What Is The Case That The "Alternative Countries" Of Anti-Dumping Investigations Are Confronted With A "Double Reverse" Survey Every 3 Days?

China has entered the World Trade Organization (WTO) for the past 15 years, and fifteenth of them have allowed other WTO members to make use of the "substitute countries" in anti-dumping investigations in China at the beginning of the signing of the protocol to China's accession to the world trade organization. However, it is stated that this practice should be terminated after China's accession to the WTO 15 years, namely, December 11, 2016. Now the EU has passed the last six months from the appointed date, but the European Union has no faith in it, and has launched an anti-dumping investigation against China again recently.

In June 23rd, the European Commission announced that it had launched anti-dumping investigations against low-carbon ferrochrome from China, Russia and Turkey.

This is the first case involving the Chinese anti dumping case after the expiration of the 15 entry of the WTO protocol.

Regarding this, Wang Hejun, director of the Ministry of Commerce's trade relief Investigation Bureau, said that since the beginning of this year, the EU has ignored WTO rules and obligations, and has continuously taken anti-dumping measures on steel products such as Chinese stainless steel fittings, medium and heavy steel plates, hot-rolled coil and seamless steel tubes.

Wang Hejun said that in these cases, the European Commission continued to use unfair and unreasonable "alternative country" methods, artificially cutting the high anti-dumping range, which seriously damaged the interests of Chinese enterprises.

The so-called "alternative country" approach refers to other WTO members in the anti-dumping and countervailing investigations to China, it can not be based on the actual cost of Chinese goods, but choose a "substitute country" similar commodity prices.

It can be expected that if the cost of production of such a "substitute country" is very high, it is obviously biased to measure Chinese goods.

The fifteenth provision of the protocol stipulates that the practice of using "substitute country" data by WTO members in the anti-dumping investigation of China's export products should be terminated in December 11, 2016.

But for a time, the United States, the European Union and other economies began to bind the concept of "market economy status" and refused to fulfill this commitment.

In simple terms, the content of the clause involves how the EU and the United States choose the reference standard when they conduct anti-dumping investigations.

If China's "market economy status" is recognized, in the anti-dumping and countervailing investigations, it must be based on China's actual cost; otherwise, if China is not recognized as "

"Other countries can determine whether the anti-dumping is established according to the cost of the designated products of the designated" substitute country ".

For example, in 1998, the EU's anti-dumping on Chinese color TV sets was based on Singapore's reference standard. In 2004, the US anti-dumping on Chinese color TV was based on India's reference standard.

According to the Ministry of commerce data, in 2016, China encountered 119 trade relief investigations initiated by 27 countries (regions), including 91 anti-dumping cases, 19 countervailing measures, 9 safeguard measures, involving 14 billion 340 million US dollars (about 97 billion 900 million yuan), the number of cases and the amount involved increased 36.8% and 76% respectively.

In January 5th, when the Ministry of Commerce convened the first press conference in 2017, Sun Jiwen, a spokesman for the Ministry of Commerce, said that, overall, the trade frictions encountered by China in 2016 reached a record high in the number of cases and the amount involved, of which nearly half of the trade frictions were concentrated in manufacturing related fields.

Liu Chao, Vice Minister of legal affairs of the China Council for trade promotion, said in a media interview that China has been the most frequently encountered anti-dumping investigation for 21 years in a row. It has been the largest number of countries experiencing countervailing investigations for 10 consecutive years. Recently, 1/3 of the world's surveys have targeted China.

As of December 21, 2016, a total of 27 countries (regions) launched 119 trade relief surveys for me, averaging 3 days each.

Why China will become the "worst hit area" of anti-dumping and countervailing investigations? What is the purpose of the US "and the EU" to launch a "double anti" investigation against China?

Cheng Cheng, deputy researcher of Chongyang Financial Research Institute, Renmin University of China, told reporters: from the macro level, China is the world's largest trading country, with frequent imports and exports, and a certain friction is a normal phenomenon.

On the other hand, under the background of greater international economic pressure, countries have not yet formed.

The new driving force is more focused on self-care and trade protectionism.

Wang Hejun, director of the Ministry of Commerce's trade relief Investigation Bureau, acknowledged in 2016 the national business working conference that trade frictions are directly related to China's "big but not strong" trade, relying on large quantities and low price strategy to win.

"However, some countries adopt the" alternative country "approach referring to the price of third countries, rather than comparing the price of China's exports with the domestic prices of China, and China firmly opposes this practice.

It is said that Chinese language is extensive and profound. In the same sentence, different tone and different pause may produce different meanings.

This time, however, the EU played a game of words with China.

In November 9, 2016, the European Commission formally submitted a bill to amend the anti-dumping legal system to the European Parliament and the Council of the European Union, and cancelled the list of "non market economy countries" to fulfill its obligations under the fifteenth provision of the protocol on China's accession to the WTO.

But at the same time, the EU has put forward a new concept, that is, the concept and standard of "market distortion" instead of the concept and standard of "non market economy".

"Distortion" may include government intervention, the proportion of state-owned enterprises, the arrangement of cheap loans or differential treatment to foster domestic enterprises.

In May 2017, the 28 member states of the European Union agreed to amend the anti-dumping law. They agreed to use the "alternative country" practice instead of the WTO member countries in the future anti-dumping investigation, but adopt the "market distortion" standard.

That is to say, if the importing countries think that the market is seriously distorted, the investigators can adopt the international index price.

Chinese Foreign Ministry spokesman Lu Kangceng pointed out that

This practice has neither completely and completely fulfilled the fifteenth obligations, nor has it been consistent with the rules of the WTO.

A few days ago, some media reported that the anti-dumping law had made new progress. From the European Parliament website, the International Trade Commission (INTA) under the European Parliament passed the new anti-dumping act in June 20th, with 33 votes, 3 votes against and 2 abstentions.

Mucklow, France's new president, called for a more rigorous review of European investment and mergers and acquisitions in China at the EU summit on 22, but was opposed by several Member States, and plans for discussions at the EU summit were postponed.

Reuters said in June 23rd that Chinese enterprises' investments in Europe, especially Germany, recently attracted attention. Ma Kelong's proposal was supported by Germany, Italy, Austria and other countries, but Greece, Portugal and Czech opposed the plan and demanded that they continue to open up the market.

The daily economic news reporter found on Euractiv, the official news website of the European Union, 23 months ago that EU leaders had discussed the foreign investment review, but the proposal for a more far-reaching establishment of institutional acquisitions has been rejected by Euractiv6.

Geng Shuang, a spokesman for the Chinese Ministry of foreign affairs, also said on the 23 th that under the current trend of anti globalization trend, many countries in the world, including the EU countries, have repeatedly stressed the need to oppose all forms of protectionism.

"The Chinese side has always encouraged Chinese enterprises to invest in the EU and ask them to comply with local laws and regulations.

At the same time, we also hope that the European side can provide a fair and fair environment for Chinese enterprises to invest and develop their businesses in the region.

Geng Shuang stressed.

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