The Study On The Application Of Alternative Out-of-country Benchmark By America’s Countervailing Against China

With the increasingly frequent anti-dumping and countervailing investigations of the United States against China,China has become the main target country for anti-subsidy investigations,and it has emerged as a prominent feature in a growing number of cases: the US Department of Commerce is calculating subsidies.When bench marking interests,more and more external benchmarks are used.The countervailing anti-subsidy external benchmarks have been used to solve the trade disputes between countries,thereby protecting the rights of various countries in the trading market.However,the unclear specifications of the external benchmarks themselves and the unreasonable application of some countries,they are directly caused the serious consequences of severely interfering with China’s economic autonomy and impeding China’s economic development.Therefore,we must strengthen the emphasis on anti-subsidy only through choosing the correct calculation basis so we can calculate the exact benefits of subsidies.The article is divided into three parts: introduction,text and conclusion.First of all,in the introduction part,the research background and significance of the countervailing external benchmarks and the current research status of the academic community on the United States countervailing foreign benchmarks against China and the research methods used in this paper the introduction part describes.Next,the text section specifies the original definition and real-world impact of the application of the external benchmark.Then through the "Agreement on Subsidies and Countervailing Measures","China’s Accession Protocol" and the provisions of the U.S.domestic law,the legal basis for the application of external benchmarks was elaborated,and the relevant legal basis with theory supporting for the external benchmark was given from the WTO level,China,and the United States.In the application of external benchmarks in the United States countervailing investigation against China,this paper illustrates several cases in detail from the government’s provision of loan subsidy benefits,goods or service subsidy benefits,and land-using rights subsidy benefits.Analysis and WTO consistency analysis pointed out that the US Department of Commerce’s loan interest rate,raw material price,and land-using rights price under the loan do not conform to WTO regulations.Finally,China’s Ministry of Commerce proposed legal countermeasures for the application of external benchmarks to address above issues.In the end,a conclusion is given.