WORLD TRADE
ORGANIZATIONG/SG/N/1/CHN/2/Suppl.2
15 April 2003
(03-2090)
Committee on Safeguards Original:  English
NOTIFICATION OF LAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TO SAFEGUARD MEASURES
THE PEOPLE'S REPUBLIC OF CHINA
Supplement
The following communication, dated 10 April 2003, has been received from the Permanent
Mission of the People's Republic of China.
_______________
With reference to Article 12.6 of the Agreement on Safeguards, I am writing to submit the
notifications as emailed to you from the People’s Republic of China of the departmental rules related
to the Agreement as follows:
1. Rules on Investigations and Determinations of Industry Injury for Safeguards;
2. Rules on Public Hearings with regard to Investigations of Injury to Industry.G/SG/N/1/CHN/2/Suppl.2
Page 2
RULES ON INVESTIGATIONS AND DETERMINATIONS
OF INDUSTRY INJURY FOR SAFEGUARDS
CHAPTER I.  GENERAL PROVISIONS
Article 1. These Rules are formulated in accordance with the Regulations of the People’s
Republic of China on Safeguards (hereinafter referred to as “Regulations on Safeguards”) for the
purpose of standardizing safeguard investigations of injury to industry and consequent determinations.
Article 2. These rules shall apply to activities carried out in accordance with Regulation on
Safeguards with regard to the application for initiation of safeguard investigations, as well assafeguard investigations of injury to industry and determinations.
Article 3. The State Economic and Trade Commission (hereinafter referred to as “SETC”) shall
be responsible for the safeguard investigations of  injury to industry and determinations.  The
safeguard investigations of injury involving agricultural products shall be conducted by SETC inconjunction with the Ministry of Agriculture.
Article 4. The Investigation Bureau of Injury to Industry of SETC shall undertake the
implementation of these Rules.
CHAPTER II.  DETERMINATION OF INJURY AND CAUSAL LINK
Article 5. The term “injury” means serious injury or threat of serious injury to a domestic
industry that produces like or directly competitive products due to the increase in volume of importedproducts.
The term “serious injury” means significant overall impairment on the situation of a domestic
industry.
The term “threat of serious injury” means serious injury that is clearly imminent and will
occur if no measures are taken.
Article 6. The following factors shall be examined in the determination of serious injury or
threat of serious injury caused to a domestic industry by the increase in volume of imported products:
(1) the increase in imports of the product concerned, including the rate and amount of the
increase of the imported products in absolute and relative terms;
(2) the share of the domestic market taken by the increased imports of the product concerned;(3) impact of the imported products on the situation of the domestic industry, including its output,
sales level, market share, productivity, utilization of capacity, profits and losses, and
employment, etc.;
(4) other factors causing injury to a domestic industry.
The determination of threat of serious injury shall be based on facts, by examination of the
factors such as exporting country’s production capacity, inventories, exporting capacity and
possibility of the continuation of export increase to China, etc., and not merely based on allegations,
conjectures or remote possibilities.G/SG/N/1/CHN/2/Suppl.2
Page 3
Article 7. While determining impacts of the increased imports on the situation of a domestic
industry, SETC shall, on the basis of positive evidence and through objective and comprehensive
considerations, evaluate all relevant quantifiable factors having a bearing on the situation of the
domestic industry, instead of making its determinati on on the basis of certain individual factors only.
Article 8.  When determining the causal link between the increase in volume of the imported
products and injury, SETC shall take into account not only the impacts of the increase in volume of
imports of the products concerned, but also other factors causing injury, which include:
(1) other factors having an effect on the price of the like product in the domestic market;
(2) changes in the demand of the products;
(3) changes in the patterns of consumption;(4) trade-restrictive practices of domestic and foreign producers and changes in conditions of
competition between domestic and foreign producers;
(5) the development in technology;(6) the export performance of the domestic like product;(7) other factors.
Injuries to domestic industry caused by factors other than an increase in imports shall not be
attributed to the increase of imports.
Article 9.  The term “like product” refers to the product that is identical to the imported product
under investigation, or in the absence of such product, another product that has characteristics most
closely resembling the imported product under investigation.
The term “directly competitive product” refers to the product which, although not being the
like product of the imported products under investigation, has similar use, significant degree ofsubstitutability, and in a directly competitive relationship with the imported product under
investigation.
