| On Nov. 1, 2001, Mr. Jiang Zemin, President of People's Republic of China, ratified Protocol on the Accession of the People's Republic of China according to the decision of the 17th meeting of the 9th P.R.C national peoples congress standing committee, which signed in Doha by Mr. Shi Guang sheng as the plenipotentiary of the country on nov.11, 2001, and one day before, Accession of the People's Republic of China (decision of10 NOV.2001) was approved at the ministerial conference in Doha. The ratification of the above two protocols marks China's official accession to World Trade Organization (here referred as WTO ). Since then, China began to exercise rights and perform duties as the formal member of WTO. In the meanwhile, Chinese government's wisdom and strategy faced a rigorous test of a new problem, that is, how to exercise rights and perform duties in the most efficient and legal way.Today, China is the rarity among rarities as she is developing rapidly under the depressing atmosphere of the global economy. China's total amount of foreign trade has climbed to no.6 in the world, and of course trade friction will increase in accordance with such rise. Being a formal member of WTO cannot reduce tradefriction, on the contrary, it will bring more severe outside competing environment in some fields. On the one hand, antidumping, safeguard measures, technical barriers and countervailing measures against China's export products are unavoidable when taking China's present industry structure into consideration and regarding the fact that China will continuously be regarded as non-market economy country in 15 years after the entrance into WTO. On the other hand, dealing with those import products with subsidies, our enterprises must apply antidumping, countervailing, safeguard measures to protect the normal order, the safe order and the development environment of China's industry. Therefore, China's government must transform the government functions, that is, it must attach importance to adjust and control China's economy by applying legal methods in accordance with international law and WTO rules.The increase of trade friction and the accession to WTO indicates that China's economy has been put in the international economy system; in the meanwhile, it has also set higher demands on China's government as to how to shift its functions, how to adapt itself to new situations, and in public fiscal framework, how to build China's industry supporting and developing systems, especially industry fiscal subsidy system, by applying WTO subsidy rules. Atpresent, in addition to adjusting traditional administrative governing and supervising methods towards country fiscal, controlling and regulating country economy in accordance with WTO subsidy rules, international laws and international practices, China economy and trade commissions of different levels should also establish effective income supporting and safeguarding system in some important export areas aiming at the fact that domestic industry there has suffered great economic loss, people's income sources there have been cut off, social safety and stability there has been threatened under other WTO contracting parties' enforcement of countervailing or countermeasures against China; China's economy and trade commissions of different levels should also adopt countervailing measures against those import products with subsidies and establish countervailing political and legal systems.This thesis consists of eight parts and thirty-one chapters, Part One with four chapters, except Part five and seven with two chapters, the others with three chapters respectively. The content and structure are summarized as following.Part one, Opening Economy and Financial SubsidyChapter one, introduces subsidy conception, constituents, categories and concerning upper reach subsidy, describes the connection and difference of subsidies in three kinds, which is, financial contributions, income support and price support, and then analyzes three items of the subsidy constitutes under WTO, demonstrates the differences and the connects between the specific subsidy and general subsidy, in the meanwhile, deals with upper reach subsidies ,in the point of industrial relevance ,which is significant to determine whether there is subsidy being in the products.Chapter two, Opening Economy and financial subsidy, after clarifying the conception of market, market economy, opening economy, and the character of and requirement for opening economy to develop with international economy progress, it disserts that the functions of financial subsidy under WTO subsidy depends on the market mechanism, then enumerates diverse market structures within international market economy system and correspondingrequirements provided in WTO subsidy rules for these different structure, along with corresponding criteria and conditions respectively. Market, not only the necessary element for public finance but the foundation for financial subsidy, is the initial start to analyze financial subsidy and anti-subsidy. The article divides market into four different sections, which is product, service, monetary and capital by the distinction of material market and immaterial market in order to clarify the division between subsidies to manufacture and service