The Analysis Of Chinese "Famous Brand" Product’s Subsidy Measure Case Which Is Prosecuted By United States, Mexico And Etc

The Chinese external trade has been rapidly soaring and the trade surpluses havebeen ceaselessly enlarged since the reform and open up. Accordingly, variouscountries, for their own economic interest, strengthen their trade protection toproducts from China. Comparing to tariff protection measures, non-tariff protectionmeasures are exerted more, in which, anti-subsidy measures aimed at China have beenutilized since recent years. There is no anti-subsidy investigations against Chinabecause the countervailing investigation only against the market economy. Canadawhich conducted anti-subsidy researches to outdoor barbecue grill from China in2004set up itself as an example for other countries, afterwards, anti-subsidyresearches aimed at China increasingly and rapidly spreaded.Various countries, insuccession, acknowledge Chinese market economy position or amend internalanti-subsidy laws to facilitate anti-subsidy researches to China.China makes significant progress as a developing country, but many industriesare still in sprout period, so it is necessary to formulate government supportivepolicies for the infant industries based on fundamental national realities. Subsidies areequipped with rationality to some degree, but when entering WTO China had madecommitment to cancel the subsidy measures discrepant with WTO 《SCMAgreement》and did amended and cleared plentiful subsidy measure after enteringWTO, however, local government at all levels still make a great deal of exportsubsidy measure which turn hidden dangers for anti-subsidy researches aimed atChina. In face of anti-subsidy researches toward China, this article attempts to analyzethe bone of contention of anti-subsidy researches our country encounters in the formof cases, the involving legal issues and how China can perfect subsidy andanti-subsidy measures to address the anti-subsidy researches from other countries.The article is composed by introduction, main body and conclusion. The introductionmainly analyses the reason for selected topic and the purpose and significance of theresearch. The conclusion is the summing-up after the analysis of the cases and the analysis of anti-subsidy prospect. The main body is constituted by five parts:Part one is "cause of the case". That is Chinese "famous brand" product’s subsidymeasure case which is prosecuted by United States, Mexico and Etc.Part two is "case introduction". Firstly indicates the source and all parties of thecase, and then introduces the process of the entire case, and at last emphasizes thecategory of measures made by China governments involved.Part three is "focus of disputes and the differences between the two sides". Thepart is conducted around the focus of disputes of both parties. There are three bones ofcontention in the case, that is whether the measures which government give thecorporate bonuses, subsides could constitute export subsidies under the WTO "SCMAgreement"; whether government encouragement policy violate the relevantobligations in the WTO agreement; whether the local governments’ policy couldconstitute the measures in the "WTO agreement". This part makes detailedintroduction to the opinions of the focuses.Part four is "Theoretical research of the issues involved". Firstly recommends thedefinition and classification of subsidies mentioned in WTO 《SCM Agreement》,stressing the special character of subsidies and prohibited subsidies to facilitate thejudgment whether the subsidy really exists and then respectively analyses the legalissues of subsidies involved under 《SCM Agreement》 and 《AgricultureAgreement》.Part five is "several recommendations to perfect China’s subsidy andanti-subsidy". Firstly summarizes China’s current situation and existed issues ofsubsidy and anti-subsidy as mentioned in the cases. Subsidies, equipped withrationality to some degree, can not be completely denied according to the currentsituation of China. The part then presents several proposals to perfect the insufficientaspects in order that China is in position to subsidize and to cope with anti-subsidies.