Significance and Implications of China’s Victory in the WTO Case of Countervailing Measures Against the United States

Zhang Yuejiao

Abstract:On 26 January 2022, the WTO affirmed China prevailed in US-Countervailing Measures (DS437), and determined that China could retaliate against the United States by 645 million US dollars per year in the field of trade in goods. In this case, China sued the United States for the countervailing measures against China’s oil well pipes and other products exported to the United States in violation of the WTO covered agreements. The WTO ruled that the discriminatory trade remedy measures taken by the United States are inconsistent with WTO rules. It is of great significance for China to win the cases about anti-dumping and countervailing within WTO: effectively limiting the policy space for abuse of trade remedies; defending the WTO dispute settlement mechanism; manifesting China’s active participation in building the international rule of law; firmly safeguarding multilateral trading rules and suppressing trade protectionism; showing the growth of foreign-related legal talents in practice. In the future, China should continue to adhere to promoting the domestic rule of law and foreign-related rule of law coordinately, and actively participate in the construction of the international rule of law. At the level of domestic rule of law, in accordance with WTO rules, China should use subsidies reasonably to promote the development of foreign trade; do a good job in trade statistics and subsidy notification to enhance transparency; strengthen the research and application of WTO trade remedy rules; actively promote the reform of state-owned enterprises. At the level of international rule of law, China should actively participate in WTO dispute settlement, and use the law to protect the legitimate rights and interests of Chinese enterprises; strive to promote the WTO Appellate Body to resume normal operation as soon as possible, and restore the second-instance final review system; actively participate in WTO reform and trade remedy rules revision.

Keywords:WTO, Countervailing, Trade Remedy, Dispute Settlement, Trade Retaliation, Domestic Rule of Law, International Rule of Law, WTO Dispute Settlement Body

Chinese Legislation Regarding Salvage at Sea from an International Perspective

Fu Tingzhong

Abstract:In international perspective, the maritime legislation of salvage has gone through a long history. The Convention for the Unification of Certain Rules of Law Relating to Assistance and Salvage at Sea, 1910 laid important foundation for the unification of legal system of salvage, while the adoption of the International Convention on Salvage, 1989 indicated that the international legislation on salvage had been lifted to a higher level. China, as a state party of the convention, constructed domestic law based on the International Convention on Salvage, 1989. Nevertheless, limited by the conditions at the time of legislation, China’s maritime salvage system contains many characteristics of the convention 1910 in institutional design. So that people’s understanding of this system is still largely within the context of the convention 1910. In order to perform the obligations of a state party and protect industry of maritime transport and international trade, the current legal system should be improved under the principle for encouraging salvage.

Keywords:Salvage at Sea, Contract of Salvage, Salvage Convention，No Cure-No Pay, Employment Salvage

The Institutional Innovation for Promoting the Domestic Rule of Law and Foreign-Related Rule of Law Coordinately: Experience and Implications from the Construction of China’s Free Trade Zones

Peng Yue

Abstract:In the context of Reform and Opening-Up and Rule of Law, the construction of Free Trade Zones, e.g. Special Economic Zones, Special Economic Development Zones, Special Customs Surveillance Zone, Free Trade Pilot Zones and Free Trade Port, concerns major issues of foreign-related rule of law, such as the vertical legislative power allocation between central and local legislators，horizontal cooperation between foreign-related law and domestic law and foreign-related law’s integration with international trade and investment rules. Since 1978, in order to deal with the above issues of foreign-related rule of law, based on the legislative rationality at the legal form, practical and objective levels, the innovation of relevant legal systems has reflected the trend of embedding Reform and Opening-Up into the legal framework, and the coordinated development of foreign-related and domestic legal systems. This kind of institutional evolution has important theoretical significance and practical guiding value for understanding how to promote the domestic rule of law and foreign-related rule of law coordinately.

Keywords:Domestic Rule of Law, Foreign-Related Rule of Law, Comprehensive Promotion, Free Trade Zone, Institutional Innovation

An Analysis on the Changes of the U.S. FONOPs in the South China Sea and the Related International Legal Issues

