Review of China's Trade Defense and Related Policies for 2021-2023

The World Trade Organization (WTO) Secretariat has conducted a review and assessment of China's trade policy for the period 2021-2023. Some of the key findings on trade defense policy that are worth noting were published in the WTO Report in June 2024 as follows:

1. Anti-dumping, countervailing and safeguard measures

1.1. Anti-dumping:

The main legal documents related to the conduct of anti-dumping investigations and the application of anti-dumping measures include the Foreign Trade Law, the Anti-dumping Regulations and a number of published Regulations (including temporary regulations).

China initiated three anti-dumping investigations from January 2021 to December 2023 (Table below). These investigations involve the following products and trading partners: polycarbonate (Taiwan, November 2022); phthalocyanine (India, March 2022); and propionic acid (United States, July 2023).

Table 1: Anti-dumping Investigations and Measures, January 2021-December 2023

Measures	2021	2022	2023
Initiate investigation	0	2	1
Temporary measures	2	1	1
Decisive measures	2	2	1
Expiration or termination of measures	7	5	3

 

Source: WTO documents G/ADP/N/391/CHN, February 28, 2024; G/ADP/N/384/CHN, September 4, 2023; G/ADP/N/377/CHN, March 6, 2023; G/ADP/N/370/CHN, August 16, 2022; G/ADP/N/364/CHN/Corr.1, July 7, 2022; G/ADP/N/364/CHN, April 1, 2022; G/ADP/N/357/CHN/Corr.1, July 6, 2022; and G/ADP/N/357/CHN, September 16, 2021.

Table 2: China's anti-dumping measures on the following products were terminated during 2021-2023

Products	Partners	Period
Barley	Australia	8/2023
Bisphenol-A	Thailand	3/2023
Photo paper and paperboard	United Kingdom	3/2023
Caprolactam	European Union, United Kingdom and United States	10/2023
Dispersion unshifted single-mode optical fibre	United Kingdom	4/2022
Cao su cloropren (chloroprene rubber)	United Kingdom	5/2022
Iron-based amorphous alloy ribbon	Japan and United States	11/2021
Pure Axit terephthalic	South Korea and Thailand	8/2021
Grain-oriented flat-rolled electrical steel	United Kingdom	7/2021
Unbleached sack paper	United Kingdom	4/2021
polyamide-6	United Kingdom	4/2021

Source: China Trade Policy Review Report, conducted by the WTO Secretariat and published in 2024

By partner market:

As of the end of December 2023, China had implemented 120 definitive anti-dumping measures. Imports from 17 countries or territories were affected. Note: The European Union is counted as a market partner when the measures are applied to all EU member states.Among all affected trading partners, imports from the United States were subject to the most anti-dumping measures, followed by Japan, the European Union and South Korea. This result shows a similar trend to the previous period.

During 2021-2023, the Ministry of Commerce of China (MOFCOM) accepted 3 administrative review cases on trade remedies (2 cases in 2021, 0 cases in 2022 and 01 case in 2023); it did not accept any related administrative litigation cases. During the review period, the Ministry of Commerce of China accepted 3 administrative review cases on anti-dumping measures (2 cases in 2021, 0 cases in 2022 and 01 case in 2023).

Table 3: Definitive anti-dumping measures taken by China, effective, by trading partner, January 2021 - June 2023

Partner	2021	2022	2023
United States	24	25	25
Japan	20	20	20
EU	18	17	17
South Korea	15	16	16
United Kingdom	15	12	11
Taiwan	7	7	7
India	6	5	6
Malaysia	4	4	4
Singapore	3	2	3
Thailand	4	4	3
Brazil	2	2	2
Australia	2	2	1
Indonesia	1	1	1
Russia	1	1	1
Saudi Arabia	1	1	1
South Africa	1	1	1
Turkey	1	1	1
Total	125	121	120

Note: 2021-2022 figures reflect anti-dumping measures in effect on 31 December each year.

Source: WTO Documents G/ADP/N/384/CHN, 4 September 2023; G/ADP/N/377/CHN, 6 March 2023; G/ADP/N/364/CHN, 1 April 2022; G/ADP/N/364/CHN/Corr.1, 7 July 2022; G/ADP/N/350/CHN, 9 March 2021; and G/ADP/N/350/CHN/Corr.1, dated 6 July 2022.

By product:

China’s longest-standing anti-dumping measures relate to chloroprene rubber from the European Union, Japan, and the United States; single-mode optical fiber dispersion-free from Japan and the Republic of Korea; potato starch from the European Union; nonylphenol from India and Taiwan (China); electrolytic capacitor paper from Japan; and bisphenol-A from Japan, the Republic of Korea, Singapore, and Taiwan (China).

Chemical products continued to account for the majority of anti-dumping measures in effect at the end of June 2023, followed by base metals and articles of base metals.

Specifically: Chemical products (74 cases), accounting for approximately 62% of the total measures; base metals and articles of base metals (15 cases), accounting for approximately 12%; Plastics, resins and rubber (9 cases), optical fibres (9 cases), Paper, cardboard and paper products (7 cases).

Chart 1: Structure of goods subject to anti-dumping measures by China, as of June 2023

Note: Other includes animal products (01 measure), cereals (01 measure)

Source: China Trade Policy Review Report conducted by the WTO Secretariat and published in 2024

1.2. Countervailing Measures:

The number of Chinese countervailing investigations initiated and measures in force has been decreasing over the past few years (table below). No countervailing investigations were initiated during the review period. The following measures were reviewed and extended: potato starch (European Union); and distillers dried cereals with or without solubles (United States). The following measures were terminated: potato starch (United Kingdom, September 2022); and barley (Australia, August 2023).

