The Research On The Subsidy Policy Of China’s Aluminum Industry On The Base Of "SCM"

Aluminum is the second largest metal, whose production, consumption andstatues in the industry is second only to iron and steer. At the same time, as the bigcountry of production and export of aluminum products, China has great influences onthe global aluminum market and price. While as the important one of“two high onecapital”industries, state and local governments give preferential policies to it onaccount of its specificity. However, aluminum products are in at a disadvantagebecause of the multifarious policies and programs and some other reasons. So, there isa big sense and effect to avoiding the anti-subsidy investigation, but also making useof anti-subsidy policies better through the analysis of the policies and causes.This paper quoted a case in which the US launched anti-subsidy investigation inaluminum products from our country in2010, getting the importance of study on thereasons of aluminum industry why it suffered the anti-subsidy investigation. Thispaper figured out the reasons why our country has been frequently sufferedanti-subsidy investigations. First, subsidy policies which violated the requirements ofWTO do exist in our aluminum industry. Second, Some policies in our country do notviolate WTO requirements, but foreign countries abuse countervailing measuresaccording to our country’s policies, so we can say that foreign countries want toattack our country’s economic, political through countervailing measures. Third, theindustrial structure of aluminum industry in our country is not perfect, the exportstructure is unreasonable, the enterprise competitive ability is low, all of which willcause foreign anti-subsidy cases. Also, facing countervailing investigations, theconsciousness to protect itself of most enterprise is not enough, and negative response,making itself disadvantage at the anti-subsidy case.This article give three suggestions aiming at the three problems above.Firstly, toadjust the forms of number of subsidy policy in aluminum industry.Secondly, to speedup the aluminum industrial transformation and upgrading. Thirdly, to take initiative ofthe state,guild and enterprise. In order to assisting aluminum industry of our countrybetter, avoiding and coping the anti-subsidy investigation may happen in the futuretargeted at exporting aluminum products.