Article 10.  The following factors may be examined while determining the like product and the
directly competitive product: physical characteristics, chemical properties, production equipment andprocess, use, substitutability, comments from consumers and producers, distribution channels, price,
etc..
Article 11.  In the determination of injury to industry, SETC may exclude the products under
investigation or part thereof that did not cause injury  to domestic industry.  To the extent to which the
product is excluded, it shall not be subject to safeguard measures.
Article 12.   When carrying out investigations of inju ry to industry and making determinations
thereof, SETC shall take into account of public interest and may examine the potential impact of
safeguard measures thereon.
SETC shall provide opportunities for users and consumers of the imported products to present
their comments and submit relevant evidence.G/SG/N/1/CHN/2/Suppl.2
Page 4
Article 13.  The period under safeguards investigations of injury to industry is normally the
3 years immediately prior to the initiation of an investigation.
CHAPTER III.  INVESTIGATION OF INJURY TO INDUSTRY
Article 14.  An applicant shall submit the application for safeguard investigation and relevant
supporting materials to SETC within 3 days followin g the issue date of the public notice on initiating
the safeguard investigation.
The supporting materials submitted by the applicant shall cover the following contents:
(1) information concerning increase (in absolute and relative terms) of imports in the last 3 to
5 years together with relevant evidence;
(2) share of the domestic market taken by the increased imports of the product concerned in the
last 3 to 5 years;
(3) impacts of the imported product on the situation of domestic industry in the last 3 to 5 years
together with relevant evidence, including th e impacts on output, sales level, market share,
productivity, utilization of capacity, profits and losses, and employment, etc.;
(4) the causal link between the increase of imported products and the injury to domestic industry
together with relevant evidence;
(5) other factors having effects on the domestic industry and relevant evidence.Article 15.   The applicant shall submit to SETC the plan of industry adjustment along with the
application.  The plan in question shall include the following contents:
(1)  description of the current situation of the domestic industry;(2)  description of the injury caused to the domestic industry by the increased imports;(3)  detailed suggestion on the imposition of safeguard measures;(4)  objective of adjustment of the domestic industry;(5) methods of adjustment of the domestic industry;
(6)  schedule of adjustment of the domestic industry;
(7)  other information which the applicant deems necessary to explain.Article 16.   The interested parties who apply for partic ipating in the safeguard investigation shall
submit an application in that regard and register with SETC within 20 days following the issue date of
the public notice on initiating the safeguards inves tigations; meanwhile, interested parties may present
comments on the injury to industry and the causality together with relevant evidence.
Article 17 .  “Interested parties” include:
(1) producers and exporters of foreign countries (regions), and domestic importers, or
associations of producers, exporters and importers of the product concerned, or other
organizations.G/SG/N/1/CHN/2/Suppl.2
Page 5
(2) the government as well as its representative of the country (region) of origin, the exporting
country (region) of the product under investigation;
(3) domestic producers and traders of the domestic like product, or associations of the domestic
producers and traders thereof, or other organizations;
(4) others.Article 18.   The interested party shall present a certificat e of identity in order to participate in the
investigation. If the interested parties are enterprises or other organizations, they shall present
certificate of registration, such as a business license, and a certificate of identity of their legalrepresentatives.
A proxy, who has been authorized to participate in the investigation, shall present a certificate
of identity and a Power of Attorney. If it is to authorize a lawyer as legal counsel, only Chinese law
firms and Chinese practicing attorneys can be appointed. Accordingly a Power of Attorney, a businesslicense of the law firm and the attorney’s practicing permit shall be presented.
Article 19.   A safeguard investigation of injury to industry conducted by SETC may be addressed
to, among others, domestic producers, importers, buyers, end-users, and foreign exporters and
producers, etc.
Article 20.   Where necessary, SETC may engage experts on different aspects such as the relevant
industry, accounting, economy and trade, and law for consultation.  Experts appointed shall bear
responsibility for maintaining confidentiality.
Article 21.   SETC will conduct the investigation of injury to industry by means of questionnaires,
samplings, public hearings, technical appraisal as well as on-the-spot verifications.
Article 22.   The questionnaires issued by SETC to interested parties include questionnaires for
domestic producers, importers and users, for foreign producers and exporters, or those of other types.
Article 23.   Interested parties shall return the questionnaire response in the form and within the
time limit specified in the questionnaire.  If there is need for an extension of the time limit, a written
application containing appropriate reasons shall be submitted to SETC 7 days before the deadline for
questionnaire response. It is for SETC to decide whether or not to grant such an extension.
