WORLD TRADE
ORGANIZATIONG/SG/Q2/CHN/3
9 October 2003
(03-5337)
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
Questions Posed by the UNITED STATES
Regarding the Notification of the PEOPLE'S REPUBLIC OF CHINA1
The following communication, dated 6 October 2003, has been received from the Permanent
Mission of the United States.
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1. 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, beginning on24 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.
2. According to the information provided in G/SG/N/8/CHN/1-G/SG/N/10/CHN/1
(5 November 2002), Korea is listed as a supplier of products subject to the definitive safeguard
                                                     
1 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/3
Page 2
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 inmaking this determination?
3. According to the information provided in G/SG/N/8/CHN/1-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 China in making its determination that Chinese Taipei
should not be treated as a developing country or region?
4. 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-G/SG/N/11/CHN/1, with respect to the
provisional safeguards measures, but was included among such developing countries or regions, in thelist 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.
(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?
5. According to the information provided in Annex II of G/SG/N/8/CHN/1-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 9of 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?
6. 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.
2  China’s November 2002
notification of the definitive safeguard measures stated that it was imposing definitive measures on
                                                     
2 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.G/SG/Q2/CHN/3
Page 3
five steel products.3  The November 2002 notification 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 of seri ous 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 in November 2002,
did China’s competent authorities ever make any determination in the 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?
(b) For each steel product, if any, subject to the May 2002 provisional measure as to which of
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 China disburse the provisionalsafeguards duties that were collected as to these products?  If the duties were properly
refunded, when did 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.
(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 duties that were collected,
disaggregated by country of origin, or provide a citation to the public record containing suchinformation.
__________
                                                     
3 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 an d coils; organic coated sheets; non-grain-oriented
electrical sheets; and stainless non alloy cold rolled sheets and coils.