THE STATE-OWNED ENTERPRISES ISSUE IN CHINA’S PROSPECTIVE TRADE NEGOTIATIONS.pdfVIP

CIGI PAPERS NO. 48 — OCTOBER 2014 THE STATE-OWNED ENTERPRISES ISSUE IN CHINA’S PROSPECTIVE TRADE NEGOTIATIONS HEJING CHEN AND JOHN WHALLEY THE STATE-OWNED ENTERPRISES ISSUE IN CHINA’S PROSPECTIVE TRADE NEGOTIATIONS Hejing Chen and John Whalley Copyright © 2014 by the Centre for International Governance Innovation The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Centre for International Governance Innovation or its Board of Directors. This work is licensed under a Creative Commons Attribution — Non-commercial — No Derivatives License. To view this license, visit (/ licenses/by-nc-nd/3.0/). For re-use or distribution, please include this copyright notice. Cover image: Guangzhou South Railway Station, which opened in 2010 and is operated by the state-owned China Railway Corporation. 67 Erb Street West Waterloo, Ontario N2L 6C2 Canada tel +1 519 885 2444 fax +1 519 885 5450 TABLE OF CONTENTS iv About the Authors iv Acronyms 1 Executive Summary 1 Introduction 2 China’s AML and its Application Against SOEs 2 China’s AML: Structure and the Administrative Regime 3 The Application of China’s AML to SOEs 4 Changing Domestic and International Policy Background and its Impact on AML Competition Rule 5 China’s SOEs and China’s WTO GPA Negotiation 5 Difficulties in Including China’s SOEs in the Coverage of WTO GPA 6 Evaluation of China’s Offer of Accession to GPA 8 NME and China’s SOEs 10 Subsidies 10 Overview of China’s SOE Subsidies 12 The Trade Effects of China’s SOE Subsidies 12 Conclusion 13 Works Cited 16 About CIGI 16 CIGI Masthead CIGI PAPERS NO. 48 — OCTOBER 2014 ACRONYMS ABOUT THE AUTHORS