Abstract: In recent years, foreign countries have expedited to lodge countervailing measures against the mainland of China for land policies, thus it becomes more necessary and emergent to study and solve this problem. Based on domestic research, this paper reviews the related resources on economic effects brought by preferential land policies in attracting outside investment, and explains the necessity of preferential land policies and its status quo. According to the regulations of Subsidies and Countervailing Measures, the paper tries to find out the prevailing problems in these policies such as the subsidy providers, specificity, and the relative clauses. It is suggested that:(1) the government should change its role and use the market force to attract investment;(2) the government should speed up its system reform, limit its administrative permissions to avoid black-box operations and enhance surveillance;(3) the contents of regulations should be objective and neutral, strictly following the requirement of SCMA;(4) the latest development of countervailing in international practice should be followed up and safe subsidies should be adopted to protect domestic companies.
Keywords: Attracting Outside Investment, Preferential Land Policies, Subsidy and Countervailing, SCMA
source:Finance & Trade Economics ,No.1,2013