Research On Foreign Anti-subsidy Towards China

Under the background of the prevalence of global trade protectionism, anti-subsidy is receiving more and more attention which is one of the three trade remedies under the framework of the World Trade Organization. Anti-subsidy has been frequently used ever since the outbreak of the global financial crisis of 2008. Foreign trade of China got over the challenges and rapid growth was registered since China joined the World Trade Organization. At the same time, China is also meeting many trade frictions. Besides anti-dumping and safeguard measures, anti-subsidy which is not suitable for “ non market economy countries” before has been adopted by our leading exporters in recent years, and more and more "double reverse" cases are appearing. Anti-subsidy measures are serious negative for China’s foreign trades which are repeatedly taken by foreigners, and our corresponding measures for that are not perfect right now. Thus, it is very significant to study the anti-subsidy action of foreigners.This paper analyzes the situation and the characteristics of the anti-subsidy that China has suffered before. China is currently the most serious countries who suffered anti-subsidy: the number of the anti-subsidy stays a high level, the scope of sponsor country and product categories are expanding, and there is an increasing number of "double reverse" cases. This paper also in-depth analyzes the causes of foreign anti-subsidy against China: there are many differences between the systems of our anti-subsidy legislation and “SCM Agreement”, many conflicts between our subsidy policy and WTO rules, the establishment of the "market economy" in China and massive trade surplus for many years. This paper studies the effects of anti-subsidy on China’s foreign trade. Anti-subsidy weakens the competitiveness of our products by suffering double discrimination of anti-dumping and anti-subsidy. At the same time, it also limits the use of economic regulation means of government. It also studies the relationship between anti-subsidy and China’s foreign trade with America whose anti-subsidy case against China is the most as the research object by using the method of regression analysis. The conclusion is anti-subsidy will hinder the development of China’s foreign trade. Finally, it puts forward the countermeasures and suggestions against anti-subsidy from government, industry association and enterprise three aspects, and provides a reference for China making effective and feasible corresponding measures. The government should constantly perfect our anti-subsidy legislation, adjusts our subsidy policy according to the “SCM Agreement”, strengthen the research and personnel training on anti-subsidy regulation, establish and perfect the early warning mechanism and corresponding measures of anti-subsidy. Enterprises should participate in the anti-subsidy defense and improve the competitiveness of their products; Industry associations should play fully the role of a communication bridge between government and enterprises, helping the government and enterprises collect anti-subsidy information.