The size and significance of Chinese state-owned enterprises (SOEs) present major challenges for the international trading system. One issue is whether an SOE is a “public body” subject to the World Trade Organization’s (WTO) anti-subsidy regime. This Note uses forty-five U.S. countervailing duty (CVD) orders against China to illustrate the unique role of SOEs in the Chinese economy. Functioning as policy instruments, Chinese SOEs and state-owned banks are directed by the Chinese government to provide raw materials and loans in order to foster the development of key industries. Under the govern-mental authority standard and the facts available mechanism, SOEs can be determined to be public bodies even if the government refuses to provide any necessary information. This Note thus argues that the CVD law is a feasible tool to counteract the subsidies that China provides indirectly through its state-owned sector.

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