Implications And Strategies Of China-USA Tire Special Safeguard Case

The further development of world trade liberalization and China's accession to WTO make the products made in China gradually almost every corner of the world.So more trade conflicts are caused between the developed countries and China, which is often used for political purposes.2009 April, the United Steelworkers submitted an application to the United States International Trade Commission, requesting an investigation about special safeguards on the tires imported from China, then began the two-year China-USA Tire Special Safeguard Case. By the end of 2010, the Arbitration Commission of WTO announced that the United States won the court case which means that the America has the right to bring into the transitional Product-Specific Safeguards measures to the Chinese tires which repot to USA. The Chinese Ministry of Commerce responded quickly and made a preparation for the appeal. To WTO Dispute Settlement Body, this is the first case concerning transitional Product-Specific Safeguards measures and the arbitration and interpretation of this protective mechanism is also significant to other members of WTO.Trough the analysis of the real of the China-USA Tire Special Safeguard Case and the inquires of the general and special safeguards measures under WTO frame, this essay aims to explore the issues of legal regulations and practical operations of the "Special Safeguards on China" based on the China's WTO Accession Protocol and China WTO entry report.This article concentrates on the situation of the US courts for WTO legislations and the research on characteristics of WTO dispute.settlements in order to understand the US special protectionist tariffs action steps and practices. However, the most important concept "Special Protection System" is needed to understand the essence of this case. The Special Safeguards Measures under WTO frame is a concept comparative to the General Safeguards Measures and it means the overall title of narrow types of protective actions in addition to the general safeguards measures. Legislated by the China's WTO Accession Protocol and China WTO entry report, the special security system for China was established during the process of China's accession to WTO and under the requirements raised by other members. It is a unique system parallel or independent to WTO safeguards measures, so it is sometimes called "Special Safeguards on China" or "Safeguards against Chinese Products" etc. This is the transitional action directed to China's entry to WTO, in order to prevent the economic losses of WTO members caused by the large output of Chinese products. Moreover, the United States amended its U.S. trade law (1974) and added specifically for China's "section 421" in accordance with the Special Safeguards Measures on China. After analysis the section "421" and the mechanisms mentioned above, the author points out the fact that the behavior of the US government violates the original idea of WTO laws.Finally, the author speculates that what we should do to respond to the special transitional measures under the premise of the analysis of rationality and drawbacks of Special Protection against China. In this paper, both domestic and foreign policies are put forward.