Overview of China’s Trade Remedy System

Luo Jin2004 Seoul International Trade Remedy

seminarMay 19, 2004

Overview of Trade Remedy System Overview of Legal framework Overview of Practice Latest legal development Characteristics of practice Future Development Views on relevant trade remedy

issues

Overview-Legal Framework Law Regulation Rules

Overview -Law Law: Foreign Trade Law

Enacted on 1, June, 1994Art. 30, covering anti-dumpingArt. 31, covering anti-subsidyArt. 29, covering safeguardArt. 32, investigation and adopt

measure

Overview-Regulation Anti-dumping regulation Anti-subsidy regulation Safeguard regulation

Published 2001-10-31, Came into force 2002-1-1

Overview- AD Rules Antidumping : 12 provisional rules, came into force during March and

April of 2002 1 rule , came into force on October 29,

2003

Overview-AD Rules Initiation of Anti-dumping

Investigation Adjustment of Products under

investigation

Questionnaire Sampling On-the spot Verification

Overview-AD Rules

Public hearing Disclosure of information Access to Non-Confidential

Information

Price Undertaking

Overview-AD Rules

Interim review of dumping and dumping margin

New shipper review Refund

1 rule on industry Injury Investigation in Anti-dumping

Overview- CVD Rules Anti-subsidy : 4 Provisional rules came into force on 13, March,

2002

1 rule came into force on 29, October,

2003

Overview-CVD Rules Initiation of Investigation Questionnaire On-the –spot Verification Public Hearing Rules on Industry Investigation in

Countervailing Measures

Overview-SG Rules Safeguard 3 Provisional rules came into force on 13, March, 2002

1 rule came into force on 29, October,

2003

Overview- SG Rules

1. Initiation of Safeguard Investigations,

2. Adjustment of Products underInvestigation 3.Public Hearing 4. Rules on industry Injury

Investigation in Safeguards

Overview of Practice -AD Antidumping First case: initiated on 12, 1997 product under investigation:

newsprint countries involved: Canada, USA,

Korea

Overview of Practice -AD Up to the end of April, 2004, original investigation : initiation 91 cases Final determination: 52 (6 no injury, 2

withdrew of application, 4 termination) before preliminary determination : 20 before final determination:7

Overview of Practice -AD Review 1case: interim review , started

Jan.2002 By the end of April ,2004 Initiations: 5 (2 interim reviews, 3

expiry reviews) Final determination: 1 new application: 1

Overview of Practice -AD Refund Started March, 2004 2 applications under investigation

Overview of Practice-CVD Countervailing Research No initiation by the end of April

2004

Overview of Practice-SG Safeguard 1 initiation on imported steel

products from May 20, 2002 Follow safeguard measures of US,

Canada, EU on application of China’s steel

producers

Overview of Practice-SG Final measure on 5 categories of

imported steel products for a period of 3 years, (from Nov, 2002) in the form of tariff rate quota

Frequent liberation of products from the measure

Final measure terminated in Sept. 2003

Latest Legal development Foreign Trade Law Amendment Background Aim Published on April 6, 2004 Will come into force on July 1,

2004

Latest Legal development Amendment: Add 2 new chapters related to

trade remedy Chapter 7: Foreign Trade

Investigation Chapter 8: Foreign Trade Remedy

Latest Legal development

Trade Remedy Regulation Amendment

Background Published on 31, March 2004 Will come into force on 1, June,

2004

Latest Legal development Anti-dumping Regulation: Change of investigation authority Forms of bond Consider public interest Words amendment

Latest Legal development Anti-subsidy and Safeguard

regulation Change of investigation authority

Characteristics of practice Trade remedy measures

concentrate on 3 sector: chemical, steel, paper

Most measure in AD duty Conflict between upper and lower

industry

Future Development Review: Increase of cases Complex of situations Lack of experience Research Draft of rules and regulations

Future Development Public interest: How to define Applicant Procedure result

Future Development Product scope: Questionnaire

Procedure: Rejection of application Deadline of supply of information

Future Development Amendment of rules and

regulations More input on DSU Expansion of personnel

Views on Relevant Trade Remedy Issues New-round rules negotiation Friends club EU Korea China’s proposition