China-US Currency Subsidy Dispute from WTO Perspective: Review and Response

Abstract

Since the new countervailing regulations came into effect, the U.S. Department of Commerce has conducted various countervailing investigations on Chinese enterprises for undervalued currency. This paper analyzes the core legal issues of undervalued currency subsidies, determines whether the exchange rate is undervalued and determines the elements and specificity of subsidies according to the Agreement on Subsidies and Countervailing Measures (SCM Agreement) and the WTO dispute settlement judicial mechanism, and proposes countermeasures in the face of the U.S. Department of Commerce's investigation.