A Study On Subsidy Policy Of China 's Service Trade

Among various factors influencing China’s subsidies on trade in services, GATS (GeneralAgreements on Trade in Service, GATS) play a crucial role in the formulation andimplementation of policies,which has a lasting influence on the subsidies of regional agreement ontrade in services and other members.GATS just offers a descriptive statement of "trade-distortingsubsidies", instead of the clear definition and scope of application of subsidies on trade in services,which, as a result, leads to lesser effect.In addition, the "most-favored-nation treatment" and"national treatment" clause in GATS offers a powerful supplement to potency of GATS’ subsidiesand constitutes a normative frame of subsidies on trade in services together with the definition ofsubsidies.Though GATS’s influence on subsidies is born with imperfection, it has played an indelibleinfluence on regional agreement on trade in services. The Protocol on Trade in Services to theAustralia-New Zealand Closer Economic Relations Trade Agreement and The Europe Agreementare at higher levels than GATS on subsidies, and also exceeds China’s current free trade agreementin subsidy standard; Yet most FTAs including China’s FTA has a higher market access. Moreover,the GATS didn’t stay in the existing level of constraints and has carried out a positive explorationfor negotiations on trade in service, information exchange of subsidies and trade policy review,promoting for the establishment of the multilateral subsidy disciplines.Currently the United States is leading three negotiations for regional arrangements (TPP,TTIP, TiSA), as a possible result, the three Agreements of the negotiations may overturn theposition of GATS. To a certain extent, three Agreements are original from the structure andcontents of GATS, but it will be quiet smoothly to promote the negotiations,especially under thegreat economy and political influence of the United States.The members’ policy of subsidy is under the control of the GATS and regional tradeagreements and must comply with the articles of multilateral agreements. So it is necessary toanalyze the other members’ policies of subsidy, such as the United States, Japan,India and Brazil.Under the comprehensive effects of the above factors, the analysis of China’s policies of subsidyand the problems pave the way to China’s policy suggestions of subsidy on trade in service.