WORLD TRADE  
ORGANIZATION   
WT/DS437/2 
21 August 2012 
 (12-4544) 
 Original:   English 
  
 
UNITED STATES – COUNTERVAILING DUTY MEASURES ON  
CERTAIN PRODUCTS FROM CHINA 
 
 
Request for the Establishment of a Panel by China 
   The following communication, dated 20 August 2012, from the delegation of China to the Chairperson of the Dispute Settlement Body, is ci rculated pursuant to Article 6.2 of the DSU. 
 
_______________ 
 
 
On 25 May 2012, the People's Republic of China requested consultations with the 
United States of America pursuant to Article 4 of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes (the DSU) , Article XXIII:1 of the General Agreement on 
Tariffs and Trade 1994 (GATT 1994), and Artic le 30 of the Agreement on Subsidies and 
Countervailing Measures (the SCM Agreement).  Th is request for consultations concerned the 
preliminary and final counterva iling duty measures issued by the United States Department of 
Commerce (the "USDOC"), as described below. 
Consultations were held on 25 J une 2012 and 18 July 2012 with a view to reaching a mutually 
satisfactory solution.  These consultations clarified ce rtain issues pertaining to this matter, but failed 
to resolve the dispute.  Therefore, China respectfu lly requests, pursuant to Articles 4.7 and 6 of the 
DSU, Article XXIII:2 of the GATT 1994, and Article  30 of the SCM Agreement, that the Dispute 
Settlement Body ("DSB") establish a Panel to examine this matter.  China asks that this request be 
placed on the agenda of the DSB meeting to be held  on 31 August 2012.  China further requests that 
the Panel have the standard terms of referen ce, as set forth in Article 7.1 of the DSU. 
A. S
PECIFIC MEASURES AT ISSUE  
 This request for establishment of a panel c oncerns the preliminary and final countervailing 
duty measures identified in Appendix 1.1  These measures were issued by the USDOC.  The measures 
include the determination by the USDOC to initiate  the identified countervailing duty investigations, 
the conduct of those investigations, any preliminary or final countervailing duty  determinations issued 
in those investigations, any definitive countervailing duties imposed as a result of those investigations, 
as well as any notices, annexes, decision memorand a, orders, amendments, or other instruments 
issued by the United States in connection with  the countervailing duty measures identified in 
Appendix 1. 
                                                      
1 For ease of reference, China will use certain short names and abbreviations to refer to the individual 
investigations at issue.  Appendix 2 contains a table indicating the short names and abbreviations associated 
with each investigation.   WT/DS437/2 
Page 2  
 
   The measures at issue also include the "rebuttable presumption" established and applied by 
the USDOC, under which the USDOC considers majority government ownership of an enterprise 
sufficient to determine that an enterprise is a "pub lic body" within the meaning of Article 1.1 of the 
SCM Agreement, unless a party is able to demonstr ate that majority government ownership does not 
result in "control" of the enterprise.
2  (China hereafter refers to this measure as the "rebuttable 
presumption"). 
B. LEGAL BASIS OF THE COMPLAINT  
 China considers that the countervailing duty me asures specified above ar e inconsistent with 
the obligations of the United States under, inter alia,  Article VI of the GATT 1994, Articles 1, 2, 10, 
11, 12, 14, and 32 of the SCM Agreement, and Article 15 of the Protocol on the Accession of the 
People’s Republic of China  (the "Protocol of Accession"). 
1. "As Applied" Claims 
 China considers that the initiation and conduct of the identified countervailing duty 
investigations, as well as the countervailing dut y determinations, orders, and any definitive 
countervailing duties imposed pursuant thereto, are in consistent, at a minimum, with the obligations 
of the United States specified below. 
(a) In connection with the alleged provision of input goods for less than adequate 
remuneration: 
(1) Articles 11.1, 11.2, and 11.3 of the SCM Agreement, because the United 
States initiated countervailing duty inves tigations in respect of allegations 
that state-owned enterprises ("SOEs ") confer countervailable subsidies 
through their sales of inputs to dow nstream producers, in the absence of 
sufficient evidence in the petition to support an allegation that SOEs constitute "public bodies" within the meaning of Article 1.1(a)(1) of the SCM Agreement, and in the absence of a su fficient review of the petition by the 
USDOC in respect of this allegation;
3 
(2) Article 1.1(a)(1) of the SCM Agreem ent, because the USDOC incorrectly 
determined, or did not have a sufficient basis to determine, that certain SOEs 
are "public bodies" within the meaning of that provision;4 
                                                      