Article 24.   SETC may carry out on-the-spot verification at the premises of interested parties’.
Prior to the on-the-spot verification, the interested parties shall be notified in advance of the main
purpose of, and general information on, the verification.
Article 25.   Upon request by an interested parties or where necessary for the investigations, SETC
may send its staff to the country (region) in question to verify information concerning productioncapacity, investment and expansion, inventories, origin of the product or transshipment, and the
relationship between enterprises, etc., provided that agreement is obtained from the country (region)
in question.
Article 26.  SETC may organize conference, by inviting other organizations and experts, to
appraise the adjustment plan of the domestic industry; issues to be appraised may include, among
others, the objectives and the measures specified in the plan and the feasibility.G/SG/N/1/CHN/2/Suppl.2
Page 6
Article 27.   SETC may require interested parties to submit any written information or to provide
supplementary written information as specified. Interested parties may also submit written materials
to SETC on their own initiative.
Article 28.   Upon request by an interested party or where SETC deems necessary, a public
hearing on injury to industry may be held. The hearing shall take place in accordance with the Rules
on Public Hearings with Regard to Investigations of Injury to Industry.
Article 29.   If an interested party considers that it is necessary to keep the information and
relevant evidence it provides on a confidential basis, it shall submit a non-confidential summary
thereof to SETC along with the confidential information, or submit respectively a confidential version
and a non-confidential version of the information in question.
The non-confidential summary or non-confidential version shall permit a reasonable
understanding of the substantial contents of the confidential information.  If the disclosure of the
substantial contents of the information is insufficient, SETC may require the interested party in
question to provide supplementary information and supporting materials.
Article 30 .  If an interested party fails to provide a non-confidential summary or non-confidential
version of the submitted materials and relevant evidence, or if the reason why a non-confidential
summary or non-confidential version is not po ssible is inadequate, SETC may disregard such
materials.  If SETC finds that it is not warranted to keep the materials confidential, it may require theinterested party in question to withdraw its request for confidential treatment.
Article 31.   An interested party shall provide accurate information and relevant materials during
the course of an investigation of injury to industry and before the determination.  In the case the
interested party fails to provide accurate information and relevant materials, or fails to providenecessary information within a reasonable time limit or otherwise significantly impedes the
investigation, SETC may make determination on the basis of the facts available and the best
information available.
Article 32.   Any interested party shall have access to the non-confidential information relating to
the investigation of the case in question at SETC after initiation of the safeguards investigation and
before publication of the final determination.  The interested parties may also have access to the non-confidential information within a reasonable pe riod after publication of the final determination.
Article 33.   In order to gain access to the non-confid ential information, an interested party shall
show the relevant certificate and go through procedural formalities in accordance with relevant
provisions.
Article 34.   An interested party may extract and copy non-confidential information, but shall not
take away the original non-confidential document from SETC.
SETC shall provide necessary facilities to the interested parties for access to non-confidential
information.
CHAPTER IV.  DETERMINATION OF INJURY TO INDUSTRY
Article 35.  SETC may make policy-related proposals on the adjustment of the domestic industry
in light of the adjustment plan raised by the do mestic industry and of the relevant information
obtained through investigation.G/SG/N/1/CHN/2/Suppl.2
Page 7
SETC shall evaluate the effect and duration of the proposed safeguard measures with a view
to facilitating the adjustment of the domestic industry.
Article 36.   SETC shall, on the basis of its preliminary findings, make a preliminary
determination on whether injury and the causal lin k between the increase in volume of imported
products and injury are established.
Article 37.  In the case where a preliminary determination establishes the existence of an increase
in quantity of an imported product, an injury to the domestic industry , and a causal link between the
increased imports and the injury, SETC shall continue the investigation on injury and the degree
thereof, and it shall, on the basis of the outcome of investigation, make final determination whether or
not injury and the causal link between injury and the increase in volume of imported products areestablished.
Article 38.  Where the duration of a safeguard measure has exceeded 1 year, SETC may,
according to the needs and development of the adjustment of domestic industry, advise to liberalize
the safeguard measures progressively.
Article 39.  Where the duration of a safeguard measure exceeds 3 years, SETC shall conduct a
mid-term review concerning the effects of the safeguard measures on domestic industry and the
situation of the adjustment of domestic industry. SETC shall make a determination in such a mid-term
review.
