An Analysis Of Us-china Countervailing Legal Issue

According to the development of American law, the application of Countervailing Law to"Non-Market Economy"experienced a long process. US does not admit China's statue of"Market Economy", instead it takes frequent investigation on countervailing. Are there any legal basis of doing so in practice and Law? How does China face the stern problem of being investigated? The paper tries to solve the problems.In GATT and WTO texts, there is no clear definition of"Non-Market Economy". Although SCM Agreement referred to"Transformation into Market Economy", the term does not equal to NME. So the application of Countervailing to NME lacks legal basis. At the beginning of joining WTO, considering solving the difficult situation of multilateral trade system and the overview of Chinese economy, as well as the regulation of GATT and WTO agreement 16, China accepted the condition of joining WTO in the NEM status. It accelerated the process of Negotiation while also buried the risk of facing with countervailing for China. Now China is facing with plenty of investigation and U.S. becomes the leading country which takes the most frequent investigation. Practically, since the"K CO"Case, the Principle of Non-application of Countervailing Law to NEM influenced US for a long time till the LASKO Case, which began the application of MOI method. In the case of Coated Free sheet paper, the topic of applying Countervailing Law to China has become a hot one. By the study of US law, neither legal practice nor written law has the rule of applying Countervailing Law to NEM, but it has the tendency of making new law. Through the analysis of possible methods of getting rid of legal barriers, that US admit China's Market Status or overturn the previous case seems impossible. The most possible way is making laws by the congress. Considering with the basic situation of China, there are still a lot of subsidies and the system will influence for a long time. We should realize the importance of countervailing and make efforts in getting the admitting of marketing status while taking measures to self-regulate. Also we should make full use of multilateral system and taking the anti-countervailing measures to defend our interests.