2 See, e.g., KASR I&D, pp. 42-44; SCASP I&D pp. 64-65; PG I&D pp. 67-69.  The USDOC has stated 
that this rebuttable presumption is "reflected" in th e "Preamble" to its countervailing duty regulations.  See 
KASR I&D, p. 42, citing Countervailing Duties; Final Rule,  63 Fed. Reg. 65,348 (November 25, 1998) ("CVD 
Preamble").  For this purpose, the CVD Preamble is he reby included as a measure at issue in this dispute. 
3 China limits this claim to the countervailing duty initiation determinations in Steel Wire, Steel 
Cylinders, Steel Wheels, Solar Panels , Wind Towers, and Steel Sinks.  These are the countervailing duty 
investigations that the USDOC initiated after the issuance of the Appellate Body Report in United States – 
Definitive Anti-Dumping and Countervailing Duties on Certain Products from China  (WT/DS379/AB/R) (11 
March 2011).  While China considers that the USDOC’s initia tion determinations prior to this date were also in 
error, China is limiting this claim to those initiation dete rminations concerning the alleged provision of inputs 
for less than adequate remuneration in which the USDOC acted in open disregard of the Appellate Body’s interpretation of the term "public body" in Article 1.1(a)(1) of the SCM Agreement. 
4 This claim arises in respect of  the determinations by the USDOC that certain SOEs provided inputs 
such as hot-rolled steel, steel wire rod, steel rounds and billets, stainless steel coil, caustic soda, primary 
aluminum, green tubes, zinc, and papermaking chemicals for less than adequate remuneration, in the following 
investigations: SPP, SLP, TBLG, KASR, OCTG, SWS, SG , WD, SCASP, PG, DP, AE, SWH, GSW, and SCY.   WT/DS437/2 
 Page 3 
 
 
  (3) Articles 11.1, 11.2, and 11.3 of th e SCM Agreement, because the USDOC 
initiated countervailing duty investigations in respect of the alleged provision 
of inputs for less than adequate remu neration, in the absence of sufficient 
evidence in the petition to support an al legation that any such subsidy would 
be specific under Article 2 of the SCM Agreement, and in the absence of a 
sufficient review of the petition by the USDOC in respect of this allegation;5 
(4) Article 2 of the SCM Agreement, be cause the USDOC failed to make a 
proper determination on the basis of  positive evidence that the alleged 
provision of input goods for less than adequate remuneration was specific to an enterprise or industry or gr oup of enterprises or industries;
6 
(5) Article 1.1(b) and Article 14(d) of the SCM Agreement, because the USDOC 
improperly found that the alleged provis ion of goods for less than adequate 
remuneration conferred a benefit upon the recipient, and improperly 
calculated the amount of any benef it allegedly conferred, including, inter 
alia, its erroneous findings that prevailing market conditions in China were 
"distorted" as the basis for rejecti ng actual transaction prices in China as 
benchmarks.7 
(b) In connection with the alleged provision of  land and land-use rights for less than 
adequate remuneration: 
(1) Article 2 of the SCM Agreement, be cause the USDOC failed to make a 
proper determination on the basis of  positive evidence that the alleged 
subsidy was specific to an enterprise or industry or to a group of enterprises 
or industries.8 
(c) In connection with export restraints allegedly maintained by China:9 
(1) Articles 11.1, 11.2, and 11.3 of th e SCM Agreement, because the USDOC 
initiated countervailing dut y investigations into these allegations; and 
(2) Article 1.1(a)(1) of the SCM Agreement, because the USDOC improperly 
determined that export restraints provi ded a "financial contribution" within 
the meaning of that provision. 
                                                                                                                                                                     
