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WTO Regulation of Subsidies to State-Owned Enterprises (SOEs) -- A Critical Appraisal of the China Accession Protocol

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  • Julia Ya Qin

Abstract

The existence of a large number of state-owned enterprises (SOEs) in China and government subsidies to them has caused much concern among its trading partners. The Protocol on China's Accession to the WTO sets out certain provisions directly or indirectly addressing this concern. Among them are the provisions of an SOE-based specificity test and authorization for the importing country to use, on a permanent basis, alternative benchmarks in identifying and calculating Chinese subsidies. In addition, the Protocol excludes China from invoking the privatization exception available to developing country members under the Agreement on Subsidies and Countervailing Measures. This article provides a critical analysis of the Protocol approach towards the issue of SOE subsidies and examines its implications for economic reform in China and for the WTO legal system. Copyright 2004, Oxford University Press.

Suggested Citation

  • Julia Ya Qin, 2004. "WTO Regulation of Subsidies to State-Owned Enterprises (SOEs) -- A Critical Appraisal of the China Accession Protocol," Journal of International Economic Law, Oxford University Press, vol. 7(4), pages 863-919, December.
    • Handle: RePEc:oup:jieclw:v:7:y:2004:i:4:p:863-919
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    Cited by:

    1. Nan Zhou, 2018. "Hybrid State-Owned Enterprises and Internationalization: Evidence from Emerging Market Multinationals," Management International Review, Springer, vol. 58(4), pages 605-631, August.
    2. Qi Quan & Nancy Huyghebaert, 2005. "Share Issuing Privatizations in China: Determinants of Public Share Allocation and Underpricing," LICOS Discussion Papers 16205, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. Zhou, Mohan & Lin, Faqin & Li, Tan, 2016. "Remote markets as shelters for local distortions: Evidence from China," China Economic Review, Elsevier, vol. 40(C), pages 241-253.
    4. Siqi Li & Xinquan Tu, 2018. "Impact of Chinese Characteristics on the World Trade Organization: Challenges and Strategies," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 26(2), pages 107-126, March.

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