Alternative State System, Anti-dumping

Anti-dumping measure is permitted by WTO, it is also recognized as a legal means to maintain fair trade and protect domestic industry security by most countries. However, with the liberalization level of international trade rising recent years, competition among enterprises behaved more directly, in many countries the tendencies of abuse anti-dumping as trade protectionist are becoming evident increasingly, gradually it is used as a tool to drive foreign competitors out of the domestic market.According to the Western anti-dumping traditional theory, products of one country are introduced into the commerce of another country at less than the normal value of the products is dumping , Article VI of the GATT provision prescribe the three methods to determine the normal value. However, the three methods are only applicable to determine normal value under market mechanism circumstances, they can't applied to the non-market economy countries. Furthermore, EU,U.S., and other countries introduced their own market economy standards, as well as the so-called "subrogate country" and "analog country" systems to calculate the normal value of export products from non-market economy countries. EU and U.S. has not recognized China's non-market economy status for a long time, in China's accession to the WTO, Protocol Article 15 also promised that Chinese Government allow all WTO members will continue to regard China as"non-market economy"country in anti-dumping measure by the year 2015. Therefore, European and American countries are frequently used the"subrogate price"to determine normal value, and judge the existence of dumping from our enterprises, which is the primary reason our country enterprise suffered the anti-dumping measure repeatedly.This paper is take the "subrogate country" system which EU and U.S. resort to China as the object of study, has analyzed the background and legislative basis of the system, compared the content and the operating feature between developed areas like EU and U.S. in this problem, at the same time this paper has thoroughly discussed the application premise of "subrogate country" system---non-market economy status issue. In view of China's market economy status can not be completely solved in the future and summing up practical experience of the parties, the paper has proposed some corresponding measures.