later in the article. In the end, highlighting effects of technology, especially the latest high-tech, on industry and economy development, it also discusses the character and general course of opening economy progress to prepare for the later proposal about how to improve the expenditure structure of financial subsidy and how to establish Chinese subsidy strategy.Chapter three, the Functions of the Government and the Foundation of Subsidy, discusses the foundations and conditions of the subsidy being in, from the points of the division between the government and market and the functions of the government. And then demonstrates the different economic qualities and legal characters of the financial subsidy under different circumstances, thereby the financial subsidy be divided into three parts according to its use, first one, is the subsidy being used in the field of efficient markets, the second fall into the scope of the fail market, and the others being out of the markets, which aims to develop the market and without being in the scope of the articles discussion, in the fields of the efficient market, the superiority theory of the country in the economic competeduring international economy make financial subsidy necessary and significant. Thesubsidies to deal with the fail market, under circumstances such as exteriority, commonality, monopoly, fluctuation of economy, asymmetry of information, uncertainty of risk, and faultiness of the market, results from the functions of the country.Chapter four, Conflict and Collaborate in the Roles Among the Governments Under Open Economy, introduces the cooperation in the compete under open economy and compete in the cooperation in the process of global economic integration, there is a different interests and often conflict brings about there of, includes the practice of the financial subsidy, which needs the harmony and agreement, on the other hand, every contracting party has its sovereignty interest. How to take it into account at the same timeproduces the two parts of the rules of the WTO, which one is the principle and another is exception, such as in the areas of subsidy and countervailing. For instance, exemptions of the taxes between direct tax and indirect tax in the export products, the former can be taken the measures of investigation, but the latter will not, why is that? Because the indirect tax will be circulated, the person who undertaken the indirect tax will be a foreigner, and beyond the scope of the exporter/s sovereignty and will injury the sovereignty, according to the principles of equality and the sovereignty should be respected each other, the export country should exempt from the indirect tax. what is more, it introduces the legal system of the principles and exceptions under WTO rules thoroughly, and expands the relations between the international organizations, such as WTO and United Nations ,IMF,CCC,wipo, wto.oecd.fao, including therelations between the organizations of economic integrations and contracting parties, how to be put into the rules of WTO.Part two, The Categories, Characteristics and Principles of SubsidyChapter One, Sorts of Subsidy, concentrates in all kinds of the financial contributions, price support and income support besides their connection and difference, explore the economics theory, from economics view, that financial support influences both resources distribution and industries in so different ways than price support does that different impairments will be brought about, illustrating by the academic controversy on such issue between USA and Canada along with relevant leading cases.Chapter Two, Categories of Subsidy, after introducing three current subsidy categories within product manufacture and trading area, which is called material industry: prohibited subsidies (red box of subsidies) actionable subsidies (yellow box of subsidies), and non_actionable subsidies (green box of subsidies). Followed by the criteria to distinguish these categories from each other and their various applications among distinct contracting parties, especially diverse implements of these categories between developing countries to developed ones. Moreover, it accounts the evolvement and advancement of subsidy system both in GATTand WTO, ending with summary on the different treatments to China in WTO subsidy rules and the justifications for these treatments.Chapter Three, the constitutions for countervailing, focuses on each item of constitutions of every kind of subsidy respectively for the above subsidy category. Especially, the identification of quality of prohibited subsidies, with its foundations and principles from the point of economy study, and contents and scope, estimate of the adverse effects, subsidy and the interest of subsidy, and the cause between the subsidy and adverse effects are discussed in detail .in the mean while, elaborates the connections among the adverse effects, nullification or impairment and serious prejudice.In order to grasp it simply, it introduces the case of EL) against USA in the countervailing about foreign sales company (FSC) focuses on the revenue forgone. After it, it provides some information about how to practice them by America Commercial Department, such as the method and the principles of the measure of subsidy benefit, theory