Research On Legal Issues Of The Industrial Subsidy Policies In Pilot Free Trade Zones Of China

In recent years,the China’s industrial subsidy policies have been frequently investigated by European and American countries against subsidies and even accused to the World Trade Organization(WTO)dispute settlement mechanism.Among them,the pilot free trade zones,as an important measure for China to comprehensively deepen reform and expand opening up,should have a high-level liberalization and an environment with a fair competition for business.However,some of the industrial subsidy policies in the Pilot Free Trade Zone may violate the subsidy rules of the Agreement on Subsidies and Countervailing Measures("SCM Agreement")of WTO in terms of specific measures or have potential risks.In view of this,the risk of violation of industrial subsidies of China’s pilot free trade zones will make China at a disadvantage in the world’s multilateral trade.Therefore,the compliance between the industrial subsidy policies in the pilot free trade zones and the SCM Agreement has become a major issue in multilateral trade.How to based on the comparative advantage of theory,correctly understand the applicability of industrial subsidy policies in the pilot free trade zones,and reduce or eliminate international legal risks of industrial subsidy policies,will play a positive role in promoting free trade,fair competition,and also have a certain reference value on grasping the initiative in multilateral negotiations.Based on the subsidies rules of the “SCM Agreement”,this work takes the application of industry policies in the pilot free trade zones as the focus,explore and study the trade problems and potential legal risks existing in industry subsidy policies and regulations in the pilot free trade zones under the restriction of the SCM agreement.On this basis,this work puts forward solutions and perfect suggestions to avoid the legal risk.The specific content is as follows:Firstly,this paper summarizes China’s industrial subsidy policies,expounds the connotation,function and significance of industrial subsidy policies and regulations,puts forward the basic problems existing in China’s industrial subsidy policies and regulations,and summarizes the industrial subsidy policies in China’s pilot free trade zones according to the industrial concentration degree.After that,it analyzes the compliance of industrial subsidy policies in the pilot free trade zones under the “SCM Agreement”,mainly introduces the subsidy rules and significance of the “SCM Agreement”,and analyzes the compliance of the actionable subsidies and prohibitive subsidies according to the conditions for the identification of subsidies.Finally,based on the analysis of the existing or potential legal problems,the solving ideas are proposed to improve the application of policies and regulations in the pilot free trade zones.It mainly focuses on the basic principles of formulating industrial subsidy policies in pilot free trade zones,the introduction of supervision and competition mechanism,and controlling the intensity and scope of subsidies.Furthermore,we should weaken the specificity of subsidies,make reasonable use of litigable subsidies,and avoid conflicts with the SCM Agreement to the maximum extent.