Author
Prof Liu Xuehong
Organisation/Institution
East China University of Political Science and Law
Country
CHINA
Panel
International Law
Title
Towards a New Generation of International Subsidy Rules and China’s Response
Abstract
Despite there exists international rules on subsidy measures in the WTO, a subsidy war between leading powers is emerging in many strategic fields nowadays. Subsidy war is undoubtedly destructive to fair competition, the global economy, and trade cooperation. Taking account of the “Thucydides trap” between China and the US, it is significant to promote the consensus between Eastern and Western countries to develop new international subsidy rules. Although WTO members have not yet agreed on updated disciplines on subsidies, new subsidy rules are already emerging in some new free trade agreements (FTAs) such as the EU’s FTAs and the US’s FTAs. The new trend indicates that a new generation of international subsidy rules will be gradually shaped in the near future. This research will study the trend of the new generation of subsidy rules and the response of China with normative and empirical methods. It argues, though some politicization factor and self-interest appeal exist therein, certain rules in the EU and US FTAs serve as good models for future subsidy regulations. Those rules are deemed more strict, specific, and comprehensive, serving additional functions beyond ensuring fair trade alone, such as leveling the playing field and addressing the overcapacity of products. The research will elaborate that the rationale of the new rules should be to strike a balance between individual government’s power to pursue its strategies with subsidy tool and the need to ensure fair competition among countries and sustainable development as well. This research will also explore the response of China and offer some suggestions for better engagement in the development of new subsidy rules.
Biography
Dr. Liu Xuehong is currently an associate professor at East China University of Political Science and Law in Shanghai, China. Her research mainly focuses on WTO Law, treaty law, and competition law. She has published articles in leading Chinese legal journals on topics such as competition neutrality, governance of state-owned enterprises and treaty interpretation. The courses Dr. Liu has taught include International Economic law, Chinese Economic Law and Chinese Competition Law. Dr. Liu had internship at the WTO in 2015 for the WTO Doctoral Program. Her papers have been presented at various international law seminars, including the Biennial Conference of the Asian Society of International Law, the North American Biennial Conference on International Economic Law, and the International Investment Law Seminar at the University of Rennes of France. She also works as a part-time lawyer and provides counsel to Chinese government agencies and enterprises on legal issues related to foreign affairs.
