Research On Subsidies, Countervailing And Countermeasures For China

Since reforming and opening up, along with the stability and rapid of our country's economic growth, the economic strength of our country has been strengthened significantly. Especially since China entering the WTO, there has been an obvious upward trend in foreign trade export and there has been a substantial growth in trade surplus, which effectively promoted the development of the domestic economy. Meanwhile, the rapid development of foreign trade of China and huge trade surplus caused the friction in international trade. Especially in latest several years, the more and more export products of our country faced the countervailing investigations from other countries.Since the countervailing investigations launched by Canada against china in 2004, the United States has began to seek the application of countervailing measures against China's option through modifying the domestic countervailing law. Although our country is not affected by international countervailing clearly, however, as more and more countries determined the market economy status of China and the rise of trade protectionism, it is foreseeable that in the next few years, the countervailing to China will be the important means of trade containment by developed country following the anti-dumping. Therefore, governments and enterprises of our country should get prepared to response it. Our country should improve the market economy system, try to adjust the domestic unreasonable subsidy policy and strengthen the research and construction of countervailing laws and regulations to meet the requirement of WTO "Agreement on Subsidies and Countervailing". So it can safeguard national interest to the maximum extent.Firstly, the paper explains the international rules of Subsidies and Countervailing in WTO "Agreement on Subsidies and Countervailing Measures". Next, it sets forth the influence to a country's welfare from an economic point of view on subsidies-countervailing. Thirdly, the paper analyzes international situation and characteristics of countervailing our country faced and analyzes external and internal causes of foreign our country suffered. In the end, it put forward proposals and countermeasures to deal with countervailing.