• Commerce Department Issues Landmark Determination on Unlawful Subsidies by the Chinese Government
  • April 20, 2007 | Author: Jeffrey S. Levin
  • Law Firm: Saul Ewing LLP - Washington Office
  • In a landmark decision issued on April 2 by the U.S. Department of Commerce, the Bush Administration issued a preliminary determination that subsidies provided to certain manufacturers/exporters in China could be subject to so-called "countervailing duties" (CVD) imposed by the United States on imports from that country. The decision breaks a 23-year old precedent, followed by both Republican and Democratic administrations, that so-called "non market economies" such as China could not be subject to CVD investigations under the school of thought that the extent of such subsidies cannot be accurately identified or measured.