Research On EU And USA “Anti-dumping And Countervailing” To China's Influence To Bank JCK And Countermeasures

After the outbreak of the financial crisis in 2008, the world economy has been in recession. When shaping long-term economic policy, Europe, America and other developed countries all take economic recovery as their main objective.Developed countries led by America propose the revival of manufacturing, while a campaign of antidumping and countervailing duty against Chinese export enterprises just started. Europe, America and other countries launched frequent and extensive investigations of antidumping and countervailing duty against Chinese export enterprises, and there were more than 140 lawsuits against them in the United States Court of International Trade in 2010. In addition, the Investigations almost involved all the main export-oriented manufacturing in China, including iron and steel industry, telecommunications industry, energy industry and chemical industry. In most lawsuits of the Investigations, Chinese export enterprises were suspected of being granted government subsidy because of the use of export credit funds of the Export-Import Bank of China and hence imposed antidumping and countervailing duty. In other words, the Export-Import Bank of China has become the focus of trade protectionism of Europe and America, which caused direct and indirect loss. This paper focuses on how to control and cope with this kind of impact.Combining the situation and characteristics of the Bank, this paper analyzes how the Investigations influence it and cause loss. First, Europe, America and other countries imposed heavy antidumping and countervailing duty due to the Bank offering export credit as subsidy, which led to its clients being negative on the loans and default. Second, prepayment because of the Investigations had a impact on its financial arrangement and operation. Third, the Bank suffered from serious reputation damage on account of the Investigations at home and abroad.Fourth, export credit products of the Bank were frequently investigated, which hindered policy function of the Bank to expand overseas market. Fifth, the loss of clients and the damage of reputation are detrimental to the development of potential customers and future business.This article analyzes the influences of the countervailing investigation andanti-dumping investigation to Export-Import Bank of China(hereafter referred to as EIBC) from five aspects. Then reasons why EIBC is incorporated into the Investigation is probed emphatically according to The General Agreement on Tariffs and Trade 1994, Agreement on Subsidies and Countervailing Measures and the WTO dispute settlement mechanism. The EIBC is regarded as the public institution by the US Department of Commerce. Whether the export credit of EIBC has specificity and this service has vested interest for export enterprise.Furthermore, the discriminatory that whether China is non-market economies is existed in US and European countries. Due to these reasons above, export credit of EIBC is identified as prohibitive subsidy and its customers will have to pay the tax for countervailing and anti-dumping as a punishment.Finally, some corresponding measures are proposed for the Investigation in terms of the ongoing reform in policy Banks. To help Chinese exporters avoid the Investigation reasonably, the EIBC should gets rid of embarrassing situation as the public institution firstly, provides effective legal consultation service,repackages export credit and offers diversified loan business for export enterprises. It should also deepens the international cooperation, offers guiding to the export enterprise in industrial upgrading. At this point, countermeasures are offered for the countervailing investigation and anti-dumping investigation based on the policy Banks which have some reference to the reform of policy Banks in some degree.