Select Page

Foreign Trade Law of the People’s Republic of China

Foreign Trade Law of the People’s Republic of China

 

Chapter VII Foreign Trade Investigation

Article 37 In order to preserve the foreign trade order, the authority responsible for foreign trade and economic relations under the State Council may, on its own or jointly with other relevant departments under the State Council, conduct investigations in respect of the following matters in accordance with the laws and administrative regulations:

  1. The effect of imported or exported goods and technologies and international trade in services on domestic industries and their competitiveness;
  2. Trade barriers of other countries or regions;
  3. Matters requiring investigation in order for the authorities to make a determination as to whether to adopt antidumping, countervailing or protective measures, or other foreign trade remedies in accordance with the law;
  4. Evasion of trade remedies;
  5. Foreign trade matters that are relevant to national security or national interest;
  6. Matters requiring investigation in the execution of Article 7, Clause 29(2), Article 30, Article 31, Clause 32(3), and Clause 33(3) of this Law;
  7. Other matters affecting the foreign trade order that require investigation.

Article 38 The authority responsible for foreign trade and economic relations under the State Council is responsible for issuing a public statement signalling the commencement of a foreign trade investigation.

Foreign trade investigations may be conducted in the forms of written questionnaires, hearings, onsite investigations, entrusted investigations, and etc.

Based on the results of the investigation, the authority responsible for foreign trade and economic relations under the State Council shall put forward an investigation report or issue a ruling, and shall issue a public statement in this regard.

Article 39 The relevant institutions and individuals shall provide their cooperation and assistance in foreign trade investigations.

The authority responsible for foreign trade and economic relations under the State Council and other departments under the State Council and their staff have a duty of confidentiality with respect to any confidential information of the state or any commercial secrets made known to them during, or resulting from foreign trade investigations.

Chapter VIII Foreign Trade Remedies

Article 40 The State may adopt reasonable foreign trade remedial measures based on the results of foreign trade investigations.

Article 41 Where goods originated in other countries or regions have entered into the Chinese market by way of dumping at lower than their market value, and which caused substantial damage or threaten to cause substantial damage to established domestic industries, or constitute a substantial encumbrance with respect to the establishment of domestic industries, the State may adopt antidumping measures to eliminate or reduce the damage or the threat of damage, or the encumbrance in question.

Article 42 Where goods originated in other countries or regions are exported into a third country at lower than their market value, and which caused substantial damage or threaten to cause substantial damage to established domestic industries, or constitute a substantial encumbrance with respect to the establishment of Chinese domestic industries, and upon receiving an application from Chinese domestic enterprises in this regard, the authority responsible for foreign trade and economic relations under the State Council may enter into discussions with the third country, and requesting the third country to adopt adequate measures in this regard.

Article 43 Where goods imported into China have directly or indirectly received any form of targeted subsidy from the exporting country or region, and where such actions have caused substantial damage or threaten to cause substantial damage to Chinese domestic industries, or constitute a substantial encumbrance with respect to the establishment of Chinese domestic industries, the State may adopt countervailing measures to eliminate or to reduce the damage or threat of damage, or the encumbrance in question.

Article 44 Where a sharp increase in the volume of imported goods has caused serious harm or threatens to cause serious harm to domestic industries that manufacture the same kind of goods, or goods that compete directly with imported goods, the State may adopt necessary protective measures to eliminate or reduce the damage or threat of damage in question, and may provide necessary support to the domestic industries in question.

Article 45 Where an increase in services provided in China by service providers of other countries or regions has caused damage or threatens to cause damage to domestic industries providing the same kind of service or services that are in direct competition with the service provided by the foreign service providers, the State may adopt the necessary remedies to eliminate or to reduce the damage or threat of damage.

Article 46 Where a sharp increase in the volume of a type of imported goods in China is caused by import restrictions set by a third country, and such increase in volume has caused damage or threatens to cause damage to Chinese domestic industries, or constitutes an encumbrance with respect to the establishment of Chinese domestic industries, the State may adopt the necessary remedies to restrict the import of the type of goods in question.

Article 47 Where a country or region that has entered into an economic or trade treaty or agreement with the People’s Republic of China has breached the terms set out in the treaty or agreement, where such breach has caused the loss of, or damage to the interests that the People’s Republic of China would have enjoyed under the treaty or agreement, or where such breach prevents the realisation of the goals under the treaty or agreement, the Government of the People’s Republic of China has the right to demand that the relevant countries or regions adopt adequate remedies in this regard, and may suspend or stop fulfilling its related obligations under the relevant treaty or agreement.

Article 48 The authority responsible for foreign trade and economic relations under the State Council may conduct bilateral or multilateral foreign trade discussions, negotiations, and dispute resolutions in accordance with this Law and other related laws.

Article 49 The authority responsible for foreign trade and economic relations under the State Council shall establish an early warnings system as regards the import and export of goods and technologies, and international trade in services, in order to respond to sudden and abnormal events in foreign trade, and to preserve the stability of national economy.

Article 50 With respect to foreign trade remedies aimed at avoiding the application of this Law, the State may adopt the necessary anti-avoidance measures in this regard.
 

Skills

Posted on

2004-05-03