WORLD TRADE
ORGANIZATIONG/SG/Q1/CHN/7
15 September 2003
(03-4874)
Committee on Safeguards Original:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 12.6 OF THE AGREEMENT
Questions Posed by the UNITED STATES Regarding the Notifications of
the PEOPLE'S REPUBLIC OF CHINA1
The following communication, dated 8 September 2003, has been received from the
Permanent Mission of the United States.
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The United States thanks China for its notifications of its safeguard regulations, and of its
Provisional Rules on Initiation of Safeguards Investigations, and Provisional Rules for Public
Hearings in Safeguards Investigations.
Questions as to the Notified Regulations
1. Article 1 of the notified regulations specifies 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 notifiedregulations?
2. Article 8 of the notified regulations identifies certain relevant factors that its competent
authorities shall examine in making the determination of injury.  Are the factors listed in Article 8 the
only factors that China’s competent 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)?
3. 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?
4. 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 reasoned conclusions reached on all pertinent issues of fact and
law, as required by SGA Arts. 3.1 and 4.2(c)?
5. Will the “preliminary determination” referenced in Article 15 of the notified regulations and
the “final determination” referenced in Article 16 include the competent authority’s recommendation
                                                     
1 G/SG/N/1/CHN/2, 28 August 2002; G/SG/N/1/CHN/2/Suppl.1, 19 February 2003.
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/7
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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
threaten serious injury to the domestic industry?
6. 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 applying a quota the only types of safeguard relief available under Chinese laws, regulations or
other measures?
7. 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 safegu ards relief be increased 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.
8. 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.
9. To ensure consistency with SGA Arts. 7, 8 and 12, the third condition in Article 27 of the
notified regulations should more clearly reflect 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” notification 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 mustendeavour 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 co mply 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?
10. Article 32 of the notified regulations, like Ar ticle 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 authorities take such “corre sponding” measures, and what sort of measures
would they take?
Questions as to the Notified Provisional Rules
11. Please define the meaning of “other interested organization or person” as used in Article 7.G/SG/Q1/CHN/7
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12. 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 to respond 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?
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