China's Textile And Garment Industry Of The Subsidy System

This paper, consisting of introduction and three chapters, comprehensivelyanalyzescase DS451to introduce the characteristic of China textiles and garmentindustry and the development of China textiles and garment sector subsidy system.Chapter one: Mexico v. China textile garment (case DS451). Firstly it shows us thedevelopment of the case, involved members and the background: the competition inthe United States textile garment market between the two countries and the tradefriction. The second quarter translates and analyzes the main content of the Mexicanconsultations request and list of the available evidence. The third section is the keysection, which analyzes the compliance of the case basing on the SCM agreement.The core lies in3aspects:"financial funding and interest","specificity " and"damage". In conclusion, Chinese subsidies measures fulfill the law conforms of theSCM agreement on "financial funding and interest" and " Specificity", which meansChina may lose; the key of the case lies in the proof, but Mexico failed to completethe responsibility, the panel may make unfavorable verdict.Chapter2is key of the full text. From the industry and system dimensions, thischapter summarizes subsidy system of Chinese textile garment sector in anOmni-directional and three-dimensional way. The first quarter shows different stagesof development of the industry in our country in a view of history and industrycharacteristics. The second quarter, in system level, states that China textile garmentindustry has the characteristics of policy orientation,periodicity and specificity. Thissection is divided into three stages. Overall, there is a gap between China textilegarment sector subsidy system and the discipline of the SCM agreement; But there isno doubt that the legal framework of Chinese textile and garment international trade isin the process of establishing, correction and refinement, and it will gradually beinherent to the WTO rules and the trading power level.The third chapter is the outlook of Chinese textile garment sector subsidy system.This paper argues that: China must adjust the subsidy policy of our country basing onthe SCM agreement, and make full use of the developing countries and the economictransformation countries’ special treatment in subsidies from SCM agreement to improve Chinese textile garment sector subsidy system.