Analysis On The Influencing Factors Of American Countervailing Rate Against China

In recent years,the economic and trade frictions between China and the United States have become more and more intense and complex.The United States is the country that conducts countervailing investigations against Chinese enterprises most frequently.Since the coated paper case in 2006,the number of investigations initiated by the United States against our country has increased,and the countervailing tax rates imposed on Chinese enterprises have become higher and higher.China is frequently subjected to countervailing investigations by the United States,which has a huge impact on our country’s foreign trade situation and the development of import and export enterprises in China.Therefore,it has certain research value to study the countervailing issues of the two countries.In this context,based on the China Trade Remedy Information Network,the World Trade Organization website and the US Department of Commerce’s countervailing ruling report,this dissertation sorts out the global countervailing cases and the US countervailing cases against China.After that,this dissertation explains the current situation of the US anti-subsidy investigations against China from the perspectives of tax rates and industry distribution.Secondly,by analyzing the factors that may affect the US’s countervailing tax rate on China,we finds that the countervailing tax rate is closely related to the US’s non-recognition of China’s market economy status,application of AFA Rules,the government and enterprises not actively responding to the suit,the number and category of subsidized items,the amount involved,and the duration of the case.Thirdly,a simple linear regression is performed based on the data manually compiled by the author from the U.S.countervailing case ruling report against China.The results show: The government and companies’ inactive actions will significantly increase the rate of countervailing duties imposed.At the same time,there is a significant positive correlation between the number of subsidized projects and the countervailing tax rate,that is,the more projects subsidized,the higher the countervailing tax rate imposed by the United States on China.In addition,there is an obvious positive correlation between the amount involved in the case and the countervailing duty rate.The larger the amount involved,the greater the damage to the US domestic market,and the higher the countervailing duty rate may be imposed.There is no obvious linear relationship between the countervailing duty rate and the duration of the case.In the sub-sample regression involving other countries,there is a significant correlation between the non-market economy status and the application of AFA rules and the countervailing tax rate.The results also show that the countervailing tax rate imposed by the United States on China is significantly higher than that of other countries.Finally,on the basis of the above analysis,we puts forward suggestions for China to deal with the countervailing investigations of the United States and other countries from different aspects.