order to pave the way for the latter discussion, the writer makes basic definition and introduction to the research theme by arguing the design purpose and classification of safeguard.The body is divided into three chapters.Chapter One is the summary on TPSSM. The paper introduces the origin and development of TPSSM. When Japan and some East European socialism countries joined World Trade Organization, similar selective safeguard mechanism were imposed on them. However, the TPSSM has specific characteristics. It is fraudulent and departs from non-discrimination principle of World Trade Organization, which leads to the non-equivalence on rights and obligations between China and other members of World Trade Organization. Such TPSSM was established has deeply reasons and backgrounds. The leading powers exerted pressure on China by political, trade protection methods and negotiation tricks.In Chapter Two, the writer analyzes the criterion on TPSSM against China, including entity and procedure essential conditions. Explain how to operate the system in details particularly and present problems in practice at the same time. In the part of entity essential condition, analyze two conditions of implementing TPSSM: market disruption and significant trade diversion. Identify market disruption involves many factors ,such as imports increasing rapidly, domestic industry, material injury and material injury threat, causality and objective judgment criteria. Significant trade diversion is based on the market disruption and the criterion of determining is much lower. In the part of procedure essential condition, the writer introduces the common procedure to adopt TPSSM at first, and then discuss the problems on implement deadline, pattern, restriction and negotiation and revenge and other obligations. Although the procedure regulations are relatively fair comparing with entity condition, this apparent equity can not hide the inequality essence. In order to further explain TPSSM application in a specific case, the latest US tires safeguard's investigation and the implementation process are introduced. Based on the above-mentioned chapter discussed, the writer presents the inconsistencies between the TPSSM and US Article 421 on entity and procedure essence condition.In Chapter Three, the author argues that Chinese countermeasures to response TPSSM. Based on the analysis above, the origin reason and practice of TPSSM can not be separated from the political, economic and legal multiple impacts. Hence, the countermeasures to response TPSSM should also be taken into consideration from the political, economic and legal point of view. In the political area, enhance intergovernmental communication, promote bilateral negotiations actively and speed up the process of regional integration to resolve the issue on China's market economy status. Chinese Government should improve the relevant institutions setting and train specialized personnel, meanwhile, makes full use of consultation and revenge mechanisms and other trade remedy methods. In economic terms, we should promote economic reform to establish a market economy status, including decision-making mechanisms of the state-owned enterprises reform and the reform of state trading system. Furthermore, we should adjust the industrial structure, and encourage the development of relevant tertiary industry to eliminate production expansion caused by the irrational industrial structure and abnormal development. Pay attention to the functions of trade associations to establish early warning mechanism, and promote enterprises export self-discipline and positive response to litigation.From the legal view, especially in the area of the international law, it is benefit to explain the controversial issue by making full use of the principle of treaty interpretation. Proactively use of WTO dispute settlement mechanism to solve the problem on TPSSM. Specifically speaking, there are three ways: Firstly, use panel's legislative interpretation to clarify uncertainties in China's WTO accession-related documents. Secondly, directly appeal to the inconsistencies between WTO members' domestic legislation and the norm established by China's WTO accession-related documents. The last but not least, submit the procedure problems in the process of TPSSM investigation to panel.The last part is the conclusion of the article. The conclusion is the summary and comb on above description and analysis. TPSSM is a selective safeguard that has negative influence on China, which departs from the WTO's value target essentially. Its formation involves multiple reasons including political, economic and legal aspects. The identification threshold of market disruption is greatly reduced; meanwhile, the mechanism creates an alienated conception of significant trade diversion to protect trade. In the new situation of globalization and financial crises, China should adopt comprehensive political, economic and legal to cope with the impact of the TPSSM.