Research On The Legal Issues Of Subsidies For State-owned Enterprises

Competition neutrality is an international rule that guarantees fair competition between state-owned enterprises and private enterprises.It is intended to restore the international competition order damaged by unfair competition between enterprises.It requires the government to reduce interference in state-owned enterprises,especially the government's extensive funding for state-owned enterprises.Aid to eliminate distortions in the allocation of resources caused by the public ownership of enterprises.The issue of China's state-owned enterprises' subsidies has been the subject of much criticism at home and abroad,causing high vigilance in Europe and the United States.As a result,China's state-owned enterprises have often been the target of crackdowns and regulations on foreign trade and investment.An important factor in economic status is also one of the core issues of most concern in Sino-US economic and trade negotiations.The international community hopes that the Chinese government will improve its competition policy system,adhere to competition neutrality,implement tax neutrality,debt neutrality,and regulatory neutrality for state-owned and private enterprises,treat all market entities equally and treat them equally.From any perspective of domestic and international law,state-owned and private enterprises As an equal subject in the development of a market economy,the legitimacy and legitimacy of the additional subsidies given by the government to state-owned enterprises over private enterprises do not exist.Therefore,the use of laws and regulations to solve the problem of subsidies for state-owned enterprises is an urgent issue.This article uses theoretical,standardized,and empirical research methods to discuss and analyze the disadvantages of China's state-owned enterprise subsidies and the controversy and impacts from the perspective of competition neutrality in three parts.The first part discusses and analyzes the practical problems of state-owned enterprise subsidies.First,It is the vagueness of the domestic legal definition of state-owned enterprises,and it is repeatedly considered as a public institution in the world.The second is that government subsidies are policies that distort markets with discriminatory treatment and non-commercial assistance and affect a level playingfield.The third is the opaque disclosure of state-owned enterprise subsidies,which leads to corruption and the loss of state-owned assets.The fourth is the serious problem that state-owned enterprise subsidies have incomplete domestic legal basis and no supervision system.In the second part,the author elaborated that international competition is being used to regulate state-owned enterprises to prevent them from gaining advantages from harming the fair market environment.At the same time,other countries have also initiated anti-subsidy and anti-dumping investigations,adopted trade remedy measures,and imposed anti-subsidy taxes.The method of building tariffs,and even conducting a security review of the overseas investment of state-owned enterprises,solves and prevents the impact of state-owned enterprise subsidies on other enterprises,causing China's state-owned enterprise export trade and investment to be blocked.In the third part,the author proposes countermeasures to solve the problem of subsidies for state-owned enterprises in China.The first is that China should add competition neutral provisions to the monopoly law,strengthen the disclosure and supervision of state-owned enterprise subsidies,and create a level playing field for state-owned and private enterprises.The budget law increases the budget for state-owned enterprise subsidies,so that state-owned enterprise subsidies have laws to follow.The third is that China should actively participate in the revision of anti-subsidy agreements,weigh the advantages and disadvantages,seize the opportunity to join the CPTPP,use competitive neutrality to regulate state-owned enterprise subsidies,and build Sunshine State-owned Enterprises.China should promote the reform of state-owned enterprise subsidies in accordance with market rules,regulate state-owned enterprise subsidies with competition neutrality,break the government's preference for state-owned enterprises,and gradually allow our enterprise subsidies to move towards legalization and transparency.