Table 4: Investigations and countermeasures, 2021-2023

Case	2021	2022	2023
Initiate investigation	0	0	0
Temporary measures	1	0	0
Decisive measures	0	0	0
Expiration or termination of measures	0	1	1
Effective measures	7	6	4

Source: WTO documents G/SCM/N/414/CHN, dated 7 February 2024; G/SCM/N/407/CHN, dated 30 August 2023; G/SCM/N/399/CHN, dated 1 March 2023; G/SCM/N/392/CHN, dated 12 September 2022; G/SCM/N/386/CHN, dated 1 April 2022; G/SCM/N/379/CHN, dated 23 September 2021; G/SCM/N/371/CHN, dated 26 February 2021; and G/SCM/N/363/CHN, dated 16 October 2020.

Overall, there have been no changes to existing laws and no significant changes to administrative rules on countervailing measures or countervailing investigation procedures in China since the Pre-Assessment published in 2022.

Previously, the WTO's China Trade Policy Review Report published in 2022 found that the legal framework governing countervailing measures remains the Foreign Trade Law (amended in 2016), the Countervailing Measures Regulations (amended in 2004) and a number of published rules. In 2018, China notified the WTO of its Interim Rules for the Implementation of WTO Disputes in Trade Remedies, which entered into force on 29 July 2013. Eight countervailing duty investigations were initiated during 2018-2021, one of which was subsequently terminated due to public interest considerations and another was terminated due to the withdrawal of the petitioner. In January 2019, China initiated a review of its countervailing duties on solar-grade polysilicon from the United States, resulting in the continuation of the final duties imposed in January 2020. In April 2019, China initiated a review of its countervailing duties on distillers’ dried grains with solubles from the United States, resulting in the maintenance of the original measures.

1.3. Safeguard Measures

During the period of 2019-2023, China did not initiate any new safeguard investigations

The laws and regulations governing safeguard measures in China have not changed during the review period. The Ministry of Commerce of China is still responsible for investigating and determining whether there has been an increase in imports and whether there has been injury to the domestic industry.

Note that if the investigation involves agricultural goods, the investigation and determination must be jointly conducted with the Ministry of Agriculture and Rural Affairs of China.

2. References to some policies, regulations, and trade measures affecting imports

Customs regulations are under the jurisdiction of the General Administration of Customs of China (GACC). As of the end of March 2024, there were 42 Customs Departments, 678 customs departments, and 131 customs agencies under the GACC.

The Customs Law and a number of other legal documents regulate customs procedures that directly affect the import of goods into China.

Changes made in 2021 to the Customs Law removed administrative licensing requirements for temporary import and export of goods. In addition, in December 2022, Article 9 of the Foreign Trade Law was abolished; therefore, for enterprises and individuals who are applying for import and export licenses and other relevant documents (e.g., technology import and export contract registration certificates, export quotas, and state trade rights), the competent authorities no longer require them to submit or register as foreign trade operators. Accordingly, from December 30, 2022, the Departments of Commerce at the local level have stopped the procedures for submitting applications for registration as foreign trade operators.

Regarding customs-related measures applicable to the Pilot Free Trade Zone (PFTZ), the Measures for Promoting Institutional Opening of Qualified Pilot Free Trade Zones and Free Trade Ports under the International High Standard and the General Plan for Promoting Institutional Opening of the China (Shanghai) Pilot Free Trade Zone under the International High Standard Economic and Trade Rules, both of which will be issued in 2023, include provisions on customs-related facilitation measures applicable to the Qualified PFTZ and free trade port.

Below are some notable legal documents related to China's import and export of goods, updated to 2024:

Table 5: China's Laws Related to Customs Procedures, Updated to 2024

Legal documents	Effective/Revised Date
Customs Law	Notice No. 51, issued in 1987 and amended in 2000, 2013, 2016, 2017 and 2021
Regulations on import and export taxes	Notice No. 392 of the State Council, issued in 2003 and amended in 2011, 2013, 2016 and 2017
Regulations on customs declaration management for import and export goods	GACC Notice No. 103, issued in September 2003 and amended in 2014, 2017 and 2018
Customs regulations on tax collection management for imported and exported goods	GACC Notice No. 124, issued in 2005 and amended in 2010, 2014, 2017 and 2018
Law on Inspection of Import and Export Goods	Decree No. 14 of the President issued in 1989 and amended in 2002, 2013, 2018 and 2021
Regulations on the implementation of the Law on Inspection of Import and Export Goods	Notice No. 447 of the State Council, issued in 2005 and amended in 2013, 2016, 2017, 2019 and 2022
Regulations on registration and management of imported food manufacturers abroad	GACC Notice No. 248, issued in 2021 and effective from 2022
Measures to manage food safety in import and export	GACC Notice No. 249, issued in 2021 and effective from 2022
Corporate credit management measures registered and submitted to GACC	GACC Notice No. 251, issued in 2021
Regulations on classification of import and export goods	GACC Notice No. 252, issued in 2021
Regulations on submitting customs declarations of units	GACC Notice No. 253, issued in 2021
GACC measures on management of origin of imported and exported goods under the Regional Comprehensive Economic Partnership Agreement	GACC Notice No. 255, issued in 2021
GACC Measures for Comprehensive Management of Linked Areas	GACC Notice No. 256, issued in 2022
Legal document Date of issue/amendment GACC's measures on managing the application of import and export goods inspection results	GACC Notice No. 259, issued in 2022
GACC Measures to Monitor Transit Goods	GACC Notice No. 260, issued in 2022
Administrative measures for inspection and quarantine of edible terrestrial animals supplied to Hong Kong, Mainland China and Macao	GACC Notice No. 266, issued in 2024