WORLD TRADE  
ORGANIZATION  G/SG/Q1/CHN/24 
24 October 2005 
 (05-4896) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
 
Replies to Follow-Up Questions Posed by the EUROPEAN COMMUNITIES
1 
Regarding the Notification of the PEOPLE'S REPUBLIC OF CHINA2 
 
 
 The following communication, dated 21 October 2005, is being circulated at the request of the Delegation of the People's Republic of China.  
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The Regulations of the People's Republic of China on Safeguards 
  
Q1.  Article 15 states that "The Ministry of Co mmerce may, on the basis of its findings, make 
a preliminary determination, or make a final determination directly …."   
 
The text underlined has been added since the original version of this legislation.  Could China 
confirm that it is not intended that they would move directly to a final determination without 
having carried out an investigation? 
 
Reply  
 
 In accordance with this legislation, the investigating authority should carry out an 
investigation before making prelimin ary and final determination.  Th is article is compatible with 
WTO rules.  
Q2.  An earlier version of the safeguard legislation (G/SG/N/1/CHN/2) contained the 
following provision:   
 
Article 16 In the case where a preliminary determination establishes the existence 
of an increase in quantity of an importe d product, an injury, and a causal link 
between the two, MOFTEC and SETC shall continue their investigations, and shall 
on the basis of the findings of such investigations make a final determination 
which shall be published by MOFTEC. 
 This provision is no longer included in the current version of the legislation.  Can China clarify 
why this provision has been removed?  Is it the intention of China to continue with an 
investigation after making a preliminary determination?  
                                                     
 
1 G/SG/Q1/CHN/23 
2 G/ADP/N/1/CHN/2/Suppl.4 -G/SCM/N/1/CHN/1/Suppl.4 -G/SG/N/1/CHN/2/Suppl.4, dated 
1 December 2004 G/SG/Q1/CHN/24 
Page 2  
 
  
Reply
  
  The current provision is more accurate a nd better in line with the WTO Agreement on 
Safeguards.  After the preliminary determination,  the investigating authority would continue the 
investigation until the fina l determination is made. 
 
The Foreign Trade Law of the People's Republic of China 
 
Q1.  Could China please clarify what they woul d consider to be "discriminatory prohibitions, 
restrictions or other like measures" as mentioned under Article 7?  Will this apply to measures 
taken in the context of trade defence instru ments – i.e. anti-dumping, countervailing and 
safeguards?  
 
Reply
  
 
 Article 7 is an Article that remains the same  as the 1994 version.  This provision reflects the 
principle of non-discrimination adopted in China’s fore ign trade policy.  In application of this Article, 
China abides by the WTO rules in case that other parties involve are WTO Members.  
 
Q2.  Could China please clarify if Article 16 (7) is a special safeguard mechanism only 
applicable to infant industries?  Under which WTO provision would China intend to take such 
action?  Would the normal requirements (inves tigation into increased imports, serious injury, 
causality, etc) for the imposition of safeguards  be applicable before China would take action 
under this provision?  
 Reply
  
  In application of Article 16(7), China will abide by the requirements of Article 18 of 
GATT1994.  
Q3.  Regarding the second paragraph of Article 18 could China please clarify on what legal 
basis, and in what circumstances, it would "deci de provisionally to restrict or prohibit the 
import ….. of specific goods …….". 
 
Reply
  
 
 The provisional measures are applied when some  specific circumstance exists and the State 
Council need to restrict or prohibit the import or export of some specific goods in a period of time.  The State Council will terminate such measures when  the specific circumstan ce ceases to exist.  
Measures taken under this paragraph must (1) be with in the scope of Article 16 and Article 17; (2) be 
approved by the State Council.    Q4.  Could China please clarify what is intended under Article 46 of the Foreign Trade Law?  Does China intend to carry out an investigatio n before taking necessary remedies and what 
form would these remedies take?  
 
Reply
  
 
 The initiation of Article 46 is to prevent from injuries caused by trade diversion as a result of 
restriction measures taken by other countries. In  taking measures under this Article, China will abide 
its responsibilities under international c onventions to which it is a party. 
   G/SG/Q1/CHN/24 
 Page 3 
 
 
 Q5.  Could China please clarify that the provisions of Article 68 are not intended to apply in 
the case of any safeguard measures it may im pose?  Can China confirm that any safeguard 
measures it applies will be erga omnes  with only allowable exception s i.e. developing countries?  
 
Reply   
 
 China will abide by its international res ponsibilities in applying safeguard measures.  
 
 
Continuing review of previously reviewed legislative notification 
 
Q1.  The EU refers further to the question referred above and to the reply received from China (G/SG/Q1/CHN/22).  The EU remains concerned regarding this provision and the reply given by China.  While the EU appreciates Ch ina’s undertaking to respect WTO rules it is 
concerned regarding the absence of any substantive and procedural rules governing the 
application of this Article under domestic law.   Is it China’s intention to bring forward 
implementing rules for this provision? 
 
 Can China please clarify if the corresponding  measures which they envisage under this 
provision are limited to those foreseen under Paragraph 16.6 of the Protocol of Accession of China to the WTO?  
 
Reply
  
  Up to now, China has no implementing rules fo r the mentioned provision; neither does China 
have any cases relating to that provision. 
  
 Article 6 of The Foreign Trade Law of the People’s Republic of China states that:  “The People’s Republic of China, in respect of the Forei gn Trade, in accordance with international treaties 
or agreements to which the People’ s Republic of China is a contracti ng party or acceding party, grants 
the other contracting parties or acceding par ties the most-favoured-nation treatment, national 
treatment or other treatments, or on the principles of mutual advantage and reciprocity, grants the 
other party the most-favoured-nation treatment, nationa l treatment or other treatments”.  Article 7 of 
The Foreign Trade Law of the People’s Republic of Ch ina states that:  “In the event that any country 
or region applies discriminatory prohibitions, restri ctions or other like measures against the People’s 
Republic of China in respect of trade, the Pe ople’s Republic of China may, depending on actual 
circumstances, take countermeasures against the aforesaid country or region”.  Article 31 of The Regulations of the People’s Republic of China on Safeguards is embodiment of the principle of 
reciprocity stated in the Article 7 of The Forei gn Trade Law of the People’s Republic of China in 
safeguard area.   
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