The Eu Anti-subsidy Legislation And Application Problems In The Research

China and European Union are important trade partners for each other. However, the trade friction between the two countries happened frequently. On March4of2010, European Union initiated countervailing investigation against coated fine paper imported from China, which was the first time that European Union initiated countervailing investigation against Chinese products and was the first time it initiated anti-dumping and countervailing investigation against Chinese products at the same case. In such situation, it is necessary to study the Countervailing Law of European Union, especially research the problems in the application, combined with the focus problems in the Coated Fine Paper case.In the Coated Fine Paper case, there were a lot of disputes between European Union and China. In the substantive part of Countervailing Law, European Union and China had different opinions on subsidy, damage, causation and European Union’s interests, which included the following:in the aspect of affirmation of public body, European Union took national commercial banks as public bodies while China believed that they were self-operating organizations; in the aspect of the choosing of benchmark, European Union thought the national benchmark of China was twisted and could not reflect the normal market, so it chose the outside benchmark to calculate the amount of subsidies; European Union and China did not reach a consensus on the affirmation of specificity, damage and causation. In addition, China thought the countervailing measure of European Union this time caused the double remedy, especially when China is a NME. In the procedure part of Countervailing Law, European Union used a lot of available facts in the Coated Fine Paper case, thus it got conclusions which were quite unfavorable for China.China can deal with the countervailing measures of European Union effectively. According to the national Law of European Union, China can preserve its rights through the administrative review and justice relief. Moreover, China can appeal to WTO multilateral dispute settlement mechanism to preserve its interests. At the same time, China needs to complete the international trade warning system and the national subsidy policies to avoid being adopted countervailing measure.