The Analysis Of Subsidy And Anti-subsidy Policy

On the March 30 2007,America Business Department proclaimed the result of the case that the New Page accused the Chinese producers of copper paper got the subsidy from Chinese goverment. America Business Department decide to use anti-subsidy ways to the copper paper inported from China, and apply the WTO's arbitrament court to use much more ways to Chinese subsidy policy. This decision break the custom that the anti-subsidy laws and rules are not fit for the un-market economy countries, caused huge effect on the international trade area.This papers mainly focuses on the subsidy and anti-subsidy in of the trade between China and America, analyses the economical effect and the actual effect and give some suggestions to deal with the problems. The papers includes five parts.The first part introduces the fundamental knowledge of the subsidy and anti-subsidy such as the developing process, concepts, categories and the situation of using in the world. Secondly this part concentrates on analysing the rules and laws about the subidy and anti-subsidy of WTO, especially introduces the content of the WTO's .It is necessary to do this introducing because we were lack of this kind of knowledge before.The second part introduces the developing process, recent situation and the position in the world of the trade between China and America, and analysing the hot questions in the trade between China and America such as the exchange rate of the RMB, the trade difict and so on. After that, this part also includes the history, changing and effect about how America using the anti-subsidy policy to China.I think the trade between China and America has an good trendency, there are some objective reasons for the potential problems, but the anti-subsidy survey will maybe become a new obstacal to China.The third part mainly analyses the subsidy and anti-subsidy policy's fundamental conditions of international trade, strategic trade policy and the effct to national welfare. After that, with the graphical and mathematical analysis, it can understand the reasons for using policy and the possible effect of the trade between China and America directly.The fourth part basing on the fact of the trade between China and America, comments the Chinese subsidy policy's effect for export, analyses the active and negative aspects. And show the essence about why America Business Department decide to using anti-subsidy ways to Chinese products. The purpose is to focus on the American anti-subusiy survey to Chinese copper paper, and show its target and reasons, and analysing the effect of the American Business Department's decision, it will set a example for the other countries, and the other Chinese products may get the anti-subsidy survey in the future. I think the fundamental reasons of this survey is the rising of American trade protectionism caused by the unbalance of the trade between China and America.The fifth part is to introduce the necessary changing of the Chinese current subsidy policy and how to deal with the anti-subsiy survey. It includs many ways and means such as facing to the survey actively, setting the Chinese own anti-subsidy laws, using the WTO's developing country treatment, training the necessary experts who are familiar the laws and rules about the subsidy and anti-subsidy.The last part is the conclusion.