The Research For Countervailing Influence To China And Countermeasures

Since reform and opening, always insisting on the basic national policy of opening up and seizing the opportunities of economic globalization, China’s foreign trade has made a rapid development. With the accelerated process of economic globalization and China’s deeper participation in economic globalization, China’s foreign trade is facing new challenges. That uneven development of the world economy and China’s maintaining high trade surplus all these years make the trading partners of China stay high alert to China, which leading to the potential rise of trade protectionism. Besides, other countries continue to initiate trade remedy measures to China’s export products, anti-dumping, countervailing and endless variety of new barriers rising now and then. In addition, the subprime mortgage crisis broke up in the United States in2008has gradually evolved into a global financial crisis, which has a serious impact on the world’s economy backwards and social disorder. In order to reduce the impact of the financial crisis on their own, most countries have taken measures like lowering taxes, reducing ratio, encouraging export and restricting import etc., which no doubt result in an impasse and worse trade situation. As a big trading nation, China naturally becomes the bull’s-eye of trade remedy measures. China international trade is facing serious challenge, in recent years, the trade friction is more frequent, especially countervailing’s impacts on China’s economy are more widespread. Since the foreign trade facing serious challenges, China must take measures to actively respond to international investigations and prosecutions.This article is divided into seven sections. First, the introduction part focus on the background and significance of the thesis, listing some present researches conducted by scholars at home and abroad on subsidies and countervailing, Chinese domestic scholars do more research on countervailing China suffered, they focus on analyzing the causes, effects and countermeasures about countervailing; foreign scholars mainly study Chinese government’s subsidy policies and measures, most of them think initiating countervailing investigations to China is feasible. The first part then points out my own innovation and inadequacies; Chapter2of the body, firstly elaborates some relevant theories, including the meanings of subsidy and countervailing; the sorts of subsidy and the prerequisites of countervailing, these parts place the theoretical basis. Chapter3mainly uses the latest data and information on Chinese current countervailing situation, firstly overall summarize the severe situation that China faces, and sum up the characteristics; and then analyzes the situation from four countries one by one, including the most frequent initiations members such as the United States, Canada, the EU and Australia. Chapter4concentrates on discussing the reasons for China’s voluminous countervailing investigations from both inside and outside; the internal reasons mainly contain Chinese unreasonable subsidy policies; some export products lack of competitiveness; the dispute about China’s market economy status and most export enterprises’ineffective respondent etc.; the external causes mainly attribute to the influence of International Finance Crisis; the growing trade balance; some countries’ political purposes and so on. Chapter5is divided into two sections. This part analyzes the effect of countervailing investigation on China from two aspects, including economy and politics; the effects on economy including impeding the upgrading of an industrial structure, leading to enterprise loss, worsening China’s international trade environment, causing Renminbi suffering the pressure of revaluation; as to the political influence, it mainly refer to our government macro regulation policies may be restrained. Chapter6eyes on discussing the current countermeasures China government should take from three aspects, including the government, industry associations and enterprises; the government should normalize it’s subsidy measures and policies, fighting for China’s market economy status, taking full advantage of the special treatment for the developing country and WTO dispute settlement procedure, adjusting export strategy and so on; industry associations may set up countervailing alarm mechanisms, cooperating with government and enterprises closely, strengthening international communication and offering necessary help for enterprises; enterprises themselves should change their attitude to countervailing, not only defense positively, but also improve products’ international competitive power. Finally, the last chapter draws the conclusions based on the above analysis, the reasons leading to countervailing are complicated, the way to deal with this problem is cooperation among related parts, only in this way can the world economy develop steadily and peacefully.