Research Of The Anti-subsidy Of Privatization Of State-owned Enterprise

Privatization means the transformation of the enterprise’s ownership. It is different from the reform of state-owned enterprise in China,but privatization is also the important content in the reform of chinese state-owned enterprise.How to apply the definition of a subsidy in a countervailing duty investigation when a privatized entity,which no longer receives a subsidy,did receive a subsidy after it was privatized.In recent years, international trade has grown rapidly and the privatization of state-owned enterprises in the anti-subsidy has become the focus of the trade controversies. The benefit of subsidy defines a key constituent element under SCM Agreement with which government action may fall under the category of subsidy.WTO rules have no clear guidance on it.So for resolving it we have to turn to the WTO cases. This article will focus on the United States Countervailing Measures Case. Finally look for some valuable guidline for our countervailing duties practice.The thesis contains five parts.The first and second part introduces the main definitions related to this thesis which includes some basic concepts about Privatization of state-owned enterprise, subsidies,countervailing measures.The third part analisis the benefit of subsidy,including statement of the determination of benefit in subsidy, The issue of whether privatization extinguishes a prior subsidy is once again raised.It focuses on the analysis of reports by Unites states and WTO panel abou the effect of privatization on subsidy,through which the panel point out how the United States methodologies violate the Agreement of Subsidies and Countervailing Measures. After that the writer makes a comment on the argument of United States and European Community.The fifth part outlines the administration of subsidies and countervailing measures for China as a non-marketing economics country points out the valuable suggestion shown in the analysis of the paper.