[ABSTRACT]  In recent years China has faced numerous countervailing duty investigations among others by the United States and Canada . Reactions to countervailing measures are usually much more policy-oriented than market-oriented. Whereas the dominant strategies adopted by the individual exporting enterprises are usually not the payoff dominant ones, China is tending towards establishing a government-sponsored countervailing response mechanism (Gscrm). With the Gscrm, the bounded rationality of the export enterprises in the countervailing counter-action can be eliminated and therefore payoff dominant equilibrium in a countervailing-responding cooperation game can be achieved 

[Co-authors] Luan Xinjie is Professor and Director of the International Trade Institute of China Jiliang University in Hongzhou , China and Guest Senior Researcher at China-s World Trade Organization Institute of the University of International Business and Economics in Beijing . Dr Julien Chaisse is Senior Research Fellow at the World Trade Institute in Berne , Switzerland and Visiting Professor at Wuhan University Faculty of Law in China .