Study On Legal Problem Of China's Response Measures Against Foreign Country's "Antidumping And Countervailing" Investigations On Chinese Products

An "anti-dumping and countervailing" investigation is an investigation on a same kind of products of the same country/region at the same time, it is not an independent investigation, but the combination of anti-dumping investigation and countervailing investigation. While "anti-dumping and countervailing" investigation is not a simple sum of anti-dumping investigation and countervailing investigation, but a close combination of countervailing investigation and anti-dumping investigation on the proceeding.An anti-dumping investigation requires meeting certain percentage of claimants, and the existence of dumping, and the preliminary evidences of the resulting damages. Processing requirements of a countervailing investigation found a certain percentage of claimants, and the existence of subsidy, and preliminary evidences of the resulting damages, and also ask for the two governments did not reach a settlement after the consultation proceeding. Besides the requirements to meet an individual anti-dumping investigation and countervailing duty investigation above, an "anti-dumping and countervailing" investigation also requires the enterprises are subsidized by their governments, and the enterprises still dumping.Generally, an anti-dumping investigations procedure include:anti-dumping complaint; examination of the complaint; initiate an investigation, including an initial damage and dumping investigation, making a preliminary ruling, and ultimately damage and dumping investigation, making a final ruling; imposing anti-dumping duties; judicial review; administrative review; submitting to WTO dispute settlement body. Countervailing investigation procedures are similar with anti-dumping investigation, but in a countervailing investigation, there have a consultation proceeding before initiating an investigation, if no settlement is reached through this consultation proceeding, the investigation will continue go on. An "anti-dumping and countervailing" investigation procedure is the combination state of anti-dumping investigation procedure and countervailing investigation procedure in practice, and sometimes countervailing investigation procedures and anti-dumping investigation procedures will make same appropriate adjustments. So far, the United States, Canada and the European Union and other countries have initiated "anti-dumping and countervailing" investigations for over forty times on China's iron and steel, chemicals, plastics, paper products, electronics and aluminum and other products, and have imposed final "anti-dumping and countervailing" measures for over thirty times in the finished investigations, China is facing a very serious "anti-dumping and countervailing" investigation situation. These frequent "anti-dumping and countervailing" investigations have a huge impact on the export of Chinese products, the implementation of national policy, and other aspects.The "anti-dumping and countervailing investigations" that China have suffered show the following characteristics:sudden--initiated "anti-dumping and countervailing" investigations on Chinese products under the practice that not applying countervailing duty law to non-market economies; intensive--initiated many "anti-dumping and countervailing" investigations in a short term; targeted--the main sponsors is the United States, Canada, the products are mainly iron and steel industry; simultaneous--anti-dumping investigations and countervailing investigations are processing at the same time; difficult to respond--it's very hard to respond to anti-dumping investigation and countervailing investigation at the same time; intensivly involved anti-dumping investigations and countervailing investigations involved both corporates and government departments; bad results--the results are often to be imposed "anti-dumping and countervailing" measures.So frequent "anti-dumping and countervailing" investigations on Chinese products have their internal and external reasons, the internal reasons are mainly the existence of government subsidies, and subsidized companies'dumping; the external reasons are mainly the abuse of "anti-dumping and countervailing" investigations trade remedy measures by foreign countries. China's realistic response conditions are that China is a WTO member, a developing country, a transitional country to economy, and some countries don't recognize China's full market economy status.Scholars have given many recommendations on how to respond anti-dumping investigations, also some advises for countervailing investigations. Summarizing these recommendations and advises will be very useful for China to respond "antidumping and countervailing" investigations.Because of "antidumping and countervailing" investigation procedure is a practical form, therefore this essay give recommendations to our government, businesses and industry associations form the angle of "antidumping and countervailing" investigations procedures: before the investigation, in the investigation and after the investigation, which will be much more clear and specific. Before the investigation, we should perfect the relevant systems and develop coping strategies to avoid the subject of investigations. Firstly, our government should improve the systems relevance to trade remedies, including early warning systems, responding systems and improve our subsidy systems, seek recognition of China's market economy status, get a favorable situation through the WTO negotiations. Secondly, subsidized enterprises should regulate their conduct of operations to avoid dumping, diversify the export market to avoid damages. Thirdly, industry associations should strengthen corporate services and management.In the investigations, China should take advantage of a variety of substantive and procedural rights to actively responding to defense. Firstly, in the Stage of the initiation of investigations, our government, business and industry associations should promote every forces for not filing a case, once a case have filed, our government and business should receive the complaint papers and other relevant documents for informations as soon as possible, review whether the complaint meets the requirements, and get ready to respond the investigations. We shoud raise the feasibility, legality and rationality of that country's "antidumping and countervailing" investigations against China timely. Secondly, in the countervailing Consultations stage, after considering the pros and cons, our government should make full use of the consultation procedures, to propose consultation compromise, or to prepare time for respond. Thirdly, at the preliminary investigation stage of damages, our government, business and industry associations should initiate the strength of investigating countries, prompt no damages determination. Our government and enterprises should defense for the range of like products and domestic industry, reduce the scope of investigation. Industry associations should organize enterprises collectively responding the damage investigation. Government and enterprises should answer the questionnaires carefully, but also pay attention to avoid being identified damages, to avoid double counting the damage caused by the consequences of dumping and subsidies. Government and enterprises should make full use of such hearings and briefings procedures, bring up our point of view and evidences. Fourthly, in the preliminary investigation stage of dumping and subsidies, our government and enterprises should closely cooperate, coordinate and jointly cope with investigations, so that dumping and subsidy questionnaires can be answered coherence. Government and enterprises can apply for an extension in order to have sufficient time to reply the questionnaires. Government and enterprises should make full use of the rights and special treatments, and raise unfair practices of the investigation agencies timely. Fifthly, in the final stage of dumping and subsidies investigation, business and government should carefully study the verification framework, and actively prepare for the investigation. Sixthly, in the final investigation stage of damage, government and enterprises must seriously answer the questionnaires, make full use of questionnaires, hearings and briefings, and other opportunity to provide no damage, and no causal relationship between dumping/subsidies and damages defense. Government, business and industry associations should make full use of the "public interest terms" of the investigating country, so as to achieve the effect that not to impose anti-dumping duties and countervailing duties or reduce duties.After the investigation, our government can use WTO dispute settlement mechanism complain that country's unfair "anti-dumping and countervailing" measures. China's enterprises should use the judicial review system of the investigating countries to review the legitimacy of rulings made by its investigating authorities, use the administrative review system of investigating countries to urge its investigating authorities stopping imposing "anti-dumping and countervailing" duties as soon as possible. Business and industry associations can rationally use China's trade remedy system against unfair "anti-dumping and countervailing" measures.