Exploring The "substitute Country" System In China's Anti-dumping Under The WTO Rules

The Surrogate Country System is a special calculation method used to calculate the “normal value” of export products.It is widely applied to the anti-dumping investigation practice against “non-market economy” countries.The existence of this system has certain rationality.As proven by various countries,it has played a positive role in maintaining fair international trade,standardizing international trade order,and providing reasonable protection for domestic industries.Its legitimacy is also confirmed by the rules of WTO.However,with the development level of world trade rising recent years,trade competition among countries has become increasingly fierce,and the rising liberalization level has not formed a more equitable and reasonable competitive environment.Many countries protect their own trade interest in the name of anti-dumping measures.The Surrogate Country System is used as a tool to drive foreign competitors and runs counter to the original intention of establishing the system.China's export enterprises have been identified existing dumping measures and receiving high anti-dumping taxes by exporting agencies.The main reason is that China's major trading partner country applies The Surrogate Country System to China.This paper has analyzed the background and legislative basis of the Surrogate Country System,at the same time this paper has made a deeply discussion about the application premise of the Surrogate Country System——Non-Market Economy Status issue.We derive the connotation and operational characteristics of the Surrogate Country System for anti-dumping in China by analyzing and summarizing the application of the Surrogate Country System in major developed countries.This not only confirms the rationality of the Surrogate Country System itself,but also states that there are illegal and unreasonable areas during its application process.And then put forward suggestions for Chinese government,enterprises and legislation on the basis of summing up the practical experiences of all parties,which is through analyzing the feature and essence of the Surrogate Country System.It is of great significance to help China properly respond to the Surrogate Country System in anti-dumping after the transition period.