SUNSET REVIEW: CHINA’S LAW, PRACTICE AND VIEWS

1. SUNSET REVIEW: CHINA’S LAW, PRACTICE AND VIEWS WANG Shichun Director General, BOFT Ministry of Commerce, China

2. Sunset Review under the WTO Agreement • Before the Uruguay Round • After the Uruguay Round • Article 11.3 of ADA

3. Sunset Review under China’s Law • The Antidumping Regulation Article 48: sunset review • The Antidumping Regulation Article 49-52: general provisions on all types of reviews • So far, no ministerial rules specifically on sunset issued by MOFCOM • Sunset procedures are mainly in reference to those for original antidumping investigations

4. China’s Antidumping Sunset Review Practice and Experience • China’s Practice on Sunset Review: 3 cases so far (3 products, involving 4 countries) • •       newsprint (determined) • •       polyester film (pending) • •  cold-rolled stainless steel sheets (pending)

5. China’s Antidumping Sunset Review Practice and Experience (cont’d) • Newsprint Case • Original investigation initiated on 10 Dec. 1997 • Preliminary determination made on 9 July 1998 • Final determination made on 3 June 1999 • Sunset review initiated on 1 July 2003 • Sunset final determination made on 30 June 2004

6. China’s Antidumping Sunset Review Practice and Experience (cont’d) 3. Valuable Experience from Newsprint Case • Actively draw upon other countries’ legislation and practice and combine them with China’s law and practice • Conduct sunset reviews in strict accordance with the ADA and China’s Antidumping Regulation • Believe in rigorous and prudent sunset investigations, not instruments for extending antidumping measures

7. China’s Practice in Responding to Foreign Sunset Review Proceedings • Since 1995, China has been the world’s No.1 target of antidumping investigations. • Chinese exporting firms are tacking with all kinds of reviews, including sunset review in different countries. • Regrettably, protracted antidumping measures and huge economic losses are results in most cases.

8. China’s Practice in Responding to Foreign Sunset Review Proceedings (cont’d) Typical Cases: • Potassium permanganate • Cotton shop towels • Petroleum wax candles • Artificial corundum

9. China’s Practice in Responding to Foreign Sunset Review Proceedings (cont’d) • Chinese business community’s reaction • Chinese government’s reaction ----bilateral situation ----multilateral situation: DDA rules negotiation

10. China’s View on Improving the Sunset Review Rules • Our practice has not prevented us from reflecting up and reconsidering the sunset system. • WTO Doha Round is a good opportunity to improve the rules. • From a developing country’s perspective, China expresses its concern and basic position on sunset review.

11. China’s View on Improving the Sunset Review Rules (cont’d) • Extension of antidumping measures after sunset review has been turned from “the exception” into “the normal rule”. • The situation is particularly serious for the exporters from developing countries and must be reversed. • China wishes to work with WTO Members to improve the rules on sunset in the future.

12. Thank you. WANG Shichun Director General Bureau of Fair Trade, Ministry of Commerce 2 Dong Chang An Street, Beijing, China Tel: 86-10-6519-8755 Fax: 86-10-6519-8172 Email: wangsc@mofcom.gov.cn