"China has made considerable progress in protecting its domestic industries through antidumping, anti-subsidy and safeguard mechanisms invoked under World Trade Organization (WTO) rules and in accordance with the laws of the nation," said Wang Qinhua.

Wang is president of the Bureau for the Investigation of Unfair Trading, established under the auspices of the State Economic and Trade Commission. Speaking at a recent Anti-dumping Symposium in Beijing, she delivered a key report on China's recourse to anti-dumping, anti-subsidy and safeguard mechanisms during 2002. She also gave an indication of anticipated levels of activity for 2003.

Progress has been achieved as follows:

A Sound Legal Footing

Following WTO entry, China has introduced new measures to bring in anti-dumping, anti-subsidy and safeguard mechanisms. The measures contained in these three complementary procedures have served to complete the necessary strengthening of trade law and provide a sound legal footing for the legitimate protection of domestic industry from unfair competition from abroad.

Investigation and Arbitration Cases

The number of anti-dumping cases brought forward for investigation has increased since China's WTO entry.

In 2002, China investigated ten antidumping cases (including one under review). China's first antidumping investigation was launched on November 10, 1997 into imported art paper. Since then a total of 22 cases have been brought. So far six cases have gone to arbitration and seen financial penalties imposed. Two cases were set aside with "no harm" conclusions reached. In a further three cases, the government has taken temporary antidumping measures. Investigation is still ongoing in the 10 or so cases remaining.

The State Economic and Trade Commission carries out its investigations into harmful trading practices based on principles of openness, fair play, justice and arbitration. The legal rights of both sides are effectively protected. Due consideration is also given to the interests of enterprises, both upstream and downstream and of the public.

The anti-dumping arbitration decision reached in the art paper case protected the legal rights of the domestic industry and put a stop to the dumping of imported products in China at artificially low prices. Already the price of domestic products is recovering and both sales revenues and pre-tax profits can be seen to be increasing, all bringing significant economic benefits.

In the cases of Polyvinyl Benzene and Lysine Salt, "no harm" conclusions upheld the legal rights of the respondents. This serves to demonstrate the even-handed approach well founded on legitimate procedures, which is being operated by the Chinese government.

Steel Industry Safeguarded

Eleven categories of imported steel products were scrutinized in accordance with WTO rules and in compliance with China's safeguard measures. After a six-month investigation, the State Economic and Trade Commission arbitrated that domestic industries were indeed the victims of harmful trade practices in five main product ranges. These were hot-rolled thin plate, thin plate, painted plate, non-grain-orientated silicon steel and cold-rolled thin stainless sheet. The Commission found that increased imports of these particular products had been directly damaging the domestic industries. Thus from December 20, 2002 the Chinese government adopted safeguard measures that imposed quota restrictions on imports in the five steel categories for a period of three years. This first safeguard measure to be taken against steel imports will play a key role in supporting the restructuring of the domestic steel industry and in circumventing industrial action.

Early Warning Systems

The establishment of Early Warning Systems to expose harmful trade practices has clearly made good progress. This has been particularly the case in the auto industry where it has been viewed as a breakthrough.

On the basis of the success of the auto industry experience, the Bureau for the Investigation of Unfair Trading got together in June 2002 with China Nitrogenous Fertilizer, China Phosphorus Fertilizer and the China Iron and Steel Association. They have jointly established an Early Warning System for the fertilizer and steel industries.

The establishment and operation of Early Warning Systems is doing much to help speed up industrial restructuring and development.

(China.org.cn by Tang Fuchun January 14, 2003)