This book analyses subsidies from various perspectives and creates a model that determines whether or not their use is justified. Further, it analyses the various causes of trade distortion, trade-discriminatory practices, and other issues associated with unregulated subsidies. In addition, the book considers how these issues fall within the scope of subsidies described under the SCM Agreement. The primary discussion from the perspective of WTO objective concerns the trade practice of awarding subsidies, for exports and also for protectionist purposes. Here, the terms justifiable and non-justifiable are used as hypothetical parameters to determine the extent of state support, considering the country classification based on economic and technological criteria, and their objectives for development. These parameters are distinct from Prohibited, Actionable, and Non-Actionable subsidies, as classified under the SCM Agreement. Subsidies awarded for the purposes of development and for welfare are considered as justifiable, whereas subsidies for the promotion of exports or state measures adopted for protectionist purposes are non-justifiable. Lastly, the book addresses the implications of such subsidies on the core objectives of the WTO and in connection with fair trade values.

This report responds to the mandate for the Committee ¿to monitor, investigate, and report on the national security implications of the bilateral trade and economic relationship between the U.S. and the People¿s Republic of China.¿ Includes detailed treatment of investigations of the following areas: proliferation practices; economic transfers; energy; U.S. capital markets; regional economic and security impacts; U.S.-China bilateral programs; World Trade Organization compliance; and freedom of expression. The Committee conducted its work through a comprehensive set of 9 public hearings, taking testimony from over 92 witnesses from Congress, the executive branch, industry, academia, policy groups, and other experts. Ill.