The claim also arises in respect of the preliminary determinations by the USDOC to the same effect in CSP, 
USWT, and SSI.    
5 This claim arises in respect of the inves tigations identified in footnote 4 above.   
6 This claim arises in respect of the inve stigations identified in footnote 4 above. 
7 This claim arises in respect of the investigati ons noted in footnote 4 above.  In none of the 
investigations at issue did the USDOC purport to rely upon Article 15(b) of the Protocol of Accession  as the 
basis for rejecting actual transaction prices in China as be nchmarks.  To the extent th at the United States claims 
otherwise, China considers that the USDOC acted  inconsistently with Article 15(b) of the Protocol of Accession  
by failing to make a proper determination of "special difficulties" as the basis for rejecting actual transaction 
prices in China as benchmarks. 
8 This claim arises in respect of the determin ations by the USDOC that producers of subject 
merchandise received land and land-use rights for less than adequate remuneration, in the following 
investigations: LTP, CA, SLP, OCTG, SWS, SCASP, PG, AE. 
9 These claims arise in respect of the determinati ons by the USDOC that export restraints allegedly 
maintained by the Government of China constitute a countervailable subsidy, in the following investigations: 
MCB, SCASP. WT/DS437/2 
Page 4  
 
  (d) In connection with all of the identified c ountervailing duty investigations in which the 
USDOC has issued a preliminary or final countervailing duty determination: 
(1) Article 12.7 of the SCM Agreement, b ecause the USDOC resorted to facts 
available, and used facts available,  including so-called "adverse" facts 
available, in manners that were inconsistent with that provision.
10 
2.  "As Such" Claims 
 China considers that the "rebuttable presump tion" established and applied by the USDOC in 
respect of whether SOEs can be classified as "public bodies" is, as such, inconsistent with 
Articles 1.1, 10, and 32.1 of the SCM Agreem ent, and Article VI of the GATT 1994.   
For these reasons, China considers that the measures specified above nullify and impair 
benefits accruing to China under the GATT 1994, the SCM Agreement, and the Protocol of 
Accession. 
Request for the Establishment of a Panel  
Accordingly, China requests pursuant to Article  XXIII of the GATT 1994, Articles 4 and 6 of 
the DSU, and Article 30 of the Agreement on Subs idies and Countervailing Measures, that the DSB 
establish a panel with the standard terms of reference as set out in Article 7.1 of the DSU. China asks 
that this request be placed on the agenda of the meeting of the DSB scheduled for 31 August 2012. 
 
 
_______________ 
 
                                                      
10 This claim arises in respect of each instance in  which the USDOC used f acts available, including 
"adverse" facts available, to support its findings of financial contribution, specificity, and benefit in the 
investigations and determinations identified in Appendix 1.    WT/DS437/2 
 Page 5 
 
 
  Appendix 1 
 
Investigation C-570-921 (" Thermal Paper" ) 
 
 Lightweight Thermal Paper From the People's Republic of China : Final Affirmative 
Countervailing Duty Determination, 73 Fe deral Register 57323 (2 October 2008). 
 
 Lightweight Thermal Paper From the People's Republic of China : Notice of Amended Final 
Affirmative Countervailing Duty Determination and Notice of Countervailing Duty Order, 73 
Federal Register 70958 (24 November 2008).  
Investigation C-570-931 ("Pressure Pipe" ) 
 
 Circular Welded Austenitic Stainless Pressure Pipe from the People's Republic of China : 
Final Affirmative Countervailing Duty Determin ation, 74 Federal Register 4936 (28 January 
2009).  
 Circular Welded Austenitic Stainless Pressure Pipe from the People's Republic of China : 
Countervailing Duty Order, 74 Federa l Register 11712 (19 March 2009). 
 
