Interpretation of Endless Foreign Trade Barriers

Department of Commerce Bureau of Fair Trade, the U.S. law firm Heller Ehrman, “jointly held high-level seminar of trade remedies”, the number of participants reached a consensus: the foreign trade remedy investigations against China’s anti-dumping measures will remain in the main, but the ever-changing types of trade barriers, should pay close attention.

“Trade barriers against China are ever-changing forms.” Commerce Secretary for Import and Export Fair Trade Bureau of Shi-Chun Wang stressed.

Chinese enterprises are facing the United States “337 Investigation crisis”, the situation is not optimistic. Relative to the anti-dumping, many people may not be familiar with the United States, “337 investigation.” U.S. law firm Heller Ehrman, said , the U.S. International Trade Commission (ITC) on imported products infringe a U.S. patent (or other intellectual property rights) in the investigation of unfair trade is known as “Section 337” because This survey is conducted under the U.S. Tariff Act of 1930, carried out in Section 337. Most of the 337 cases involving patent infringement, in addition to trademark and copyright infringement, misuse of trade secrets and other 337 cases.

In his view, Chinese enterprises are facing the United States “337 Investigation Crisis”: In 2003 the United States against Chinese companies for “337 investigation”, more than any other country for the company to be more. available data indicate that the ITC “337 investigation” of the first 400 cases (1972-1998), only five (about 1%) cases involving Chinese companies. In 2003, ITC received the “337 investigation” cases, the number of cases against China as much as 25%. “Survey on China’s ‘337 ‘is likely to heat up. Interested in doing business in China U.S. companies should note that competitors are likely to investigate the use ‘337’ as a competitive means to maintain its market position.”

According to reports, if the ITC found that Chinese companies do have an offense to exist, will take two penalties: one issued exclusion order prohibiting the infringement of U.S. intellectual property products into the U.S. market. Since the ban was issued for all products rather than products, and therefore, it is difficult as in anti-dumping cases, the adoption of a new way of setting up a company to change all names to circumvent the import ban. Second, banning orders have been confirmed as Chinese products are still infringing the U.S. market, will be punished by fines up to 100,000 U.S. dollars a day.

In fact, the “337 investigation” is nothing but a variety of emerging, trade barriers a new guise. Shi-Chun Wang said that in recent years, more and more of China’s export products are various restrictions on foreign trade barriers, such as technology and health standards, inspection and quarantine measures, intellectual property, customs clearance procedures requirements. Measure of foreign trade barriers often lead to the use of trade friction.

“Mantis, cicada, oriole in the post”, Countervailing and “market economy status” to China’s dilemma. Canada this year, China initiated anti-subsidy investigations into the seminar topic of concern to one of the participants. This year, Canadian exports to China related industries, the three types of products (metal confining parts, thin floors and barbecue rack) filed applications for countervailing and antidumping investigations, these three products require countervailing duties. Government of Canada to accept an application on file, thus becoming China’s first anti-subsidy investigations abroad experience.

ZHANG Yuqing former Commerce Department said Secretary of Treaty and Law, the anti-dumping, the Chinese companies typically attempt to prove that its production and operation Junan market mechanism, for recognition of their “market economy status”, to use their actual cost, in order to avoid subject to the anti-dumping duties.

“At this point, however, once successful, we must immediately think of another point, the Western anti-subsidy law will be applied.” Emphasized ZHANG Yuqing said. In accordance with the practice in developed countries, and is also anti-dumping and other trade remedy measures, countervailing, under normal circumstances does not apply to “non-market economy country.” ZHANG Yuqing said, and acts as a business than dumping, subsidies are usually a government policy or measures, are often wide coverage. If dumping is an individual, microscopic phenomena, then the subsidy is often with a broad, macro features.

“Smashed in anti-dumping non-market economy status, gain market economy treatment in the process must be followed by a high degree of attention to anti-subsidy issues. Otherwise, just like the phrase ‘mantis catching cicada’ in mantis caught a cicada, but was again caught oriole. “ZHANG Yuqing said,” I think Canada is only a tentative anti-subsidy investigations start. If the Canadian experiment is successful, the consequences of China will certainly not optimistic. ”

U.S. law firm Baker and Fader door to remind: “If the WTO members recognized China’s market economy status, once instituted countervailing duty investigations against China, then the Chinese government policies and projects of each are likely to be subjects of the investigation. “For example, he said that the Government provide the community as a public product road perfectly justifiable, if only for individual companies building roads, they constitute acts of WTO prohibited subsidies.

The rise of China is not a threat, but a huge market. “The rapid development of trade friction will naturally increase. The rise of China is not a threat, but a huge market.” Shi-Chun Wang believes that “the face of increasingly severe trade friction situation, we need to maintain a normal attitude, without fuss and, more importantly is to actively deal with properly. ”

It is understood that, as a government department, Ministry of Commerce, Bureau of Fair Trade has been emphasis on the response of foreign trade remedy investigations: on the one hand, the foreign trade remedy measures to investigate the discriminatory and unfair practices, actively pursued negotiations with the Government; the other hand, by organization of training, seminars and other methods to improve business and protect its interests by responding to the awareness and ability to guide enterprises to effectively responding.

Shi-Chun Wang said that in practice, has been gradually established, including my overseas business organizations, companies involved, the relevant trade associations and lawyers involved in the multi-channel information exchange network for trade remedy measures, the Ministry of Commerce has formed, local commerce departments, intermediaries , the response of foreign enterprises to participate in the working mechanism of trade remedy measures, and achieved certain results. “In the future, expect more enterprises to participate in responding to the hope that business associations, law firms, full advantage of the agency in responding to the organization, coordination and service functions.”

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