The Study On The Impact Of The U.S.’s Countervailing To China

With the acquisition of China ’s market economy status in2016，anti-subsidyhas gradually become an important means of trade barriers. Meanwhile, in thebackground of low-carbon economy, the U.S. initiated a countervailing dutyinvestigation on China ’s new energy product, which lead to new features and trendsof anti-subsidy. This paper focus on the specific case of the U.S. solar photovoltaiccells countervailing, studying the impact, reasons and suggestion, providing areference for other Chinese export-oriented high-tech products whose productionmaterial and end market in the complainant state responding to countervailing.This article is under the framework of the economic effects, from a theoreticalpoint, studying the influence of the U.S. solar photovoltaic cells countervailing, theconclusion is: U.S. countervailing means has an impact on the overall level of benefitin China and the United States. On this basis, for the purpose of ascertaining thedirection of the impact on the level of benefits, from an intuitive point of view, thispaper used the specific data and the principle of trade effect to study the influence ofthis case, concluded that, countervailing measures taken by the U.S. on China’s solarphotovoltaic industry did not have a fatal impact, not much fluctuation in the totallevel of welfare in China. On the other hand, for the U.S. upstream suppliers ofcrystalline silicon and downstream PV installation companies has a negative impact,detracting from their level of benefits. Even for the U.S. PV manufacturers, thecountervailing also failed to play a protective role. In order to quantify and deepen therelationship between countervailing and related industries in China and the UnitedStates, on the basis of theoretical and intuitive analysis, this paper validated from anempirical point of view further, which drew the same conclusion as before: the U.S.countervailing means reduces the level of overall well-being of its own solarphotovoltaic industry chain, is not worth the candle.Based on impact analysis, This paper further explore the reasons of the U.S.countervailing. China ’s reasons: exporting large number of products to the U.S.before countervailing investigation, China ’s actionable subsidies create a pretext forthe U.S. countervailing. the U.S.’s reasons: the pressure of the election, hegemonism,seizing the commanding heights of the economy, rising to a "herding effect" againstChina. Finally, this paper made policy recommendations from government, industry,enterprise’s point of view. Government should regulate their subsidies behavior, strengthen the cooperation with the United States. The industry should establish anorderly Industry Association, set up the industry-warning mechanism, organizeenterprises to respond to countervailing. The enterprises should take the initiative toadjust the export strategy, develop the core technology, establish a complete industrialchain, improve the ability to respond to countervailing.