Investigation C-570-936 (" Line Pipe" ) 
 
 Certain Circular Welded Carbon Quality Steel  Line Pipe from the People's Republic of 
China : Final Affirmative Countervailing Duty De termination, 73 Fede ral Register 70961 (24 
November 2008). 
 
 Certain Circular Welded Carbon Quality Steel  Line Pipe from the People's Republic of 
China : Notice of Amended Final Affirmative C ountervailing Duty Determination and Notice 
of Countervailing Duty Order, 74 Fe deral Register 4136 (23 January 2009). 
 
Investigation C-570-938 ("Citric Acid" ) 
 
 Citric Acid and Certain Citrate Salts From the People's Republic of China : Final Affirmative 
Countervailing Duty Determination, 74 Fe deral Register 16836 (13 April 2009). 
 
 Citric Acid and Certain Citrate Salts From the People's Republic of China : Notice of 
Countervailing Duty Order, 74 Federa l Register 25705 (29 May 2009). 
 
Investigation C-570-940 ("Lawn Groomers" ) 
 
 Certain Tow Behind Lawn Groomers and Certain Parts Thereof from the People's Republic 
of China : Final Affirmative Countervailing Duty Determination, 74 Federal Register 29180 
(19 June 2009).  
 Certain Tow Behind Lawn Groomers and Certain Parts Thereof from the People's Republic 
of China : Countervailing Duty Order, 74 Federal Register 38399 (3 August 2009). 
 
Investigation C-570-942 ("Kitchen Shelving" ) 
 
 Certain Kitchen Appliance Shelving and Ra cks from the People's Republic of China : Final 
Affirmative Countervailing Duty Determination, 74 Federal Re gister 37012 (27 July 2009). 
 WT/DS437/2 
Page 6  
 
   Certain Kitchen Appliance Shelving and Racks from the People's Republic of China : 
Countervailing Duty Order, 74 Federa l Register 46973 (14 September 2009). 
 
Investigation C-570-944 ("OCTG" ) 
 
 Certain Oil Country Tubular Goods from the People's Republic of China : Final Affirmative 
Countervailing Duty Determination, Final Negativ e Critical Circumstances Determination, 74 
Federal Register 64045 (7 December 2009).  
 Certain Oil Country Tubular Goods from the People's Republic of China : Amended Final 
Affirmative Countervailing Duty Determinati on and Countervailing Duty Order, 75 Federal 
Register 3203 (20 January 2010).  
Investigation C-570-946 ("Wire Strand" ) 
 
 Pre-Stressed Concrete Steel Wire Strand from the People's Republic of China : Final 
Affirmative Countervailing Duty Determinati on, 75 Federal Register 28557 (21 May 2010). 
 
 Pre-Stressed Concrete Steel Wire Strand from the People's Republic of China : Notice of 
Amended Final Affirmative Countervailing Duty  Determination and Notice of Countervailing 
Duty Order, 75 Federal Register 38977 (7 July 2010). 
 
Investigation C-570-948 ("Steel Grating" ) 
 
 Certain Steel Grating from the People's Republic of China : Final Affirmative Countervailing 
Duty Determination, 75 Federa l Register 32362 (8 June 2010). 
 Certain Steel Grating from the People's Republic of China : Countervailing Duty Order, 75 
Federal Register 43144 (23 July 2010). 
Investigation C-570-950 ("Wire Decking" ) 
 
 Wire Decking from the People's Republic of China : Final Affirmative Countervailing Duty 
Determination, 75 Federal Re gister 32902 (10 June 2010).
11 
 
Investigation C-570-955 ("Magnesia Bricks" ) 
 
 Certain Magnesia Carbon Bricks From the People's Republic of China : Final Affirmative 
Countervailing Duty Determination, 75 Fe deral Register 4547 2 (2 August 2010). 
 Certain Magnesia Carbon Bricks from the People's Republic of China : Countervailing Duty 
Order, 75 Federal Register 57442 (21 September 2010).  
Investigation C-570-957 ("Seamless Pipe" ) 
 
