On Alternative State System

Surrogate Country System is a special system used by western countries to judge whether the" countries of non-market economy" dump their export products and determine the dumping profit margin. And the western countries always try to find a Surrogate Country in which the domestic price is much higher to confirm the truth of dumping. China really suffered the most in the anti-dumping cases both in numbers and the anti-dumping tax. Therefore the study on the Surrogate Country System is of great significance to the antidumping discrimination from the west.This paper comprises of four chapters, among which, the first chapter begins from the definition of Surrogate Country System, and emphasizes the formation background as well as the international law basis of both the general and specific one under the WTO of Surrogate Country System.The second chapter focuses on the main content and the legislation practice of developed countries of Surrogate Country System, which initially stipulated in the law of United States, and introduced to the GATT/WTO system afterwards. And the key provisions were still reflected in the content of the main country's domestic legislation. The author will conduct a presentation of the main content of Surrogate Country System from the "definition of NME countries" to the "choosing of Surrogate Country" and the "normal value calculation" progressively to introduce the legislation and practice about Surrogate Country System of developed countries since it is the main procedures of application hereto.The third chapter is about the legal analysis of Surrogate Country System, which contains three parts. The first is the legal principle of Surrogate Country System; the second one is about the analysis based on the principle of Predictability, transparency and fairness respectively; while the third part, which is of analysis from the point view of law and economics, illustrates the various unreasonableness of Surrogate Country System.Part four is about the countermeasures of China to the Surrogate Country System, Which can be divided into three parts. They are: reform of domestic legislation; the function of WTO dispute settlement mechanism and anti-dumping systems of government & enterprises respectively. The reform of domestic legislation covers: anti-dumping regulations, accounting system, as well as labor law. And the WTO dispute settlement mechanism can be used for the settlement of disputed between China and other WTO members.Last chapter is the conclusion, which is the summary of the whole paper, and once again emphasizes the significance of countermeasures to the Surrogate Country System under the new situation.