From passive response to active action, why will China win?
On January 26, 2022 Swiss time, the World Trade Organization (HEREINAFTER referred to as “WTO”) announced the countervailing duty case of China against the United States (Case No. :DS437, which ruled that China had the right to retaliate with $645 million a year in trade against the United States for imposing countervailing duties on 10 Chinese products, including solar panels.The case lasted nearly 10 years, China’s perseverance to make use of WTO rules the best footnote of the rights and interests of enterprises legal trade, its successful results for China through legal means such as the WTO dispute settlement mechanism effectively curb the abuse of countervailing measures and successful safeguard the legitimate rights and interests of Chinese domestic enterprises of foreign trade on periodic period.The case went through the dispute settlement process. In the international world, WTO has attracted intense attention not only because of its large number of members, but also because it has a set of adjudication mechanism and punishment mechanism.The “Understanding on Rules and Procedures of Dispute Settlement” of the SCO provides detailed dispute settlement procedures for trade disputes between member states, which is an important dispute settlement mechanism under the international multilateral trading system.From the whole WTO system, countries and countries in the field of economic and trade exchanges, the existence of different opinions can request WTO ruling.In 2012, China made an initial request for consultation on us anti-subsidy measures against Chinese oil well pipes and other products.In 2014, both the WTO panel and the appellate body found that the US countervailing measures violated WTO rules, and confirmed in 2015 that the US should complete the correction before April 1, 2016.In 2016, China launched the implementation review process;In 2019, the DISPUTE Settlement Body confirmed that the US had failed to fulfill its corrective obligations. In October of the same year, China filed an application for trade retaliation authorization and argued hard to defeat a number of unreasonable adjustment requests from the US. Only recently did the DISPUTE settlement Body declare China’s victory.In WTO rules, the case went through such procedures as consultation, hearing by the panel of original instance, appeal by the panel of original instance, arbitration of reasonable execution period, hearing by the panel of executive action, appeal by the lawsuit of execution, and arbitration of trade retaliation level, etc., which went through the whole WTO dispute settlement procedure. It is the second time for China to obtain the amount of trade retaliation against the United States in WTO.The last time was in November 2019, when the WTO issued an arbitration award on the level of trade retaliation in China’s anti-dumping measures against the US (DS471), which determined that China’s trade retaliation against the US was $3.579 billion a year.To defend their rights to respect international norms on 27 January, Chinese society for the study of the world trade organization (WTO) trade remedy, deputy director of professional committee of Jacky said in an interview with reporters “legal person”, the case to the WTO successfully rejected parts in China’s state-owned enterprises belong to “public body” as an excuse to wanton, on grounds of “government interference” countervailing measures is not reasonable,It not only effectively refutes the US accusation that China is “non-market oriented”, but also demonstrates China’s strong determination to defend the international multilateral trading system, adhere to market orientation and attach importance to the protection of property rights, contracts and rules over the past four decades of reform and opening-up.Zhang Wei believes that from the DS437 case, the United States took ten anti-subsidy measures against China, to the DS543 case, the United States implemented 25% discriminatory tariff measures against China, China has won the support of WTO after arguing with reason.To some extent, it condemns the us and some other countries for violating WTO rules, abusing trade remedy measures and refusing to comply with effective rulings that undermine the international trade order.Yang Chen, a lawyer at Jincheng Tongda Law Firm in Beijing, represented the United States in its first anti-subsidy case against China.Yang Chen told reporters on January 27 that there are loopholes and unfair practices in the US anti-subsidy investigation mechanism against China.”China’s communication effect was poor through bilateral exchanges and defense of individual cases, so in 2012, China filed a package of cases that the US had taken anti-subsidy measures against China before 2012 to the WTO dispute settlement Body.””Since the United States is not willing to take self-corrective measures based on its unreasonable behavior, China can take retaliatory measures against the United States to offset the losses suffered by China due to its unfair practices toward China,” he said.Beijing ying and lawyers international business Chen Dong believe that by establishing mechanism, the western developed countries for many years of experience and abundant related personnel, in the history of the practice of this mechanism has been the dominant, but China since the accession to the WTO in 2001, after a long-term unremitting efforts, the effective use of WTO rules to maintain their legal rights and interests,From the early passive response to the development of the present active action.”China in nearly a decade of economic and trade exchanges, always adhere to the through bilateral dialogue to resolve differences, in the face of the United States often unilaterally take all sorts of unfair means, insist on defending their rights in the framework of WTO multilateral mechanism in, both shows respect for international norms, China also shows in the world a good image of a responsible big country.”In recent years, Europe and the US have abused trade remedies to restrict imports from China.From 2010 to 2020, 759 anti-dumping investigations, 159 anti-subsidy investigations and 202 safeguard measures investigations were launched against China, said Judge Zhang Yuejiao, dean of the Institute of International Dispute Settlement at Tsinghua University and former chairman of the WTO appellate Body.The US has launched 87 anti-dumping investigations, 81 anti-subsidy investigations and three safeguard investigations against China.’When Chinese companies encounter unreasonable or unfair government trade measures overseas, they should take the initiative to learn international trade rules and use professionals to implement legal business strategies,’ Mr. Zhang said.”When the interests of enterprises are damaged due to foreign low-price dumping or illegal government measures, they should collect evidence and have the courage to take the initiative to appeal to the state department of commerce to protect their legitimate rights and interests.”European and American countries are the makers of many international rules, and they are more familiar with the rules. Many Chinese enterprises are afraid when they take advantage of international rules to fight against these countries.Yang Chen said, “Actually, you shouldn’t have this emotion. Now that you are ‘going out’, you should have the courage to face these challenges.When Some Chinese enterprises’ go global ‘and deal with some European and American countries, especially some countries with relatively sound rule of law, they will blindly believe that the integrity of these countries’ enterprises is very high, but in fact, many foreign enterprises will try to use the rules to protect or expand their own interests.”He suggested that Chinese companies “going global” should learn international rules and be adept at using them to protect themselves.