Zhao, LongyueWang, Yan2012-05-222012-05-222008-03https://hdl.handle.net/10986/6319In 2007, the United States Department of Commerce altered a 23-year old policy of not applying the countervailing duty law to non-market economies, and initiated eight countervailing and antidumping duty investigations on Chinese imports. The change brings heated debate on trade remedy policies and issues of non-market economies. This study focuses on the first countervailing duty case on imported coated free sheet paper from China and analyzes the implications of this test case for United States-China bilateral trade, and industrial policies in transitioning market economies. The paper also provides a brief review of the economics of subsidies, World Trade Organization rules on subsides and countervailing measures, and United States countervailing duty laws applied to non-market economies. While recently acceded countries should review their domestic development policies from the perspective of economic efficiency and comply with the World Trade Organization rules, it is also important to further clarify the issues of non-market economies under the multilateral trading system, and pay keen attention to the rules negotiations in the current World Trade Organization Doha Development Round.CC BY 3.0 IGOACTIONABLE SUBSIDIESAD VALOREMADVERSE EFFECTSADVERSE IMPACTADVERSE TRADE EFFECTSAFFIRMATIVE INJURY DETERMINATIONAGREEMENT ON SUBSIDIESAGRICULTUREANTI-DUMPING ACTIONSANTIDUMPING DUTYANTIDUMPING LAWSANTIDUMPING MEASURESAPPELLATE BODYAPPELLATE BODY REPORTBANK LENDINGBANK LOANSBANKRUPTCYBARRIERBARTERBENCHMARKBENCHMARKINGBENCHMARKSBILATERAL TRADECAPACITY BUILDINGCENTRAL PLANNINGCENTRALLY PLANNED ECONOMIESCENTRALLY PLANNED ECONOMYCOMMERCECOMMERCIAL BANKCOMMERCIAL BANKSCOMPARATIVE ADVANTAGECOMPLAINING COUNTRYCONSUMER SURPLUSCONSUMERSCONTRACTING PARTIESCOUNTERVAILING DUTIESCOUNTERVAILING DUTY INVESTIGATIONCOUNTERVAILING MEASURESCURRENCYCURRENCY EXCHANGE RATESCUSTOMSDARK AMBER SUBSIDIESDEBTDEBTSDEPRECIATION OF ASSETSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT POLICIESDIRECT TRANSFERDIRECT TRANSFERSDISPUTE SETTLEMENTDISPUTE SETTLEMENT BODYDISPUTE SETTLEMENT MECHANISMDISPUTE SETTLEMENT PROCEDURESDOMESTIC INDUSTRIESDOMESTIC PRICESDUMPED IMPORTSDUMPINGECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC IMPLICATIONSECONOMIC RELATIONSECONOMIC SYSTEMSENVIRONMENTAL IMPACTEQUITY INFUSIONEUROPEAN UNIONEXCHANGE RATEEXCHANGE RATE SYSTEMEXCHANGE RATESEXPANSION OF TRADEEXPORT PRICEEXPORT SUBSIDIESEXPORT SUBSIDYEXPORTING COUNTRIESEXPORTING COUNTRYEXPORTSFACTORS OF PRODUCTIONFAIRFAIR MARKET VALUEFAIR TRADEFAIR VALUEFINANCIAL CONTRIBUTIONFOREIGN BANKFOREIGN BANKSFOREIGN COUNTRIESFOREIGN COUNTRYFOREIGN DIRECT INVESTMENTFOREIGN GOVERNMENTFOREIGN INVESTMENTFOREIGN PURCHASERSFOREIGN TRADEFREE TRADEGDPGLOBAL EXPORTGOVERNANCE INDICATORSGOVERNMENT INTERVENTIONGOVERNMENT INVOLVEMENTGOVERNMENT SUBSIDIESGRANTING AUTHORITYHOME MARKETHUMAN CAPITALIMPORT SUBSTITUTIONIMPORT SUBSTITUTION SUBSIDIESIMPORTED GOODSIMPORTING COUNTRIESIMPORTING COUNTRYINCOMEINCOME GROUPINCOME LEVELSINCOME TAXINDUSTRIAL COUNTRIESINEFFICIENCYINFLATIONINPUT PRICESINSURANCEINTEREST RATEINTEREST RATESINTERNAL MARKETINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL BANKINTERNATIONAL LAWINTERNATIONAL TRADEINVESTIGATING AUTHORITIESITCJOINT VENTURESJUDICIAL REVIEWJURISDICTIONLIBERALIZATIONLOCAL BANKMARKET DISTORTIONSMARKET ECONOMIESMARKET ECONOMYMARKET ECONOMY COUNTRIESMARKET FAILURESMARKET FORCESMARKET ORIENTATIONMARKET PRICESMARKET REFORMSMARKET RISKMARKET SHAREMARKET VALUEMATERIAL INJURYMERCHANDISEMIDDLE INCOME COUNTRIESMIDDLE INCOME COUNTRYMONOPOLIESMONOPOLYNATIONAL ECONOMYNATIONAL INCOMENON- MARKET ECONOMYNON-ACTIONABLE SUBSIDIESNON-MARKET ECONOMYOUTPUTPOLICY RESEARCHPOLITICAL CONSIDERATIONSPOLITICAL REASONSPOLITICAL STABILITYPREFERENTIAL LOANPRELIMINARY DETERMINATIONPRICE COMPARABILITYPRICE CONTROLSPRICE SUBSIDIESPRICE SUPPORTPRICE TAKERSPRODUCTION COSTSPROHIBITED SUBSIDIESPROHIBITED SUBSIDYPROPERTY LAWSPUBLIC POLICIESQUANTITATIVE RESTRICTIONSRAPID GROWTHREBATEREBATESREGIONAL DEVELOPMENTRURAL INFRASTRUCTURESALESALESSAVINGSSETTLEMENT PROCEDURESSOCIAL STABILITYSOCIAL WELFARESTATE ENTERPRISESSUBSIDIZATIONSUBSTITUTIONSUPPLY CURVESURROGATE MARKETTAXTAX BREAKSTAX CREDITSTAX LIABILITYTAX RATETAX RATESTAX TREATMENTTERMINATION OF PROCEEDINGSTHIRD MARKETTRADE AGREEMENTSTRADE BARRIERSTRADE DISPUTESTRADE POLICIESTRADE POLICYTRADE RELATIONSTRADE REMEDIESTRADE REMEDY LAWSTRADING SYSTEMTRANSFER OF FUNDSTRANSITION COUNTRIESTRANSITION ECONOMIESTRANSITION ECONOMYTREASURYURUGUAY ROUNDWAGE RATESWORLD ECONOMYWORLD MARKETWORLD TRADEWORLD TRADE ORGANIZATIONWORLD TRADING SYSTEMWTOWorld Bank10.1596/1813-9450-4560