 Certain Seamless Carbon and Alloy Steel Stand ard, Line, and Pressure Pipe from the 
People's Republic of China : Final Affirmative Countervailing Duty Determination, Final 
Affirmative Critical Circumstances Determinati on, 75 Federal Register 57444 (21 September 
2010). 
                                                      
11 The US International Trade Commission issued a negative final injury determination in the Wire 
Decking investigation.  The investigation therefore did not result in the imposition of a countervailing duty 
order.  However, the determination of the US Intern ational Trade Commission has been appealed to the US 
Court of International Trade.    WT/DS437/2 
 Page 7 
 
 
   Certain Seamless Carbon and Alloy Steel Stand ard, Line, and Pressure Pipe from the 
People's Republic of China : Amended Final Affirmative C ountervailing Duty Determination 
and Countervailing Duty Order, 75 Federa l Register 69050 (10 November 2010). 
 
Investigation C-570-959 ("Print Graphics" ) 
 
 Certain Coated Paper Suitable for High-Qua lity Print Graphics Using Sheet-Fed Presses 
From the People's Republic of China : Final Affirmative Counterva iling Duty Determination, 
75 Federal Register 59212 (27 September 2010). 
 Certain Coated Paper Suitable for High-Qua lity Print Graphics Using Sheet-Fed Presses 
From the People's Republic of China : Amended Final Affirmative Countervailing Duty 
Determination and Countervailing Duty  Order, 75 Federal Register 70201 
(17 November 2010). 
Investigation C-570-966 ("Drill Pipe" ) 
 
 Drill Pipe From the People's Republic of China : Final Affirmative Countervailing Duty 
Determination, Final Affirmative Critical Circ umstances Determination, 76 Federal Register 
1971 (11 January 2011). 
 Drill Pipe From the People's Republic of China : Countervailing Duty Order, 76 Federal 
Register 11758 (3 March 2011). 
Investigation C-570-968 ("Aluminum Extrusions" ) 
 
 Aluminum Extrusions From th e People's Republic of China : Final Affirmative Countervailing 
Duty Determination, 76 Federal Register 18521 (4 April 2011). 
 Aluminum Extrusions From th e People's Republic of China : Countervailing Duty Order, 76 
Federal Register 30653 (26 May 2011). 
Investigation C-570-971 ("Wood Flooring" ) 
 
 Multilayered Wood Flooring From the People's Republic of China : Final Affirmative 
Countervailing Duty Determination, 76 Fe deral Register 64313 (18 October 2011). 
 Multilayered Wood Flooring From the People's Republic of China : Countervailing Duty 
Order, 76 Federal Register 76693 (8 December 2011). 
 
Investigation C-570-974 ("Steel Wheels" ) 
 
 Certain Steel Wheels From the People's Republic of China : Initiation of Countervailing Duty 
Investigation, 76 Federal Register 23302 (26 April 2011). 
 Certain Steel Wheels From the People's Republic of China : Final Affirmative Countervailing 
Duty Determination, Final Affirmative Critical  Circumstances Determination, 77 Federal 
Register 17017 (23 March 2012).12 
Investigation C-570-976 ("Steel Wire" ) 
 
 Galvanized Steel Wire From the People's Republic of China : Initiation of Countervailing 
Duty Investigation, 76 Federal Register 23564 (27 April 2011). 
                                                      
12 On 17 April 2012, the US International Trade Commission issued a negative final injury 
determination in the Steel Wheels investigation.   WT/DS437/2 
Page 8  
 
   Galvanized Steel Wire From the People's Republic of China : Final Affirmative 
Countervailing Duty Determination, 77 Federal Register 17418 (26 March 2012).
13 
 
Investigation C-570-978 ("Steel Cylinders" ) 
 
 High Pressure Steel Cylinders From the People's Republic of China : Initiation of 
Countervailing Duty Investigation, 76 Federal Register 33239 (8 June 2011). 
 High Pressure Steel Cylinders From the People's Republic of China : Final Affirmative 
Countervailing Duty Determination, 77 Fe deral Register 26738 (7 May 2012).  
 High Pressure Steel Cylinders  From the People's Republic of China : Countervailing Duty 
Order, 77 Federal Register 37384 (21 June 2012). 
 
