The Application of the WTO Agreement in China Inaugural-Dissertation zur Erlangung der Doktorwürde der Juristischen Fakultät der Eberhard Karls Universität Tübingen vorgelegt von Mengyao Xu aus Hebei (VR China) 2012 Dekanin: Prof. Dr. Barbara Remmert 1. Berichterstatter: Prof. Dr. Martin Nettesheim 2. Berichterstatter: Prof. Dr. Jochen von Bernstorff Tag der mündlichen Prüfung: 6. Februar 2012 The Application of the WTO Agreement in China Table of Contents INDEX OF ABBREVIATIONS .......................................................................................... III CHAPTER 1 INTRODUCTION ......................................................................................... 1 CHAPTER 2 THE PROCESS OF CHINA’S ACCESS ION TO THE WTO AND CHINA’S REFORM…… .................................................................................................................. 6 2.1 ACCESSION AS A CONTRACTING PARTY...........................................................................................6 2.2 BID OF RESUMPTION AS AN ORIGINAL CONTRACTING PARTY .....................................................9 2.3 FROM RESUMPTION AS AN ORIGINAL CONTRACTING PARTY TO ENTRY AS A NEW PARTY...11 2.4 WAY TO THE FINAL CONCLUSION ...................................................................................................13 CHAPTER 3 INTRODUCTION TO THE PROBLEM OF APPLICATION OF INTERNATIONAL TREATY IN DOMESTIC LAW .......................................................... 16 3.1 TERMINOLOGICAL RESEARCH..........................................................................................................16 3.2 THEORIES AND DOCTRINES ..............................................................................................................21 3.2.1 The Relationship between International Law and Domestic Law and the Introduction of Treaty into Domestic Law ..............................................................................................................22 3.2.2 The Direct Applicability of Treaties in Domestic Law.....................................................28 3.2.3 The Hierarchy of Treaties in Domestic Law ......................................................................28 3.3 PRACTICE ON THE APPLICATION OF TREATY IN DOMESTIC LAW : TWO EXAMPLES ................30 3.3.1 The Approach of the Application of the EC Law of the European Court of Justice ...30 3.3.2 The American Approach........................................................................................................35 CHAPTER 4 THE CHINES E APPROACH ON THE APPLICATION OF TREATY ............. 38 4.1 LEGISLATION ......................................................................................................................................38 4.1.1 Legislation on the Treaty Conclusion Procedure .............................................................38 4.1.2 Legislation on the Application of Treaties .........................................................................39 4.2 INTERPRETATIONS AND OFFICIAL DOCUMENTS .............................................................................60 4.3 JUDICIAL JUDGMENTS .......................................................................................................................65 4.4 ACADEMIC REVIEWS .........................................................................................................................69 4.4.1 On the Relationship between International Law and Domestic Law ............................69 4.4.2 On the Introduction and the Applicability of Treaty ........................................................72 4.4.3 On the Hierarchy of Treaty in the Chinese Legal System ...............................................79 4.4.4 Future Prospects.....................................................................................................................82 4.5 ANALYSIS............................................................................................................................................85 CHAPTER 5 THE APPLICATION OF THE WTO AGREEMENT IN CHINA ..................... 98 5.1 THE DIRECT APPLICABILITY OF THE WTO AGREEMENT IN GENERAL......................................98 5.1.1 The Requirements of the WTO Agreement .........................................................................98 5.1.2 Discussions in Western Countries .................................................................................... 104 5.2 THE DIRECT APPLICABILITY OF THE WTO AGREEMENT IN CHINA ........................................ 109 I 5.2.1 Academic reviews.................................................................................................................109 5.2.1.1 Arguments Denying Direct Applicability ....................................................................... 110 5.2.1.2 Arguments Favoring Direct Applicability....................................................................... 114 5.2.1.3 Possible solutions ............................................................................................................ 116 5.2.2 The Practice of the Application of the WTO Agreement in China...............................122 5.2.2.1 The Conclusion Procedure .............................................................................................. 122 5.2.2.2 The attitude of the Working Party Report and the Chinese Legislature ......................... 125 5.2.2.3 The attitude of the Supreme People‟s Court ................................................................... 129 5.2.2.4 Direct Effect of the WTO Agreement? ........................................................................... 134 5.2.2.5 The Impediments of Direct Application in the Court System......................................... 141 5.2.2.5.1 Dependent Judicature............................................................................................ 141 5.2.2.5.2 Insufficiency of Professionals in the Courts ......................................................... 145 5.2.2.5.3 Problem of Uniform Application.......................................................................... 145 5.2.2.5.4 Problem of the Competence of Judges in the Application of Law ....................... 147 5.2.2.6 Indirect Application......................................................................................................... 149 5.2.2.6.1 Treaty-Consistent Interpretation ........................................................................... 149 5.2.2.6.2 Supplementary Legislation ................................................................................... 150 CHAPTER 6 CONCLUSION ..........................................................................................156 REFERENCES ..............................................................................................................164 BOOKS .......................................................................................................................................................164 JOURNALS .................................................................................................................................................174 DISSERTATIONS FOR ACADEMIC DEGREES..........................................................................................182 CASES ........................................................................................................................................................183 European Court of Justice ...............................................................................................................183 WTO .....................................................................................................................................................183 Chinese courts....................................................................................................................................183 OTHER SOURCES......................................................................................................................................185 APPENDIX I TABLES ...................................................................................................188 TABLE 1: IMPORTANT CHANGES IN LEGISLATION AFTER THE WTO ACCESSION OF CHINA .......188 TABLE 2: TREATY CONCLUDING PROCEDURES UNDER THE CONSTITUTION OF CHINA*...............190 APPENDIX II................................................................................................................192 INDEX OF CHINESE LAWS, REGULATIONS, AND OTHER LEGISLATION ............................................192 INDEX OF CHINESE JUDICIAL INTERPRETATIONS, ADMINISTRATIVE INTERPRETATIONS, AND OTHER OFFICIAL INSTRUMENTS............................................................................................................196 II The Application of the WTO Agreement in China Index of Abbreviations AD Anti-Dumping (Agreement of the World Trade Organization) United Nations Convention on Contracts for the International CISG Sale of Goods DSB Dispute Settlement Body (of the World Trade Organization) Dispute Settlement Understanding (of the World Trade DSU Organization) e.g. exempli gratia etc. et cetera EC European Community ECJ European Court of Justice ECHR European Court of Human Rights EEC European Economic Community EU European Union GATT General Agreement on Tariffs and Trade GATS General Agreement on Trade in Service MFN Most Favored Nation NPC National People‟s Congress (of the People‟s Republic of China) PRC People‟s Republic of China Pre-shipment