research and the innovation in the practice over that fields .for instance Time Series Analysis, Computable Partial Equilibrium Analysis, Comparative Static Analysis in the same time, deplores the upstream subsidy and downstream effect, reasons the relations between the upstream industry and downstream industry, deals with the four approaches of identifying the connections between the industries .Part three, Judgment of Market Economy Qualification and RelevantProvisions for this end in import nations' laws, advances the article's logical start—market economy, which is the premise of countervailing as well as the criterion for measurement and appraisal of subsidy benefits and effects, for nothing but the priceand subsidy under market economy condition equip the unique characteristic as the criteria for measurement and appraisal of subsidy and as the legal condition for measurement and judgment of comparability. This part will focus on the relations and differences between the measures to judge the situation of subsidy and dumping, subsided price, the premise of calculating subsidy benefits in order to briefly introduce the corresponding provisions established for the purpose of the market economy's criteria and condition by USA, EURO, CANADA respectively. The testification methods, proposition, subjects and coverage category of market economy condition will be discussed in details at the same time. Moreover, the author will dissertate how to choose and adjust the calculation criteria how to modify the condition and situation in order for the price to be applied more precisely and how to determine and select the alternative criteria and the measures adopted by import nations when no such alternative criteria can be determined.Part four, The Industrial Practice and Development in Subsidy PrinciplesThe articles expatiate on the evolvement and development of subsidy theories within trade areas in material, immaterial and service forms separately. Chapter One, about the material tradingunder subsidy systems dissociating from the WTO rules, discusses the subsidy to manufacture of civil aircrafts, clothing and textiles, and produces.Chapter Two, concerning various stages of technology innovations and relevant financial subsidy measures, expound the situations and characteristics of technology innovations in several different stages such as the basic research, application research or pre-competition research, industry research, explain the subsidy significances, characteristics and means during each stage, discuss in greater depth the relation between WTO subsidy rules and anti-subsidy rules. In Chapter Three, Produce Subsidy Rules and Principles, emphasizing the concepts such aggregate measurement support (AMS) .total aggregate measurement support, equivalent measurement of support , produce subsidy categories such as un_actionable subsidy (green box of subsidy ), actionable subsidy (yellow box of subsidy ), it clarifies the definition of Green Box Subsidy and its difference from the SCM Convention counterpart, particularly the different legal meaning of the corresponding rules regarding the export subsidy in these two conventions. It also presents the suggestions and schemes how to establish financial subsidy systems for Chinese agriculture basing on Chinese current situation. Chapter Four, Subsidy for ServiceTrading, differentiates service trading from product trading, summarizes the specialties and methods of services and service trading, especially listing subsidy rules in fields of financial service trading, telecommunication services, airway transportation and information services.Part five, the analysis of the gambling and chess in the subsidy and countervailing struggles between the developed countriesThe articles introduces the governmental support models for industry technology of developed countries, focusing on the significant trend in these countries of shift the stress of financial subsidy for industry to supporting and subsidizing the technology R&D, which is not only the characteristic of opening economic development but the practice of the WTO un-actionable subsidy rules, verified by the examples of commons and differences of Japan's and United States' relevant policies in this regard and the trend of their policy variations and developments. In the case of the theory and practice of national competition superiority and the proceeding of economy globalization, however, the fact that promoting economy has become every government's political focus is stimulating every countries to involve in subsidy-countervailing and take them into account in the policy of promoting economy.Chapter Two portrays the conflict of the financial subsidy for civil aircraft manufactures between European and USA, the competition of subsidies for semi-conduct industry between American and Japan, and the contest of financial subsidy and countervailing in the field of high-definition television, highlighting the compete of subsidy and countervailing between Boeing and Airbus for the orders from American Oriental Airline and Indian Airline.Sixth part of this article, the linkage of WTO rules and Chinese current lawsChapter One, with the title of the criteria of subsidy appraisal, introduces the criteria applied to justify the countervailing