WORLD TRADE
ORGANIZATIONG/SG/Q1/CHN/10
7 October 2003
(03-5261)
Committee on Safeguards Original:  English
NOTIFICATIONS OF LAWS AND REGULATIONS UNDER
ARTICLE 12.6 OF THE AGREEMENT
Replies from CHINA to Questions
Posed by the UNITED STATES1
The following communication, dated 30 September 2003, from the Permanent Mission of the
People's Republic of China.
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Q1. Article 1 of the notified regulations speci fies that they are “formulated in accordance
with the Foreign Trade Law of the People’s Republic of China …”.  Does this article refer
exclusively to Law 19-586 Adopted 12 May 1994 by the Seventh Session of the Standing
Committee of the Eighth National People’s Congress?  If not, what other laws, regulations or
measures apply to the notified regulations?
Reply
Foreign Trade Law of the People’s Republic of China  refers to the Law adopted at the
Seventh Session of the Standing Committee of the Eighth National People’s Congress on12 May 1994 and promulgated by Decree No. 22 of the President of the People’s Republic of China in
1994.
Q2. Article 8 of the notified regulations identi fies certain relevant factors that its competent
authorities shall examine in making the determination of injury.  Are the factors listed inArticle 8 the only factors that China’s compet ent authorities will examine in their injury
determination?  How will China’s competent authorities ensure that “ all relevant factors of an
objective and quantifiable nature having a bearing on the situation of [the] industry” are
evaluated, as required by SGA Art. 4.2(a)?
Reply
The factors listed in Article 8 are the only factors that China’s competent authorities will
examine in their injury determination.  China’ s competent authorities will strictly comply with
procedure, and refer to SGA Art 4.2(a) to evaluate all relevant factors of an objective and quantifiablenature having a bearing on the situation of the industry.  Meantime, we need to take into account the
different situations of each case when making the injury determination.
                                                     
1 G/SG/Q1/CHN/7G/SG/Q1/CHN/10
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Q3. How will China implement the provisions specified in Article 13 of the notified
regulations regarding the treatment of confidential information and the provision of non-
confidential summaries?
Reply
The non-confidential summaries of the confidential information shall be made available to all
parties concerned according to the established procedure.  The information treated as confidential
shall not be disclosed without permission of the information provider.
Q4. Under Article 14 of the notified regulations, does the Ministry of Foreign Trade and
Economic Cooperation (MOFTEC)2 (or any other relevant competent authority) intend to
publish a report setting forth its findings and re asoned conclusions reached on all pertinent
issues of fact and law, as required by SGA Arts. 3.1 and 4.2(c)?
Reply
In the recent government restructuring, the MOFTEC and part of the SETC were merged into
the Ministry of Commerce, which is responsible for the affairs of safeguards.  The findings of an
investigation on the increase in quantity of imported products, injuries and the reasons thereof shall be
published by the Ministry of Commerce.
Q5. Will the “preliminary determination” referen ced in Article 15 of the notified regulations
and the “final determination” referenced in Article 16 include the competent authority’s
recommendation for, or application of, relief, or will they only refer to an affirmative or
negative determination as to an increase in the quantity of the product in question and as to
whether such increased imports cause or threa ten serious injury to the domestic industry?
Reply.
In the preliminary and final determinations, the investigation authorities shall make a
comprehensive statement regarding the investigation procedure, findings and their analysis as well as
issues pertaining to the application of law.
Q6. Unlike Article 17 of the notified regulations referencing provisional measures, Article 20
states that “safeguard measures may take the forms of tariff increases or quantitative
restriction, etc.”.  Is there any clear recitation in  Chinese laws, regulations or other measures of
all of the possible types of final safeguard relief available for application by the competent
authority(ies)?  Are raising tariffs and/or appl ying a quota the only types of safeguard relief
available under Chinese laws, regulations or other measures?
Reply.
Pursuant to the Regulations of the People’s Republic of China on Safeguard Measures , a
provisional safeguard measure may only take the form of tariff increases, while a definitive safeguard
measure may take such forms as tariff increases and quantitative restriction.
