Research On The Types And Structure Of China's Subsidy Program In The Countervailing Cases Between United States And China

After the global economic crisis in 2008,the trade remedy measures become more and more intense especially the anti dumping and countervailing investigations.Since Canada first initiated countervailing investigations in 2004,China and the United States has become the world's largest country that accepted the countervailing investigations and initiated countervailing investigations respectively.The number of the investigations that they accepted and initiated were 90 and 156 respectively.Among them,the number of countervailing cases that the United States initiated to china and issued the final reports were 45,accounted for half of the investigation of the total number of cases.China and the United States countervailing issue has become the trade friction and it has a significant impact on China's foreign economic development.According to the U.S.anti subsidy cases in the final report,this paper analyzes the Chinese subsidy program identified in the United States Comprehensively.Based on WTO"SCM Agreement",this paper classifies the subsidies for all projects,combined with the countervailing cases between china and United States,results of WTO dispute cases,according to the identification of subsidies for the project legitimacy,combing the subsidy program structure,the subsidy program is divided into three categories:does not involve Adverse facts available(AFA)project,involve the dispute focus project and AFA and the focus of the dispute is not involved in the project.Through the analysis of the three types of projects,this paper puts forward some suggestions on how to deal with the AFA rules and China's need to improve the subsidy program.Provide policy recommendations for the Chinese government to change the functions of the government,to provide a reasonable plan for subsidy policy.This paper is divided into five parts.The introduction part mainly elaborates the purpose and significance of this paper,and puts forward the innovation points of this paper based on the review of related research.In the second part,it introduces the case of global countervailing cases,analyzes the number and annual distribution of cases in the top five economies,and analyzes the case of the United States' countervailing investigation.The third part into the focus of this article,analysis the type of China's countervailing cases in subsidies for the project,from Preferential loans,Tax exemption and reduction,Provision of Goods,Services,electricity and land for Less Than Adequate Remuneration(LTAR),Government grants and Local subsidy project meaning of subsidies for the project,involved in the case,rate and whether to recognize for AFA rules were analyzed.This paper is divided into five parts.The introduction part mainly elaborates the purpose and significance of this paper,and puts forward the innovation points of this paper based on the review of related research.In the second part,it introduces the global countervailing cases,analyzes the number,annual distribution of cases in the top five economies and the case of the United States' countervailing investigation.The third part into the focus of this article,analysis the type of subsidy program in China's countervailing cases,analysis the meaning of subsidy program,related cases,tax rate and whether to recognize for AFA rules from Preferential loans,Tax exemption and reduction,Provision of Goods,Services,electricity and land for Less Than Adequate Remuneration(LTAR),Government grants and Local subsidy project.The fourth part identify the subsidies for the project legitimacy,divide the subsidy program into three categories:does not involve Adverse facts available(AFA)project,involve the dispute focus project and AFA and the focus of the dispute is not involved in the project,review the three types of subsidies and the basis for the identification of the project.In the fifth part,based on the problems existing in the three kinds of subsidy programs,this paper puts forward some suggestions on how to deal with the AFA rules and China's need to improve the subsidy program.On the basis of the above research,this paper argues that the main reason for countervailing investigations with high tax rates from two aspects:countervailing rules in the United States and China's subsidy policy.American countervailing rules resulted from the unreasonable America decision that China's subsidy project of illegal,including applicable AFA rules and focus of project in WTO dispute cases.In addition,China's special subsidy policy in the tax policy,local government subsidies and specific regional subsidy policy also makes it easy to identify as the existence of subsidies.Therefore,this paper based on the study of the above issues for the application of the AFA rules of the United States and China,provide policy recommendations for the Chinese government to change the functions of the government,provide a reasonable plan for subsidy policy.