The Research On The Government Subsidy Under Agreement On Subsidies And Countervailing Measures Process

From April, 2004 to September, 2004, Canada initiated three anti-subsidy investigations to China. At the same time,U.S.A. and European Union have been already paying close attention to all kinds of subsidy policies and information of China. On March, 10, 2005, a member of American congress have made a proposal which demanded to revise U.S.A.'s current anti-subsidy law so as to survey the export subsidies of such developing countries as China, etc.. Compared with the behaviors of dumping by enterprises, subsidy is usually the government's behavior whose coverage is very extensive. If dumping is a kind of specific and micro-phenomenon, subsidy is often characterized by macro-phenomenon and extensiveness. Therefore, anti-subsidy investigation is more harmful than anti-dumping. The predominant view of the world is that subsidy is the a unfair means of competition, supported by the governments, which may enable the subsidized products to enjoy the unfair competitive advantage in the international market, damaging the order of international free trade. As a result, World Trade Organization has made strict regulations on subsidy and produced The Agreement on Subsidy and Countervailing Measures. Taking an overall view of the current subsidy policy of our country, it not only has violated the agreement, but also suffered the low efficiency, compared with the efficiency of subsidy policies in the main developed countries. The subsidy policy in China plays a role in helping the enterprises survive without many implications for promoting the development of the enterprises. It also wastes a large number of social resources and makes the state finance bear huge burden. So, our country needs to adjust the existing subsidy policy, on the promise of observing ASCM agreement, reduce the prohibitive subsidy gradually, and limit the quantity of the actionable subsidy, and increase the degree and range of unactionable subsidy. With improvement of anti-subsidy consciousness and strengthening of the anti-subsidy legislation, enterprises should strengthen their own creativity and the government should decrease its function in subsidy.