On The Practise Of Countervalling Measures To China And The Reformation On Subsidy System Of China

Since the first anti-subsidy investigation initiated by Canada, china has become thecountry which encountered the biggest number of anti-subsidy investigations. Withthe external trade environment going worse, some industries have suffered hugelosses. As one of the major international trade remedy measures, anti-subsidy hasbeen thought not applying to non-market economy countries by the internationalcommunity. The foreign countries took anti-subsidy to china’s commodities showsthat they have reinterpretation the basic rules of countervailing, it will be veryimportant to research the legality of taking anti-subsidies measures to non-marketeconomy countries as china. Besides, it’s also important and benefit for china toreduce the foreign anti-subsidy investigations and gain a favorable internationaltrading environment, by researching the defect of subsidy system and theimprovement measures of subsidy system. The writer tries to do a serial of researcheson legitimacy of initiating anti-subsidy investigations and the improvements ofchina’s system about subsidy actions, by researching the history, by comparisons, byresearch the cases and analyze the actuality.Chapter one is about the background of topic chose, results of previous studies,research contents and methods.Chapter two is an over view of the general situation about the anti-subsidy thatchina has encountered. It contains the below parts: the introduction of the cases, thereason for foreign countries have changed from prefer to anti-dump to choose useanti-dump and anti-subsidy at the same time, the feature of anti-subsidy cases appliedto china, the affection of double-anti cases to china.Chapter three: analyzes the legality of the double-anti practice applied to china.By analyzing the law of anti-subsidy of the USA, Canada and EU, the cases of theUSA VS the non-market economy countries and the rules written in SCM Agreementof the WTO, the writer believes that no obstacle to initial anti-subsidy investigationand take measures to the non-market economy countries. But the double-antimeasures may result in dual succor.Chapter four: the author considers that as for a developing country the right ofsubsidies of china has lost much, and it will bear more responsibilities about subsidiesrestriction in the future by analyzing the documents that china has signed when chinaaccessed to the WTO. The author also thinks the pressure for China to improvesubsidy system is not only from abroad but also from domestic. By influence of thelong term planned economy, the methods of managing state-owned enterprises couldnot comfort with WTO perfectly， and the supervision on local governments’legislation power on subsidies and practice by central government is not in place, so it is not easy to supervise the subsidy practice of local governments.Chapter five: the author considers that China must persist in market economysystem on the basic of subsidy system reform. Try to construct a uniform andtransparent system relate to subsidies by keeping balance between domesticenterprises and complying with the WTO rules. The key point of system constructionis to cope with the power distribution between central and local governments, to buildan effective legislative oversight, judicial supervision and administrative supervisionsystems, a flexible and pragmatic subsidy policy is indispensable.