An Shouzhi and Shen Zhongxiu

Abstract:The U.S. takes the freedom of the seas as a vital national interest and conducts FONOPs against China in the South China Sea since 2011. Taking the illegal award of the South China Sea Arbitration in 2016, the U.S. FONOPs in the South China Sea indicate some new characteristics and international law issues. It gradually increases the frequency of FONOPs in the South China Sea, and repeatedly entered within 12 nautical miles of some Chinese islands and reefs. It endeavors to take the illegal award as the so-called jurisprudence basis, adjusts its concept and language of international law on the terms of innocent passage, straight baseline, title to islands, and refines its legal packaging and legal intention thereof. In the name of challenging excessive maritime claims of coastal states, the U.S. conducts frequent and planned FONOPs in adjacent waters of Meiji Jiao, Zhubi Jiao, Ren’ai Jiao, Huayang Jiao, Yongshu Jiao, Nanxun Jiao, Chigua Jiao of Nansha Qundao (Spratly Islands), in an attempt to deny China’s territorial sovereignty and maritime rights and interests in Nansha Qundao. The U.S. also conduct FONOPs in adjacent waters of Zhongsha Qundao (Macclesfield Islands, mainly Huangyan Dao) and Xisha Qundao (Paracel Islands), including within 12 nautical miles of the relevant islands and reefs, or just vaguely declaring the waters near them, in an attempt to extend the illegal award to Xisha Qundao and Zhongsha Qundao and to enlarge its unfavor effect to China and intend to deny China’s rights and claims of the integral oceanic archipelago in the South China Sea and to turn the South China Sea into “high seas”. The U. S. FONOPs in the South China Sea are also characterized by a step by step approach, unified rhetoric and concerted efforts among its various authorities and departments.

Keywords：The South China Sea, Freedom of Navigation Operations, Innocent Passage, Straight Baseline, Integral Archipelago

The Transformation of EU Sanctions Mechanism: The Legal Framework, Operation Mechanism and Defects of EU Global Human Rights Sanctions Mechanism

Wang Yuanyuan

Abstract:Recently, the number, scope and grounds of unilateral sanctions have continued to expand, which posed new challenges to international law. In the field of EU unilateral sanctions, the establishment of the EU global human rights sanctions regime reflects the transformation from country-based sanctions towards thematic sanctions as well as from comprehensive sanctions towards targeted sanctions. From a global perspective, this regime demonstrates the joint action in the form of autonomous sanctions taken by the EU and its allies on specific issues in the name of human rights and democracy. There has been long-standing debate on unilateral sanctions in international law. The EU has always argued that unilateral sanctions comply with international law on the basis that unilateral sanctions constitute countermeasures. However, as a thematic sanction, the EU global human rights sanction regime is different from country-based sanctions, and the existing theory of countermeasures cannot provide the legal basis for it, neither can universal jurisdiction do so. The EU global human rights sanctions regime faces crises of legality, legal certainty and human rights protection, which may constitute international wrongful acts. On the one hand, states affected by sanctions can take countermeasures to safeguard their national interests. On the other hand, individuals or entities affected by sanctions can defend their rights through the EU judicial review mechanism.

Keywords：EU Global Human Rights Sanctions Regime, Human Rights Sanctions, Unilateral Sanctions, Autonomous Sanction, Thematic Sanction, Judicial Review, Countermeasures

Global Cooperation of Carbon Trading Under the Paris Agreement

Wang Yunpeng

Abstract:The Article 6.2 and Article 6.4 of the Paris Agreement inherit and develop the international carbon trading system from the Kyoto Protocol, providing a new normative framework for the global carbon trading. Grounded on these rules, the international carbon trading will perform in two modes. One is the transferring of International Transferred Mitigation Outcomes (ITMOs) among States; the other is the transaction of Carbon Emission Allowance and Emission Reductions with non-State actors as primary participators. However, the global cooperation of the international carbon trading may result in an uncertain prospect due to the material technical barriers, ethical dilemma and political obstacles from the experience of linkage of the carbon markets. Generating a uniformed global carbon price still needs to strengthen the top-level design of the international climate institution. The suggested measures include creating a special international organization, issuing a global carbon financial credits and formulating a uniformed global carbon trading platform, through which it may achieve the global transaction and exchange of carbon allowances and carbon credits issued by difference States.

Keywords：Paris Agreement, National Determined Contributions, International Emission Trading, Linking Carbon Market, Carbon Market Club, Global Carbon Budget

The Impacts of Corruption Allegations on International Investment Arbitration——Based on the Analysis of the Cases Involving Countries Along“One Belt and One Road”

Song Junrong

Abstract:Claims regarding corruption in investment not only affect the establishment of the jurisdiction of international investment arbitration tribunals, but also have explicit or implicit influence on the adjudication of the substantive issues. In international investment arbitration cases involving corruption along the “One Belt and One Road”, corruption has caused more adverse effects on investors. There are four deficiencies in the current arbitration practice: more importance attached to the fact-finding than to the application of law; the variety of the standards of proof on corruption identification; inconsistency on whether to examine the effect of corruption on the legality of investment; more importance attached to the identification of the investor’s liability than to the host state’s liability. Chinese investors who want to invest along “One Belt and One Road” should keep self-disciplined first. Confronted with bribe solicitation or extortion, investors can initiate investment arbitration against the host state. As regards the possible corruption allegations put forward by the host state, investors can argue from six aspects. In the international investment legal order jointly developed by China and the countries along “One Belt and One Road”, China should pay more attention to correcting the imbalance of interests in dealing with corruption. Combating corruption should be directed not only at the investors, but also the host states.

Keywords：Corruption Allegations, International Investment Arbitration, One Belt and One Road, Jurisdiction, Investor, Host State