Research On Characteristics And Countermeasures Of Foreign Anti-subsidy Against China

Since the entry into WTO on Oct.11th, the social economy has been growing rapidly together with the remarkable export growth and the continual surplus of trade. Meanwhile, the severe competition in the international market brings in the trade conflict successively. More and more countries initiate the trade remedy measures. The anti-subsidy, which is among the three measures, is attached more importance than ever before. Especially on the condition that the rapid progress can not be curbed by the anti-dumping measure, the anti-subsidy is another one for them to suppress the good Chinese origin. Because of the inferior situation of the anti-subsidy to the anti-dumping, the domestic research and analysis are rare.The content of this paper is the analysis of the present situation, characteristics and the coping strategy. The first is the theory introduction of the anti-subsidy home and abroad. The prevalence of the research references includes the traditional trade theory and the strategic trade theory, which are used to analyze the quality and the practicability. At the same time, the domestic scholars lean to do the research on the SCM of the WTO and the effect analysis of the anti-subsidy. The second is the sketch of the anti-subsidy law worldwide. The SCM of the WTO is the basis of the anti-subsidy law for national formation. The SCM is a specific agreement on the definition, classification and the relief measure. The paper also introduces the substantive rules on the anti-subsidy of America, Canada and EU. Thirdly, the research also explains the present situation and characteristics. According to the statistics, the number of the anti-subsidy against China is second only to India. The anti-subsidy characteristics are concluded by the analysis of the America anti-subsidy against China, which is the top 1 country in the anti-subsidy cases against China. The Characteristics are as followings. The industries involved include the metal material, finished products, paper products, chemical products and electromechanical products. The main initiating countries are developed countries, such as America, Canada and EU. The rate of the countervailing duty is lower than that of the anti-dumping. The investigation is for the anti-subsidy and anti-dumping simultaneously.The fourth part is the reason analysis of the anti-subsidy home and abroad. The reasons include the trade surplus, the confirmation of the market economy, the perfection of the concerning laws of the foreign countries and the imperfection of our domestic legislation and the factor of the enterprises (such as the pleading ability). The fifth part is the effect analysis in our domestic market causing by the anti-subsidy against China. The effect analysis of the subsidy and anti-subsidy are concluded into two aspects, namely the economy development and the welfare. The conclusion is that the subsidy boosts the increase of the price, consumption and the export volume. The anti-subsidy against China suppresses the export, while the countervailing duty is a subsidy for the initiating country in disguised form. It has the negative influence on the competitive strength and the politics as well.The final part is the strategy introduction on the basis of the reason analysis. It includes the lagging of the information gallering, the dificiency of the subsidy questionaire and the enterprise's lack of the self-protection. It is a need to sort out the strategies basing on the analysis of the situation and reason. The thought transformation of the government is changing the participation to providing the consultation. The adjustment of the policy includes the cancelling of the prohibited subsidy, regulating of the actionable subsidy and enlarging the utilization of the non-actionable subsidy. The early warning system is essencial as well. The guild has the responsibility to assisit the improvement of the early warning system and the coordination of the enterprise behavior. The enterprises also have to increase the investment for the R&D, to pay more attention to the basic research, to adjust the exporting strategy of taking the quality as the comparative advantage, to expand the international market and so on. Finally, the perfection of the legislation is one strategy as well. Basing on the experience and lessons in the trade development, the concerning department have to set up a perfect and rational law system.The innovative standpoint is the systematic introduction of the foreign subsidy legislation and the measures taking by our country. It also introduce the importance of the guild through the angle of the government, enterprise, guild and the legislation. The deficiency of my paper is lacking of the survey and interview material, which is leading to the inadequate arguement. Besides, the foreign research on the anti-subsidy against China has no clear statistic on the actual loss of China, which can not strongly explain the issue clearly.