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Abstract
As an important legal means of maintaining the fair trade and protecting the domestic industry, countries all over the world identify the importance of the subsidies and countervailing measures in the international economy and trade. Facing to the fierce competition in the international economy, each government pays more and more attention to the subsidies to gain the advantages in the competition, microscopically stimulating the export and increasing the foreign exchange and their own countries’ economy, macroscopically promoting the escalation of the structure of their own countries’ industry, improving the competitive strength. How to try their best to strengthen the subsidies under the tolerable limitation, and how to set out the subsidy measures to restrict other countries have been the main task which every government is facing.
Countervailing measure is one of the three main trade remedy measures of WTO, which can be taken by WTO members under certain conditions. Compared with anti-dumping measures and safeguard measures, countervailing measures relate to a government’s activities, so it is more sensitive in political term. Moreover, WTO members cautiously take countervailing measures because the methodology of calculation on investigating the subsidy is not perfect. At the present time, the study and the innovation have become the focus which every country is concerned with.
When joining WTO, China promised that it would accept the treatment as a non-market economy country on the subsidy. So in the past, most western countries thought that in the non-market economy countries like China, the price of capital goods is controlled by the government, thus it’s difficult to differentiate the governmental subsidy from the actual cost of production. So they thought the non-market economy countries were not applicable to the
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countervailing measures. Therefore we Chinese haven’t paid more close attention to the subsidies and the countervailing m
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