The Motive Analysis Of China Anti-subsidy Measures

Due to Financial Crisis, lots of countries are still in the progress of economy recovering, so in this period, trade protectionism begins to play a role. One of the symptoms is that more and more countries begin to employ anti-subsidy measure which is a kind of necessary restrictive practice towards subsidy in purpose of ensuring healthy development of domestic economy, rules and regulations of faire competition or free development of international trade, including provisional measures and imposing anti-subsidy taxes. From its definition, Anti-subsidy is for ensuring domestic economy developing healthy and continuously or advancing free trade. But practically, it is always taken as a measure to protect trade, especially when western countries launch researches on China's Anti-subsidy practice. China does not only face the problems of exporting bottleneck, but also have the impact from lots of foreign products. One of the reasons is that the foreign products enjoy huge government subsidy. In this way, how we can use Anti-subsidy measures reasonably and legally is a tough problem to be solved immediately by Chinese government. However, China is not more familiar with Anti-subsidy practice and laws than Anti-dumping practice, so our government has to learn to use anti-subsidy practice wisely based on our national and economical situation other than take it as a weapon for revengeIt is the government who take the subsidy and anti-subsidy practice, it always lead to political friction which should not be ignored when we analyze anti-subsidy behaviors. From the recent cases, China is still the major country to be investigated, making us in passive and adverse situation. Anti-subsidy becomes a way for western countries to restrict China, but it will certainly change with economic development acceleration in China. Most domestic scholars analyze anti-subsidy in perspective of economy and law which partially neglects integrated political, economic and social factors but focus on suggestions and practice when facing the anti-subsidy investigation. This paper is based on theory of political economics, through comparing the cases happened between China and U.S.A, from the perspective of China as the initiator of anti-subsidy practice and then deliver the suggestions how China should utilize anti-subsidy practice.Firstly, through collecting and analyzing anti-subsidy related information and statistics in western countries especially in U.S.A, Canada and EU, we indicate the trend of anti-subsidy practice is showing upwards tendency and more and more countries will misuse it. The following third chapter is about theory, stating the points from different schools in economics and political economics which are also the foundation of the following case studying. In Chapter 4, by selecting and studying some typical cases, we analyze the political and economic and even more fundamental reasons behind anti-subsidy practice in China and U.S. Chapter 5 focuses on movements of political, economical and social factors. We believe it's not wise to take anti-subsidy measures as a way to revenge and launch trade war, but only from our real national situation and basing on political, economic and social benefits to utilize anti-subsidy practice is the best way to protect our own benefits.