U.S. producers that believe themselves injured by subsidized
Chinese imports have not been able to obtain relief through CVD
actions because China is considered a nonmarket economy country
(NME) under U.S. law and practice. In two 1984 cases, the
Department of Commerce declined to make CVD determinations for NME
countries on the grounds that it lacked explicit legal authority to
impose CVDs on NME countries and that, as a practical matter, it
could not arrive at economically meaningful conclusions regarding
subsidies in such countries-and therefore could not rationally
apply the CVD laws. Commerce based the latter finding on its
conclusion that, in such countries, government intervention in the
economy is so pervasive that meaningful comparisons between
subsidized and market-determined prices are not possible. A federal
appeals court subsequently upheld Commerce's determinations.
General
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