WORLD TRADE  
ORGANIZATION   
WT/DS437/1 
G/L/988 
G/SCM/D90/1 30 May 2012 
 
 
(12-2827) 
 Original:   English 
  
 
UNITED STATES – COUNTERVAILING DUTY MEASURES ON  
CERTAIN PRODUCTS FROM CHINA 
 
Request for Consultations by China 
 
 
 The following communication, dated 25 May 2012, from the delegation of China to the 
delegation of the United States and to the Chairperson of the Dispute Settlement Body, is circulated in 
accordance with Article 4.4 of the DSU.  
_______________ 
 
 
My authorities have instructed me to request  consultations with the Government of the 
United States pursuant to Article 4 of the Unde rstanding 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 Article 30 of the Agreement on Subsidies and Countervailing 
Measures (the SCM Agreement). 
This request concerns the measures identified in  Part A below.  The legal basis for this 
complaint is set forth in Part B below.   
A. S
PECIFIC MEASURES AT ISSUE  
This request for consultations concerns th e preliminary and final countervailing duty 
measures identified in Appendix 1.1  These measures were issued by the United States Department of 
Commerce (the "USDOC").  The measures include th e determination by the USDOC to initiate the 
identified countervailing duty investig ations, the conduct of those inv estigations, any preliminary or 
final countervailing duty determinati ons issued in those investigations, any definitive countervailing 
duties imposed as a result of those investigati ons, as well as any notices, annexes, decision 
memoranda, orders, amendments, or other instrument s issued by the United States in connection with 
the countervailing duty measures identified in Appendix 1. 
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 
                                                      
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/DS437/1 
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  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 measu res specified above are 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 c onduct 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 in put 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 inv estigations in respect of allegations that state-owned 
enterprises ("SOEs") confer countervailable s ubsidies through their sales of inputs to 
downstream producers, in the absence of su fficient 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 sufficient review of 
the petition by the USDOC in respect of this allegation;3 
(2) Article 1.1(a)(1) of the SCM Agreement, because the USDOC incorrectly 
determined, or did not have a sufficient b asis to determine, that certain SOES are 
"public bodies" within the meaning of that provision;4 
(3) Articles 11.1, 11.2, and 11.3 of the SC M Agreement, because the USDOC initiated 
countervailing duty investigations  in respect of the alleged provision of inputs for less 
than adequate remuneration, in the absence of sufficient evidence in the petition to 
                                                      
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 initiation determinations prior to this date were also 
in error, China is limiting this claim to those initiation determinations 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, and GSW.  The 
claim also arises in respect  of the preliminary determinations by the USDOC to the same effect in SCY and 
CSP.     WT/DS437/1 
 G/L/988 
 G/SCM/D90/1 
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  support an allegation that any such subsid y 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, because the USDOC failed to make a proper 
determination on the basis of positive evid ence that the alleged provision of input 
goods for less than adequate remuneration w as specific to an enterprise or industry or 
group 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 provisi on of goods for less than adequate 
remuneration conferred a benefit upon the recipient, and improperly calculated the 
amount of any benefit allege dly conferred, including, inter alia,  its erroneous findings 
that prevailing market conditions in China were "distorted" as the basis for rejecting 
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, because the USDOC failed to make a proper 
determination on the basis of positive eviden ce 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 the SC M Agreement, because the USDOC initiated 
countervailing duty investigations  into these allegations; and 
(2) Article 1.1(a)(1) of the SCM Agreement,  because the USDOC improperly determined 
that export restraints provided  a "financial  contribution" within the meaning of that 
provision. 
(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: 
                                                      
5 This claim arises in respect of the investigations id entified in footnote 4 above, plus USWT and SSI.   
6 This claim arises in respect of the investigations noted 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/DS437/1 
G/L/988 G/SCM/D90/1 
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  (1) Article 12.7 of the SCM Agreement, because 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 presumpti on" 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.   
China reserves the right to raise additional cl aims and legal matters regarding the above-
mentioned measures during the course of the consultations. 
China looks forward to receiving the reply of the Government of the United States to this 
request and to setting a mutually conv enient date for consultations.   
 
 
_______________ 
 
 
                                                      
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/DS437/1 
 G/L/988 
 G/SCM/D90/1 
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  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 Pi pe from the People's Republic of China : 
Final Affirmative Countervailing Duty De termination, 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). 
 Certain Kitchen Appliance Shelving and Racks from the People's Republic of China : 
Countervailing Duty Order, 74 Federa l Register 46973 (14 September 2009). WT/DS437/1 
G/L/988 G/SCM/D90/1 
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  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). 
 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). 
                                                      
11 The U.S. 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 U.S. International Trade Commission has been appealed to the U.S. 
Court of International Trade.    WT/DS437/1 
 G/L/988 
 G/SCM/D90/1 
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  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 th e People's Republic of China : Initiation of Countervailing 
Duty Investigation, 76 Federal Register 23564 (27 April 2011). 
 Galvanized Steel Wire From the People's Republic of China : Final Affirmative 
Countervailing Duty Determination, 77 Federal Register 17418 (26 March 2012).13 
                                                      
12 On 17 April 2012, the U.S. International Trade Commission issued a negative final injury 
determination in the Steel Wheels investigation.   WT/DS437/1 
G/L/988 G/SCM/D90/1 
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  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).  
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). 
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).  
* * * 
 For the avoidance of doubt, the measures incl ude any modifications or amendments to the 
measures identified above, even if those modifications  or amendments are not specifically listed.   
 
 
                                                                                                                                                                     
13 On 23 April 2012, the U.S. International Trade Commission issued a negative final injury 
determination in the Steel Wire investigation.    WT/DS437/1 
 G/L/988 
 G/SCM/D90/1 
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  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 the People's Republic 
of China Steel Wheels SWH WT/DS437/1 
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  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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