Research On Leagal Issues Of Countervailing Investigation Against China Under WTO

The foreign trade of China has been rising gradually after China’s accession to the WTO. Meanwhile, our trade frictions with the other WTO members are also growing. In recent years, countervailing investigation has been one of the main trade protection measures to China. It caused huge losses when China failed time after time in four issues during countervailing investigations launched by U.S. or Canada. The author tried to analyze Appellate Body Report (DS379), which had final conclusion about those four issues, to find the effective strategies to solve these issues about countervailing.This thesis is divided into three parts:the first part is on the current situation of countervailing investigation against China, with a brief introduction of on subsidy in SCM agreement and an emphasis on the current situation, causes and damage of the countervailing investigation on China. The second part is to discuss the four issues and the argument of both China’s and the U.S.’s in Case DS379, they are the definition of public body, the specificity of policy-related loan, application of external benchmark and double remedies.This essay discusses how to deal with countervailing against China in the light of conclusion of the Case DS379presented in former section:to take advantage of the new definition, to amend Commercial Bank Law; to establish the policy according to specificity standard, subsidize in the light of SCM Agreement; to know well about the other countries’ domestic law helps to defense application of external bench mark, to help make the regulation will favor China and to prevent anti-dumping and countervailing which would lead to double remedies.