. /.  WORLD TRADE  
ORGANIZATION  G/SG/Q1/CHN/23 
25 April 2005 
 (05-1677) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
 
Follow-Up Questions Posed by the EUROPEAN COMMUNITIES
 
Regarding the Notification of the PEOPLE'S REPUBLIC OF CHINA  
 
 
 The following communication, dated 21 April 2005, is being circulated at the request of the Delegation of the European Communities.  
_______________ 
  
The Regulations of the People's Republic of China on Safeguards
1 
 
1. Article 15 states that "The Ministry of Commerce may, on the basis of its findings, make a 
preliminary determination, or ma ke 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 direct ly to a final determina tion without having carried 
out an investigation? 
 
2. An earlier version of the safeguard legisla tion (G/SG/N/1/CHN/2) contained the following 
provision:    
Article 16  In the case where a preliminary det ermination establishes the existence of 
an increase in quantity of an imported 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 ve rsion of the legislation.  Can China clarify why 
this provision has been removed?  Is it the intention of China to c ontinue with an investigation after 
making a preliminary determination? 
 
The Foreign Trade Law of the People's Republic of China
2 
 
1. Could China please clarify what they would consider to be "discriminatory prohibitions, 
restrictions or other like measures" as mentioned un der Article 7?  Will this apply to measures taken 
in the context of trade defence instruments – i. e. anti-dumping, countervailing and safeguards?  
 
                                                      
1 G/SG/N/1/CHN/2/Suppl.3, dated 20 October 2004.  
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/23 
Page 2  
 
 2. Could China please clarify if Article 16 (7) is a special safeguard mech anism only applicable 
to infant industries?  Under which WTO provision would China intend to take such action?  Would 
the normal requirements (investigation into increased  imports, serious injury, causality, etc) for the 
imposition of safeguards be applicable before China would take action under this provision? 
 
3. Regarding the second paragra ph of Article 18 could China please clarify on what legal basis, 
and in what circumstances, it would "decide provisi onally to restrict or prohibit the import ….. of 
specific goods …….".  4. Could China please clarify what is intende d under Article 46 of the Foreign Trade Law?  
Does China intend to carry out an investigation before taking necessary remedies and what form 
would these remedies take?   5. Could China please clarify that the provisions of Article 68 are not intended to apply in the 
case of any safeguard measures it may impose?  Can China confirm that any safeguard measures it 
applies will be erga omnes  with only allowable exceptions i.e. developing countries?  
 
Continuing review of previously reviewed legislative notification
3 
 
1. The EU refers further to the question refe rred above and to the reply received from China 
(G/SG/Q1/CHN/22).  The EU remains concerned re garding this provision and the reply given by 
China.  While the EU appreciates China’s undertak ing to respect WTO rules it is concerned regarding 
the absence of any substantive and procedural ru les governing the application of this Article under 
domestic law.  Is it China’s intention to bri ng forward implementing rules for this provision? 
 Can China please clarify if the corresponding measur es which they envisage under this provision are 
limited to those foreseen under Paragraph 16.6 of th e Protocol of Accession of China to the WTO?  
 
__________ 
 
 
                                                     
 
3 G/SG/Q1/CHN/21