measure and distinguishes them from the criteria used in anti-dumping appraisal, briefs the controversy and legal risk existing in the current academia and litigation practices regarding to countervailing cases, followed by dissertating the relation and difference of administration check, administration review judicial review from the view of procedure laws and bringing out the suggestion and blueprint in respect of the effectiveness' superiority of arbitrations derived from Chinese laws and WTO DSB and the conflict settlement, not only in favor of member nation's jurisdiction independence and integrity but the legal effectiveness andseriousness of WTO rules and DSB arbitrations, in order to balance the different rules and complement each other by avoiding the conflicts and misunderstandings among them. Based on the characteristics of WTO rules and their connection with international laws and on the characteristics of their combination and transformation with Chinese civil laws.Chapter Two, Chinese civil laws and WTO countervailing rules, discusses the effectiveness superiority and applicability of these two different legal systems in addition to the practice and academic issues of WTO rules which are applied directly and indirectly under the common law system as well as under the continent law system and their comprisal and transformation within such systems. Based on this view, the article advances the relevant legal issues how to determine the effectiveness superiority between the WTO rules and China civil laws while how to combine them, propound that China would better not apply WTO rules directly which include subsidy and countervailing rules in order to sustain our country's industry security and promote the opening economy forward.Seventh part of this article, Subsidy Financial Mechanism and system EstablishmentChapter One elaborates that the economic mechanism ofsubsidy acting on price directly affect marginal cost in addition to both the mechanism and measure influencing marginal cost and the mutual relation of price flexibility and export price policy in the light of economics.Chapter two, follows by analyzing the relevant subsidy means and financial systems such as taxation expenditure, budget expenditure, finance expenditure and so on, especially focuses on how the budget expenditure would concern Chinese budget system reform and budget expenditure structure optimization and how finance expenditure would act on Chinese financial system reform while advancing the opinion concerning the difference and relation of the subsidy effect and macroeconomic policy's multiple effect.Chapter Three, revenue forgone of Financial Subsidy and Chinese Tax System Reform, Exploring the theory of tax expenditure and tax undertaken finally from economics view along with the different qualities of direct and indirect taxation in the context of subsidy rules, basing on the explanation for the distinct legal effects of direct tax and indirect tax evolved from the subsidy VS countervailing between USA and Europe, proposes that indirect tax, rather than direct tax, should grow dominant in Chinese tax system during the tax system reform process.Eighth part, Chinese Strategic OrientationThe summarization and conclusion of the whole article, presents Chinese strategy adopted in financial subsidy policy to satisfy WTO requirements. Chapter One, Sharpen the Awareness of Anti-subsidy Risk, points out that some information in disclosures of Chinese IPO reports imperiled Chinese industry security due to absence of risk awareness concerning to WTO subsidy and anti-subsidy rules. With the fact in mind that Chinese government passed the chance to entitle financial subsidy in the course of privatization, the article elaborates how Chinese take full advantages of competition, compensation and acquired benefits in the period of property structure optimization of Chinese state-owned enterprises, how to establish price mechanism and principle to bypass anti-subsidy risk, clarified by the diagnosis of the cases between USA and Europe occurring in the steel corporation privatization process of Britain and other countries.Chapter Two, Financial Support Stress Shift to Technology Innovation in Strategic Industry, clarify the definition and standard of strategic industry and prerequisite of development, technology innovation standard and the criteria for entitlement to financial subsidy, concentrating on how to sort out the candidates suitable for financial support and how to shift point of financial subsidy to industrial technology R&D in strategic fields in order to further theauthor's view about how to optimize financial support project management and how to take advantages to benefit from WTO subsidy rules.Chapter three Legal Room and subsidy strategy, How to establish a tax system with indirect tax as its heart part to intensify and promote the indirect tax positive effect on export, optimize the expenditure structure of national financial support by manipulating un-actionable subsidy rules and actionable subsidy rules, decide the level and condition of subsidy expenditure rationally, increase the industry promotion and financial subsidy in field of service trade, choice the financial subsidy strategy for country's macro_ economy policy.
|
PDF Full Text Request