The United States does not recognize China as a market economy. Yet at the same time it is willing to take anti subsidy actions against goods originating in China. This article examines the background to the US CVD policy vis a vis China and in particular the moves away from considering China as a state economy as in the old Eastern Europe sense allowing the opening of CVD actions in relation to China. The article then examines the various cases that have been opened (and concluded) and looks in some detail at the government practices that have been considered to be subsidies, the issue of specificity and the benchmarking of measures so as to measure the benefit granted. As the issue of possible double remedies between anti dumping and anti subsidy measures is of concern in the European Community, the US approach is examined in some detail. Finally the article examines legal challenges to the US approach both in domestic courts and in the WTO.
Global Trade and Customs Journal