WORLD TRADE
ORGANIZATIONG/SG/Q2/CHN/4
17 October 2003
(03-5521)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE
AGREEMENT ON SAFEGUARDS ON INITIATION OF
AN INVESTIGATION AND THE REASONS FOR IT
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL
SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT
THEREOF CAUSED BY INCREASED IMPORTS
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)
OF THE AGREEMENT ON SAFEGUARDS
AND
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2
OF THE AGREEMENT ON SAFEGUARDS
Replies to Questions Posed by the UNITED STATES1
Regarding the Notifications of the PEOPLE'S REPUBLIC OF CHINA2
The following communication, dated 16 October 2003, has been received from the Permanent
Mission of the People's Republic of China.
_______________
Q1. According to information provided in  G/SG/N/6/CHN/1, G/SG/N/7/CHN/1 and
G/SG/N/11/CHN/1 (23 May 2002), China imposed provisional safeguards measures on nine
categories of steel products.  The measures were imposed for a duration of 180 days, beginningon 24 May 2002.
Have the provisional measures expired as scheduled?  For each of the nine categories,
please provide the dates on which the provisional measures expired and a citation to the public
record announcing the expiration of such measures.
                                                     
1 G/SG/Q2/CHN/3
2 G/SG/N/6/CHN/1-G/SG/N/7/CHN/1-G/SG/N/11/CHN/1 (23 May 2002) and G/SG/N/8/CHN/1-
G/SG/N/10/CHN/1 (5 November 2002)G/SG/Q2/CHN/4
Page 2
Reply
Yes.  China’s provisional safeguard measures on steel products expired on 9 November 2002.
For further information, please refer to the Notice No. 30/2002 of the former Ministry of Foreign
Trade and Economic Cooperation and the Notice No. 36/2002 of the General Administration ofCustoms.
Q2. According to the information provided in G/SG/N/8/CHN/1 and G/SG/N/10/CHN/1 (5
November 2002), Korea is listed as a supplier of  products subject to the definitive safeguard
measure imposed by China.  According to Annex II, Korea is listed as a developing country or
region to which all of the definitive safeguard measures would apply.
On what basis did China conclude that Korea was a developing country or region for
purposes of applying Article 9 of the WTO Agreement on Safeguards?  What criteria did China
consider in making this determination?
Reply
Traditionally we consider the Republic of Korea (ROK) as a developing country.
Q3. According to the information provided in G/SG/N/8/CHN/1 and G/SG/N/10/CHN/1
(5 November 2002), Chinese Taipei is listed as a supplier of at least three of the products subject
to the definitive safeguard measure imposed by China.  However, Chinese Taipei is not listed
among the Members included in the Annex II list of developing countries and regions to which
the safeguard measures would apply (nor as a developing country or region to which the
measures would not apply).
(a) Does China consider Chinese Taipei to be a developing country or region for purposes
of applying Article 9 of the WTO Agreement on Safeguards?
(b) If not, what criteria were considered by Chin a in making its determination that Chinese
Taipei should not be treated as a developing country or region?
Reply
Please refer to Paragraph 6, Section III of the Report of the Working Party on the Accession
of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
(“The representative of Chinese Taipei stated that his government would not claim any right
granted under WTO Agreements to developing country Members or to a Member in the process of
transforming its economy from a centrally-planned into a market, free-enterprise economy”)
Q4. The Slovak Republic was not included by China among the developing countries or
regions, listed in Annex 2 of G/SG/N/6/CHN/1, G/SG/N/7/CHN/1 and G/SG/N/11/CHN/1, withrespect to the provisional safeguards measures, but was included among such developing
countries or regions, in the list provided in Annex 2 of G/SG/N/8/CHN/1 and G/SG/N/10/CHN/1,
with respect to the definitive safeguards measures.
(a) Please explain why China changed its characterization of the Slovak Republic as a
developing country or region.G/SG/Q2/CHN/4
Page 3
(b) After the Slovak Republic accedes to the European Union, does China intend to
continue to exclude its imports from the application of the definitive safeguard
measure?  If not, why not?
Reply
 There is no ambiguity on this issue. In dealing with the provisional safeguard measures and
the definitive safeguard measures, Chinese investigation authorities have never changed its criteria
used. For detailed information, please refer to the Notices No. 30/2002 and No. 48/2002 published by
the former Ministry of Foreign Trade and Economic Cooperation (MOFTEC).