Article 40.  Procedures for mid-term reviews shall be subject to the relevant provisions with
regard to safeguard investigations.
Article 41.  SETC may, according to the situation of the domestic industry, present its views on
whether to withdraw or extend the safeguard measures 60 days prior to the date of the expiry of the
safeguard measures as specified in the final determination.
CHAPTER V.  SUPPLEMENTARY PROVISIONS
Article 42.   All documents and supporting materials submitted by interested parties to SETC shall
be in Chinese, and be made in 5 originals, together with three correspondent electronic copies
(computer floppy disc or optical disc).
Article 43.   The official language used in SETC’s investigations of injury to industry and its
determinations shall be the standard Chinese specified by the state administrative department oflanguage.  All documents, materials and informati on submitted by interested parties should be in
standard Chinese.  Materials in another language shall be submitted with the original text
accompanied by a Chinese translation, the latter document prevailing over the former.  Materials with
no Chinese translation will not be considered as valid and legally acceptable supporting materials.
Article 44.   SETC is responsible for the interpretation of these Rules.
Article 45.   These Rules shall become effective as of 15 January 2003.G/SG/N/1/CHN/2/Suppl.2
Page 8
RULES ON PUBLIC HEARINGS WITH REGARD TO
INVESTIGATIONS OF INJURY TO INDUSTRY
Article 1.   With a view to regulating the activities of public hearings in investigations of injury
to industry and to protecting the legal rights and in terests of interested parties with respect to the
public hearings, these Rules are formulated in accordance with the Regulations of the People’s
Republic of China on Anti-Dumping, the Regulations of the People’s Republic of China on
Countervailing Measures and the Regulations of the People’s Republic of China on Safeguards.
Article 2.   These rules shall apply to the public hearings held by the State Economic and Trade
Commission (hereinafter referred to as “SETC”) in the course of investigations on injury to industry
in anti-dumping, countervailing duty or safeguard cases.
Article 3.   The Investigation Bureau of Injury to Industry of SETC shall undertake the
organisation of public hearings on investigations of injury to industry.
Article 4.   The public hearings on investigations of injury to industry shall be conducted in
conformity with the principles of openness, fairness and equity, and shall be held in public except for
those hearings involving state or commercial secrets.
Article 5.   A public hearing on investigations of injury to industry may be held upon request for
it with respect to injury to industry and the causal link from the petitioners, defendants, or any other
interested parties subject to anti-dumping, countervailing duty or safeguard investigations, or where
SETC deems it necessary.
Article 6.   A written application for a public hearing shall be submitted to SETC where the
petitioners, defendants, or any other interested parties subject to anti-dumping, countervailing duty or
safeguard investigations apply for hearing.
The application for public hearings on investigations of injury to industry shall include
information such as the applicant’s name, address, relevant contact persons and contact details, the
subjects to be heard as well as their facts and grounds.
Article 7.   SETC shall organise a public hearing in respect of investigations of injury to industry,
and shall notify relevant interested parties of information in that regard such as the decision to hold apublic hearing, the subjects to be heard, the time and place of the hearing, and relevant requirements,
by means of a public notice or written notices 20 days before commencement of the hearing.
Article 8.   Interested parties shall, within 15 days following the date of publication of the notice
or issue of written notices for the public hearing on investigations of injury to industry, register with
SETC in accordance with the specified requirements and submit a summary of the presentation and
relevant supporting materials for the public hearing, which shall be in the common language and bemade in 10 originals.
Article 9.   The parties with respect to the public hearing are those who have registered with
SETC for participating in the public hearing, including the petitioners for anti-dumping,
countervailing duty or safeguard investigations, the defendants, and any other interested parties.
Article 10.  The parties with respect to the public hearing may apply for postponement of the
hearing 10 days before the hearing where justified; it shall be for SETC to decide whether to allow the
postponement.G/SG/N/1/CHN/2/Suppl.2
Page 9
Article 11.   In normal circumstances a public hearing is presided by 3 to 5 hearing officers, of
whom one acts as the chief hearing officer.
Article 12.   In any of the following circumstances, a hearing officer of the public hearing shall
voluntarily withdraw from holding the hearing, while  any interested parties are entitled to require the
withdrawal of the said officer:
(1) where the hearing officer is a close relative of the legal representative of any interested parties
or other authorised representative of any interested parties of the case in question;
(2) where the hearing officer has a specific interest in the case in question;(3) where the hearing officer is involved in certa in other relations with any interested parties,
which may prejudice a fair hearing.
