Research On The Legal Issues Of RMB Exchange Rate Subsidy Under WTO Framework

For more than a decade,western politicians and academics,led by the us,have used the WTO's subsidy rules to accuse Beijing of subsidising Chinese exporters by keeping the renminbi artificially low.With the outbreak of the trade war between China and the United States,the RMB exchange rate went down again.The us department of commerce issued a notice in May 2019 that it would revise the current anti-subsidy administrative rules and regulations,so as to determine that the exchange rate depreciation caused by the government's actions is a special subsidy,and the anti-subsidy administrative rules and regulations could be used to take measures against such actions.The U.S.Treasury Department designated China a "currency manipulator" in August 2019 as the renminbi continued to depreciate against the dollar following the outbreak of the trade war between China and the United States,drawing attention at home and abroad.The most immediate impact of the us designation of China as a "currency manipulator" is the likely start of negotiations between China and the IMF,in which an undervalued renminbi could be considered a subsidy.Given the current development of china-us trade,it is difficult to ensure that the us side will stop accusing China of RMB exchange rate subsidy.Therefore,it is necessary for us to deeply study this important issue and make full preparations for the us to accuse the RMB exchange rate of subsidy again in the future.This article is divided into four parts,the first part mainly in troduces the currency subsidies and subsidies of RMB exchange rate theory,including the overview of exchange rate and the subsidies and the subsidy of RMB exchange rate theory of formation and development,introduced the United States recognized the yuan currency manipulation and underestimate the progress and on currency subsidies theory of act of congress.The second part mainly discusses the jurisdiction conflict and coordination of RMB exchange rate subsidy.This paper first introduces the WTO's jurisdiction over the exchange rate subsidy issue,then introduces the IMF's jurisdiction over the exchange rate subsidy issue,analyzes from two aspects: entity obligation and procedural obligation,and finally givesSuggestions and views on how to coordinate the jurisdiction over the exchange rate issue between WTO and IMF.The third part mainly argues that the undervalued RMB exchange rate does not constitute a subsidy.This paper first introduces the general situation that RMB exchange rate is artificially undervalued,and then,starting from the WTO framework,analyzes the main requirements of subsidies,financial support requirements,the benefit requirements of the grant of subsidies and the special requirements,and concludes that RMB exchange rate undervaluation does not constitute subsidies under the WTO framework.The fourth part mainly discusses how to deal with the "RMB exchange rate subsidy theory".China's exchange rate system is under great pressure in the face of the western countries' aggressive accusations against the RMB and the various legal measures they plan to take.In the face of western countries' accusations that China's RMB exchange rate constitutes a subsidy,we should not only stick to the bottom line of currency sovereignty,but also take corresponding legal policies to defend and counter it,and meanwhile improve China's RMB exchange rate system to safeguard China's legitimate rights and interests.