Controversy of International Carbon-motivated Border Tax Adjustment and Its Impact on China＇s Manufacturing Industries

Carbon-motivatedbordertaxadjustment(BTA)aimstocompensateforthelossofcompetitivenessofcarbonintensiveproductsduetocarbondioxideabatementactions.Basedontheanalysisoftheinternationalbackgroundofcarbon-motivatedBTAs,thispaperdiscussesthefundamentalmotivationleadingtoUSpolicytransformation,thepotentialimpactsofthepolicyonChina'smanufacturingindustries,andthecompatibilityofthepolicytoWTOrules.Carbon-motivatedBTAsviolatethefundamentalprincipleoftheUNFCCC,andpotentiallyconflictwiththecoreWTOprincipleofnon-discriminationreflectedintheGATTArticlesIandIII.However,ArticleXXoftheGATTmaybeapplicable.Thus,theauthorsuggestsseveralmeasurestoalleviatetheimpactsofcarbon-motivatedBTAs,andputsforwardcountermeasuresbasedoncarbonconsumptionpercapita.