Q7. Article 21 of the notified regulations indicates that if, in determining final safeguards
relief, MOFTEC decides to limit the quantity of imports, MOFTEC shall make and publicize
that decision.  However, if MOFTEC “proposes”  that the final safeguards relief be increased
                                                     
2 We understand that MOFTEC is now called the Ministry of Commerce.  We nevertheless refer to
MOFTEC in these questions, consistent with the terminology used in the notified regulations.G/SG/Q1/CHN/10
Page 3
tariffs rather than a quota, this type of relief  must be proposed by MOFTEC to the State
Council Tariff Commission, which is charged with making the final determination of whether to
impose higher tariffs.  The Council’s decision is then publicized by MOFTEC.  On what basis
do the competent authorities treat these two types of relief differently?
What rules govern the final safeguard determinations by the State Council?  Are these
rules set forth in Chinese laws, regulations or other measures?  If so, where?
Please answer these questions with respect to  Article 30 of the notified regulations, as
well.
Reply
In cases where a definitive safeguard measure takes the form of quantitative restriction, the
decision shall be taken by the Ministry of Commerce.  If it takes the form of a tariff increase, the
decision shall be taken by the State Council Tariff Commission upon proposal by the Ministry of
Commerce.  These two different approaches are based on the division of functions among governmentdepartments.
Q8. Articles 22, 23, 25 and 32 of the notified regulations refer to “regions” as well as
“countries”.  By “regions”, does China intend to encompass anything other than the term
“[WTO] Member(s)” as used, e.g., in  SGA Art. 5.2?  Please explain.
Reply
“Region” refers to a separate customs area.
Q9. To ensure consistency with SGA Arts. 7, 8 and 12, the third condition in Article 27 of the
notified regulations should more clearly re flect conformity with the SGA’s multiple
requirements regarding the extension of a safeguard measure.  While the third condition listed
in Article 27 confirms that “foreign-related” no tification and consultation obligations must be
fulfilled prior to extending a safeguards measure, the language is not clear with respect to
exactly what is required when an extension is sought.  For example, consistent with SGA
Art. 8.1, the Member must endeavour to maintain a substantially equivalent level of concessions
and other obligations to that existing under GATT 1994.  Similarly, consistent with SGA
Art. 12.3, the Member must provide adequate opportunity for prior consultations with Members
having a substantial interest as exporters of the product concerned.  How does China intend to
comply fully with all of the requirements of the SGA with respect to extending a safeguards
measure in view of the ambiguous wording of  this article of the notified regulations?
Reply  
Article 27 of the Regulations is consistent with SGA Arts. 7.2, 8.1 and 12.3.
Q10. Article 32 of the notified regulations, like Article 7 of China’s Law 19-586, states that if
any country or region discriminatorily applies safeguard measures against Chinese exports,
China may retaliate or, in the words of Article 32, take “ corresponding measures.”  What, in
China’s view, would constitute “discriminatorily apply[ing] safeguard measures”?  Based on
what authority in the SGA would Chinese author ities take such “corresponding” measures, and
what sort of measures would they take?G/SG/Q1/CHN/10
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Reply
So far, China has recorded no case applying this article.
Q11. Please define the meaning of “other interested organization or person” as used in
Article 7.
Reply :
“Other interested organization or person’’ refers to organizations or individuals having
interests in a certain safeguard investigation other than the applicant for the safeguard investigation,
the government of the exporting country (region), the government of the country (region) of originand known exporters and importers.
Q12. Article 17 states that the purpose of the hearing is to allow parties to state their positions
and submit supporting materials, but that “no debate shall be held”.  This last statement
appears to conflict with SGA Art. 3 which requires that parties be given “… the opportunity torespond to the presentations of other parties”.  How does China propose to provide parties an
opportunity to rebut arguments raised by other parties, consistent with SGA Art. 3?
Reply
The purpose of the hearing is to allow the inves tigating authorities the opportunity to collect
further information and to allow the interested parties to present their views and submit evidence.
However, those who have different views regarding other parties’ presentations may, after the
hearing, submit their views in writing within the time limits set by investigation authorities.
Therefore, Article 17 does not deprive any party involved of the opportunity to present their viewsand evidence and hence is consistent with SGA Art.3.
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