The Legal Issues In The Countervailing Case Of EU Against Chinese PV Products

Chinese photovoltaic products had an increasing share in the international market inrecent years, but while benefiting domestic solar enterprises, export of photovoltaic productsincurred multiple dilemmas amidst trade frictions. In2012the Europe Union launched ananti-dumping and anti-subsidy investigation of Chinese photovoltaic products, following theUnited States and India, in order to protect its own solar market in the scenario of theEurozone crisis and economic slump. That trade friction lasted over a year, saw twonegotiations, and came to temporary settlement in the form of price consent in December2013. That was the EU-China solar dispute, which draw the attention of millions. It involvedtwo legal issues, anti-dumping and anti-subsidy, but the author chose to solely deal withanti-subsidy in view of the research resources. A four-part analytical research is carried out onthe legal issues of anti-subsidy in the EU-China solar dispute.Part1summaries the anti-subsidy issue in the EU-China solar dispute. This part mainlydeals with the three aspects of case introduction, causes, and main legal issues involved. Theunderlying causes of the EU’s anti-subsidy against Chinese PV products is analyzed in detail,and the main legal issues is deduced from the legal focuses in the EU’s accusation againstChina.Part2is a main part, which analyzes the compliancy of the anti-subsidy issue in theEU-China solar dispute. This part first discusses the legal basis of anti-subsidy in theEU-China solar dispute, the analysis mainly based upon Concession on Subsidy andAnti-subsidy Measures and Agreement on China’s Entry of the WTO, both in the WTOframework. Next, measures pertaining to subsidy for Chinese PV products in the case isanalyzed, mainly from the legislation aspect. Last, the compliancy of some anti-subsidymeasures involved in the EU-China solar dispute is discussed in the WTO framework, theargument mainly based on regulations and identification items of subsidy in SCMConcession.Part3is another point, which analyzed the legal dilemma in China’s reaction toanti-subsidy in the EU-China solar dispute. This part analyzes China’s dilemma from deficitsin WTO’s regulation on anti-subsidy and from Article XX of the GATT, trying to clarifywhether Article XX of the GATT can be quoted as grounds of the plea, whose purpose is to avert the WTO’s blind spot of anti-subsidy of PV products.Part4puts forward the legal strategies of the Chinese reaction to the solar dispute. Theissue is discussed from the three levels of Chinese government, involved enterprises, andoccupational associations. To the Chinese government, the strategy is mainly practice anddevelopment of the trade regulations, and revision of domestic anti-subsidy measures toprepare for similar disputes. To involved enterprises and occupational associations, it ismainly active participation of the legal process, and facing the problem of solar trade dispute.