Investigation C-570-980 ("Solar Panels" ) 
 
 Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the 
People’s Republic of China : Initiation of Countervailing Duty  Investigation, 76 Federal 
Register 70966 (16 November 2011). 
 Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the 
People’s Republic of China : Preliminary Affirmative Counter vailing Duty Determination, 77 
Federal Register 17439 (26 March 2012). 
 
Investigation C-570-982 ("Wind Towers" ) 
 
 Utility Scale Wind Towers From the People’s Republic of China : Initiation of Countervailing 
Duty Investigation, 24 Federal Register 3447 (24 January 2012).  
 Utility Scale Wind Towers From the People's Republic of China : Preliminary Affirmative 
Countervailing Duty Determination, 77 Fe deral Register 33422 (6 June 2012). 
 
Investigation C-570-984 ("Steel Sinks" ) 
 
 Drawn Stainless Steel Sinks From the People’s Republic of China: Initiation of 
Countervailing Duty Investigation, 77 Federal Register 18211 (27 March 2012).  
 
 Drawn Stainless Steel Sinks  From the People's Republic of China : Preliminary Affirmative 
Countervailing Duty Determination, 77 Fe deral Register 4671 7 (6 August 2012). 
 
* * * 
 For the avoidance of doubt, the measures include  any modifications or amendments to the 
measures identified above, even if those modificatio ns or amendments are not specifically listed.   
 
 
                                                      
13 On 23 April 2012, the US International Trade Commission issued a negative final injury 
determination in the Steel Wire investigation.    WT/DS437/2 
 Page 9 
 
 
  Appendix 2 
 
OFFICIAL NAME SHORT FORM ACRONYM 
Lightweight Thermal Paper from the People's Republic 
of China Thermal Paper LTP 
Circular Welded Austenitic Stainless Pressure Pipe 
from the People's Republic of China Pressure Pipe SPP 
Certain Circular Welded Carbon Quality Steel Line 
Pipe from the People's Republic of China Line Pipe SLP 
Citric Acid and Certain Citrate Salts From the People's 
Republic of China Citric Acid CA 
Certain Tow Behind Lawn Groomers and Certain Parts 
Thereof from the People's Republic of China Lawn Groomers TBLG 
Certain Kitchen Appliance Shelving and Racks From 
the People's Republic of China Kitchen Shelving KASR 
Certain Oil Country Tubular Goods from the People's 
Republic of China OCTG OCTG 
Prestressed Concrete Steel Wire Strand From the 
People's Republic of China Wire Strand SWS 
Certain Steel Grating From the People's Republic of 
China Steel Grating SG 
Wire Decking from the People's Republic of China Wire Decking WD 
Certain Magnesia Carbon Bricks From the People's 
Republic of China Magnesia Bricks MCB 
Certain Seamless Carbon and Alloy Steel Standard, 
Line, and Pressure Pipe from the People's Republic of 
China Seamless Pipe SCASP 
Certain Coated Paper Suitable for High-Quality Print 
Graphics Using Sheet-Fed Presses  From the People's 
Republic of China Print Graphics PG 
Drill Pipe From the People's Republic of China Drill Pipe DP 
Aluminum Extrusions From the People's Republic of 
China Aluminum Extrusions AE 
Multilayered Wood Flooring From the People's 
Republic of China Wood Flooring MWF 
Certain Steel Wheels From th e People's Republic of 
China Steel Wheels SWH 
Galvanized Steel Wire From the People's Republic of 
China Steel Wire GSW 
High Pressure Steel Cylinders From the People's 
Republic of China Steel Cylinders SCY 
Crystalline Silicon Photovoltaic Cells, Whether or Not 
Assembled Into Modules, From the People’s Republic 
of China Solar Panels CSP 
Utility Scale Wind Towers From the People’s Republic 
of China Wind Towers USWT 
Drawn Stainless Steel Sinks From the People’s 
Republic of China Steel Sinks SSI 
 
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