News

On May 8th, 2013, Joseph Pelzman, Professor of Economics and International Affairs at George Washington University, and Fulbright Scholar at Renmin University, delivered a speech on “Interagency Trade Enforcements Center (ITEC) and US-China litigation”. It was really a compact one—Joseph condensed it in one hour and a half (Q&A session included), with round after round of enthusiastic applause of undergraduates, graduates and LL.M. students of SHUFE Law.

Joseph talked about the logic of ITEC, referring to relevant cases against China in autos and auto parts, and then examined the Chinese auto and auto parts industry and trade. And he addressed much on what makes a countervailable subsidy in the end.

ITEC was created by an executive order of President Obama on February 28, 2012 to take a “whole-of-government” approach to monitoring and enforcing Americans’ trade rights around the world. ITEC did its job well in suing China for CVD. However, the logic behind this reorganization is questionable, and it’s more likely a political organization rather than an economical one.

The fact that there’re many joint ventures in top auto parts makers in China, and China’s unusual trade surpluses with the U.S. is most probably attributive to the global auto strategy of U.S. and those CVD cases are more of political declarations than injury claims. The PRC government, on the other hand, tends to boast its achievements, which renders itself caught up in the game.

Lots of talk was given to the traffic light system of the SCM Agreement, especially clauses of “nullification and impairment” and “serious prejudice”.

                                                         (by Moye Li)