The Countervailing Situation Facing Our Country And Countermeasures

With America's investigating on China's copperplate paper, countervailing is becoming a new hotspot of trade frictions between China and the developed countries. Before that, the western countries did not apply countervailing acts to the non-market economy countries. However, as the west amending their domestic countervailing acts and China's market economy status being acknowledged by more and more countries, China is facing increasing threat from countervailing.The first part of this paper will explain the concept, characteristics and sorts of"subsidy"according to ASCM so that we can understand and observe the international rules. The second part will analyze the economic effects of subsidy and countervailing from the aspects of both traditional trade theory and strategic trade theory. The third part will research China's countervailing situation based on the international structure and the special treatment to the developing countries according to the ASCM. Under this background, the forth part will discuss why China provides the subsidies to those enterprises and why the western world investigates China about the countervailing. Accordingly the fifth part will give some suggestions to the government and the enterprises of China in the face of this new trade friction, about how to avoid countervailing lawsuit, how to deal with such investigations and what countervailing measures China should take to protect the domestic enterprises...