Where an interested party requires the withdrawal of a hearing officer, the request shall be
made in a written form together with an explanati on of the reasons thereof.  It shall be for SETC to
decide whether or not to conduct the withdrawal of the officer concerned.
Article 13.   The hearing officers shall exercise the following functions and powers during the
hearing:
(1) to chair the hearing;(2) to identify the interested parties or  their representatives;
(3) to make enquiries to the parties;
(4) to decide whether to allow the parties to submit supplementary evidence and whether to
conduct an appraisal of the evidence that has been presented;
(5) to decide on the suspension, postponement or termination of the hearing;
(6) to ensure that the hearing is properly conducted, and to prevent or eliminate any behaviour
that contravenes the proper conduct of the hearing;
(7) to decide on other matters during the course of the hearing.
Article 14.   The legal representative of the parties or the person mainly  responsible for the parties
may participate in the hearing by himself.  The parties in question may also empower an authorised
representative to participate in the hearing.  Wher e an authorised representative participates in the
hearing, a Power of Attorney with respect to the he aring shall be submitted to SETC at the time when
the authorised representative registers with SETC for the hearing.
Article 15.   The parties with respect to the public hearing shall undertake the following
obligations:
(1) to arrive in time at the specified place for the hearing;(2) to conform to the rules of the hearing and to  follow the instructions of the hearing officers;
(3) to make truthful reply to the enquiry addressed by the hearing officers;G/SG/N/1/CHN/2/Suppl.2
Page 10
(4) to undertake the responsibility of providing evidence to support the arguments that have been
submitted.
Article 16.   Prior to the commencement of the public hearing, the hearing officers shall firstly
identify the interested parties and the qualification of the authorised representative, set out the rules of
the hearing, and inform the interested parties of their rights and obligations.
Article 17.   The public hearing shall be conducted in accordance with the following procedure:
(1) the chief hearing officer announces the commencement of the hearing, and presents the
background to the case;
(2) the applicant presents the facts and grounds on which the application for the public hearing is
based;
(3) the parties make their presentations;(4) the parties make their final statements;(5) the chief hearing officer announces the closure of the hearing.
Article 18.   Authorities of anti-dumping, countervailing duty and safeguard investigations of
injury to industry shall collect further information at the hearing, and provide the interested parties
with the opportunity to present thei r views and submit supporting materials.
Article 19.   Presentations at the public hearing shall be recorded by a written transcript which
shall be signed or sealed by the interested parties.  In the circumstances where a party refuses to sign
or seal the transcript, the hearing officers shall reco rd such a fact into the written transcript of the
hearing.
Article 20.   A written version of the oral presentations made by the parties at the public hearing
shall be submitted to SETC within 10 days after the date of the completion of the hearing and shall be
regarded as the prevailing materials.  Relevant supplementary supporting materials, if any, shall alsobe submitted to SETC within 10 days after the date of the completion of the hearing.
Article 21.   In any of the following circumstances, the public hearing shall be suspended:
(1) the applicant of the hearing fails to participate in the hearing due to force majeur e;
(2) other circumstances justifying the suspension of the hearing.Article 22.   Where the reason for the suspension of the hearing ceases to exist, the hearing shall
be resumed.
Article 23.   In any of the following circumstances, the public hearing shall be terminated:
(1) the applicant of the hearing has withdrawn its application;
(2) the anti-dumping, countervailing duty or sa feguard investigation has been terminated;
(3) other circumstances justifying the termination of the hearing.G/SG/N/1/CHN/2/Suppl.2
Page 11
Article 24.   Where any of the circumstances for suspending or terminating the public hearing as
provided in Article 21 and Article 23 exist, it shall be for SETC to decide whether or not to suspend or
terminate the hearing in the case where the hearing officers have been not yet appointed; after the
hearing officers are appointed, it shall be for them to make a joint decision thereon.
Article 25.   SETC shall be responsible for the interpretation of these Rules.
Article 26.   These Rules shall enter into force on 15 January 2003. Rules on Public Hearings with
Regard to Determinations of Injury to Industry of the State Economic and Trade Commission of the
People’s Republic of China, promulgated by SETC on 27 October 1999, shall be repealed
simultaneously.
__________