The New Surrogate Country System in EU Antidumping Investigation deleted the wording and relevant rules of “Non-market Economy” in previous law. The concept of“significant distortion”and its identification criteria have been incorporated into new law. Pursuant to the new system, European Commission shall continue to apply the method of surrogate country prices after it had recognized that the economic system of China had significant distortions. The primary purposes of new surrogate country rules are to respond to the legal challenge made by the expiry of the Section 15(a)(ii) of China’s WTO Protocol of Accession after 11 December 2016 and to maintain the effectiveness and convenience of antidumping against China.In regard of the legal characters, the new rule is a disguised continuance of the traditional method of surrogate country prices in old law, departing from the original purpose of antidumping, an extension of traditional antidumping law’s coverage and a further step to interfere the economic management system of exporting countries. The new surrogate country system constitutes a violation of the common antidumping rules of WTO. After 11 December 2016, it has no special authorization from Section 15(a)(ii) of China’s WTO Protocol of Accession. Consequently, and it is illegal under the WTO multilateral trade system.