Q5. According to the information provided in Annex II of G/SG/N/8/CHN/1 and
G/SG/N/10/CHN/1 (5 November 2002), China is excluding certain developing countries and
regions from its definitive safeguard measures , even though they are not WTO Members.  We
note that paragraph 1of Article 9 of the WTO Agreement on Safeguards provides for an
exclusion from the measure for imports from developing country Members.
What is the WTO rationale for excluding imports from non-Members of the WTO from
the safeguards measures, while subjecting WTO Members to the measures?     
Reply
As the WTO Agreement on Safeguards does not provide any specific rules on the treatment of
non-WTO Members, it is our understanding that, on the basis of non-discrimination, a WTO Member
is free to determine how to deal with issu es regarding non-WTO Members in light of the
circumstances.
Q6. Article 6 of the Agreement on Safeguards states that provisional safeguard measures
“shall take the form of tariff increases to be promptly refunded if the subsequent investigation
referred to in paragraph 2 of Article 4 does not determine that increased imports have caused
or threatened to cause serious injury to a domestic industry.”
As noted, China’s May 2002 notification of the provisional safeguard measures stated
that it was imposing provisional measures on nine categories of steel products.3  C h i n a ’ s
November 2002 notification of the definitive sa feguard measures stated that it was imposing
definitive measures on five steel products.4  The November 2002 notifica tion further states, with
respect to each of these five products, that it had been concluded that increased imports had
caused serious injury to the domestic industry producing the like or directly competitive
products.  The notification does not contain any information as to whether determinations ofserious injury had been made with respect to any products apart from the five products on
which definitive safeguard measures were being proposed.
(a) With respect to the each of the steel products that were subject to the provisional
measure notified in May 2002, but not subject to the definitive measure notified inNovember 2002, did China’s competent author ities ever make any determination in the
                                                     
3 G/SG/N/6/CHN/1; G/SG/N/7/CHN/1; G/SG/N/11/CHN/1 (23 May 2002).  The nine categories of
products on which the provisional safeguard measures were proposed to be applied were: non alloy plates; nonalloy sheets and coils; electrical sheets; stainless steel pl ates and sheets; other non alloy steel strips; non alloy
wires; non alloy bars and rebars; non alloy sections; seamless pipes; welded pipes; and slabs.
4 G/SG/N/8/CHN/1; G/SG/N//10/CHN/1 (5 November 2002).  The five products listed are: non alloy
hot rolled sheets and coils; non alloy cold rolled sheets and coils; organic coated sheets; non-grain-oriented
electrical sheets; and stainless non alloy cold rolled sheets and coils.G/SG/Q2/CHN/4
Page 4
subsequent investigation as to whether increased imports of that product caused or
threatened to cause serious injury to a domestic industry?  If so, what were the results of
those determinations?
Reply
For products included in product scope of the provisional safeguard measures but not subject
to the definitive measures, detailed descriptions of the products and statements on whether they
caused serious injury can be found in the final determination of China’s steel safeguard measures.  For
relevant information please refer to the Notice No. 48/2002 published by the former Ministry of
Foreign Trade and Economic Cooperation (MOFTEC) on 19 November 2002.
(b) For each steel product, if any, subject to the May 2002 provisional measure as to which
China’s competent authorities did not make a determination in the subsequent
investigation that increased imports of that product caused or threatened to cause
serious injury to a domestic industry, did China refund the tariff increases under the
provisional measure, as required by Article 6 of the Agreement?  If not, how did Chinadisburse the provisional safeguards duties that were collected as to these products?  If
the duties were properly refunded, when di d China refund these tariff increases?  For
any such products where such tariff increases have not been refunded, please explain
why not, and when such refunds will be made.
Reply
Yes.  For those imported steel products which have been levied special tariff during the
application period of the provisional safeguard measures but are not subject to the definitive
measures, refund can be claimed according to the proceedings set out in relevant regulations.  Forfurther information please refer to the Notice No. 36/2002 published by China’s General
Administration of Customs on 19 November 2002.
(c) For each steel product, if any, subject to the May 2002 provisional measure as to which
China’s competition authorities did not make a determination in the subsequent
investigation that increased imports of that product caused or threatened to cause
serious injury to a domestic industry, please provide the amount of safeguards dutiesthat were collected, disaggregated by country of origin, or provide a citation to the
public record containing such information.
Reply
Please refer to Chinese Custom statistic for all relevant public information
__________