On 26 January 2022, a World Trade Organization (WTO) arbitrator issued a decision on the level of countermeasures China may request in its dispute with the United States regarding US countervailing duties on certain products, allowing China to suspend concessions in the trade in goods sector at a level totaling up to USD 645 million per year, as a result of the U.S. government’s failure to comply with an effective WTO ruling. This decision is China’s latest victory in the decade-long dispute, which has great significance in rectifying U.S. illegal conducts with regard to its imposition of countervailing duty measures and safeguarding the multilateral trading system. In addition, the USD 645 million level of countermeasures granted in this decision ranks as one of the highest levels of trade retaliation rulings made in the history of the WTO, which can effectively protect legitimate economic and trade interests of China and Chinese enterprises.
Initiated on 25 May 2012, this dispute has gone through the procedures of consultations, original panel proceeding and appellate review, an arbitration to determine the reasonable period of time for implementation, compliance panel proceedings and appellate review, and an arbitration to determine the level of suspension of concessions. It has lasted for nearly a decade and has gone through all of the WTO dispute settlement procedures. This is also the second time that China has been granted levels of suspension of concessions against the United States at the WTO. The KWM WTO team, led by partners Xiao Jin, Li Zhenghao and Su Chang, advised the Chinese government throughout this dispute.
