On the Dilemma of State-owned Enterprises in China-US Trade and the Solution .............................. SUN Yan

Abstract：In trade between China and the US，one of the main differences is the legal status of state- owned enterprises which lies in many aspects such as immunity and subsidies. Moreover，there are more and more free trade agreements with a single chapter concerning about state-owned enterprises in which the US has played a leading role. The problem of state-owned enterprises has become one of the hottest issues in China- US trade friction. Chinese state- owned enterprises are in a dilemma which they can not be immune from the jurisdiction of the courts in the US because of their commercial activities，but their related commercial products have been frequently investigated by the US. Also，Chinese state- owned enterprises are confronted to a challenge that more and more free trade agreements are establishing new rules for state-owned enterprises with the efforts of the US for perusing protectionism. The author analyzes and summarizes the above contradictions in the relevant laws and trade policies of the US from a comprehensive perspective，that is，the erratic judgment standards of state-owned enterprises that can be attributed to state behavior，and the confusion of anti-subsidy rules and regulations of non-commercial assistance. Due to the huge differences between China and the US in terms of the size of the state- owned enterprises and the orientation of trade protectionism policy，the relevant rules of the US are difficult to change. It is suggested to improve the relevant domestic legal rules in the perspective of international law while promoting the reform of state- owned enterprises as a strategy as well as to distinguish the absolute immunity position from the litigation strategy of offering immunity defense when facing lawsuits from American courts as tactics. Meanwhile the Chinese government should strive to maintain the multilateral trading system，and actively participate in the construction of new international trade rules.

Key words：China-US Trade；state-owned enterprises；immunity；anti-subsidy；non-commercial assistance