China and biofuels: legal and policy issues in the framework of the WTO system

The aim of this article is to provide an overview of policy and legislative measures adopted by China in the field of biofuel production and to assess them in the light of WTO law and recent jurisprudence relating to renewable energy. The article first provides a short overview of biofuels development in China, starting from the initial enthusiasm for fossil fuel substitution up to current concerns about the impact of biofuel production on food security. It then focusses on the legal discipline applying to biofuel production, taking into account, in particular, the existence of fiscal measures, subsidies, technical requirements, investment regulations and tariff measures. In the second part, these measures are analyzed in the light of WTO legal categories, in order to understand China’s position, both as a complainant and as a defendant, in actual and potential disputes regarding renewable energy. In order to provide a more complete picture of the legal issues concerning biofuels, similar measures adopted by other countries (especially the EU) will also be examined.