Solutions of the Growing Use of Anti-dumping Measures by Countries in Recent Decades

In recent decades, international trade has evolved into a complex system of trade barriers to ensure the protection of domestic industry and its workers interests. However as tariffs have fallen and international trade tends to be free trade, countries have found another way of protecting domestic industries from foreign competition—non-tariff protection. Among them anti-dumping is the most controversial subject that is involved in the foreign trade. This theme will analyze the reason and effect of growing use anti-dumping measures by countries in recent decades and try to give some possible solutions.

Why Has China Become a Target of Anti-dumping Activities?

Although the benefits of China’s trade expansion have been distributed much more broadly than those of some early industrialized nations,China has become the primary target of anti-dumping activities.Being a new and relatively efficient new rival in the global market may be an important reason for this.On the other hand,China’s development stage and her trade structure also place her in a disadvantageous position when it comes to anti-dumping activities.

Anti-dumping in Textiles and Clothing

In the run up to the expiry of quota restrictions that had long regulated much of global trade in textiles and clothing, many a pundit predicted widespread recourse to anti-dumping actions.

NCTO Endorses Mexican Anti-dumping Case With China

The president of the National Council of Textile Organizations(NCTO )has written a letter to the Mexican Economic Secretary Hugo Diaz strongly endorsing his country’s decision to seek a World Trade Organization(WTO)

Anti-dumping Investigation Puts Pressure on China

Under the pressure of the anti- dumping investigations on silk fabrics launched by the Indian government, the China Chamber of Commerce for Import & Export of Textiles (CCCT) announced that it has decided not to hold the Silk Trade Fair (Autumn) this year, in order to avoid the negative effects the case might bring.

Ministry of Commerce's Final Arbitration on Anti-dumping Investigation on Nonyl Pheno

The Ministry of Commerce of People’s Republic of China issued the Announcement No.11,2007 of

Anti-Dumping on and from China

The past years saw an increased cases of anti-dumping on China mostly from the developed countries,some from developing countries.But Pakistan,a friendly neighbor to China,recently adds up to that list of ranks for an anti-dumping investigation on China.It is the national interests that count most,after all. It gives out a signal that anti-dumping would be a frequent tool to defend or to attack. Evidences show China is a target for this trade remedy,but is also targeting others.

China,India in sharp contrast in anti-dumping action

Based on 1995-2008 data, the author researched China and India’s anti-dumping situations, examining the level ofinternational status and countries and industries involved, and analyzed the symmetry between China and India’sinitiation and the encounter of anti-dumping cases using the index of accusation symmetry (IA) and the index ofsanction symmetry (IS); based on this, the author surveyed India’s successful anti-dumping experiences and analyzedwhy China is frequently accused of anti-dumping, yet loses most anti-dumping petitions initiated against othercountries.The author then put forward policy suggestions regarding how to reduce the intensity of anti-dumpingaccusations filed against China and intensify the strength of its own anti-dumping actions filed against other dumpingnations.

Anti-dumping Policies and International Portfolio Allocation:The View from the Global Funds

Anti-dumping policies,as one of the most important nontariff measures to protect a country's economic interests,can have an impact not only on a country's trade and social welfare,but also on capital fows.Anti-dumping measures can result in increased trade costs and alterations to exchange rate risk.This study investigates the impact of anti-dumping sanctions on the international portfolio allocations of global funds.Anti-dumping policies can decrease the proportion of a fund's investment portfolio allocated to recently-sanctioned countries.Closer trade ties between the sanctioned country and the country where a fund is domiciled exacerbate the divestiture,but stronger foreign direct investment links weaken the negative association.Some country and fund heterogeneities are also discussed.We find that more developed countries are less affected by the impact of anti-dumping measures on equity fund allocations;liberalization of the economy and stable government could also mitigate the negative impact of anti-dumping sanctions.High-risk funds,such as growth funds or funds that invest in leveraged buyouts,showed the greatest response to changes in anti-dumping regulations.

Comparative analysis of trade effects of anti-dumping measures targeting China vs.those initiated by China

Using the numbers of anti-dumping cases both in China and around the world, the value of imports and exports from 1995 to 2012, and the anti-dumping index (ADI) proposed by Finger and Murray in 1999, this paper analyzes the characteristics of anti-dumping measures that target China and those imposed by China, and constructs a multiple linear regression model. We try to show the effect of anti-dumping measures in either direction on the total value of China’s trade. This paper finds that both have great impact on export trade value. The intensity of the level of anti-dumping measures to which China is subject is positively correlated with total export value since this intensity, to a certain degree, can promote China’s industrial upgrading and the increase of the export of high value-added products. This paper further analyzes different effects of anti-dumping measures based on the method of technological content classification of Lall (2000). Finally, we put forward policy suggestions on how to enhance China’s export competitiveness by overcoming the effects of antidumping measures to which we are subject and by making proper use of antidumping measures on others.

Trade Barriers and Participation in the Global Value Chain:An Empirical Study Based on Anti-dumping toward China

This paper investigates the effects of trade barriers on China s participation in the global value chain(GVC)using a thorough decomposition approach for trade volume,total exports,final exports and intermediate exports.Our econometric results indicate that anti-dumping(AD)measures initiated by trade partners have restrained the process of China s participation in the GVC.From 2000 to 2014,AD measures reduced the foreign value-added rate of total,final and intermediate exports by 4.5 to 28.7 percent,3.4 to 17 percent and 1.2 to 8.5 percent,respectively.In addition,suffering the effects of AD measures,China s GVC position index declined by 8.2 percent to 28.6 percent during this period.Moreover,AD measures have increased industries'upstream index by 3.2 to 13.7 percent over the same period.These results imply that both the petition and approval of AD cases has had a negative influence on the extent and position of China s GVC participation.

Developments in US Trade Policy toward China and Outlook for China-US Trade Relations

During the early days of Trump’s administration,the Mar-a-lago summit,held between US and Chinese leaders,once injected high-level momentum into bilateral trade talks and laid a solid foundation for the release of the initial actions of the China-US Economic Cooperation 100-Day Plan.The bilateral trade relations began amicably early in Trump’s presidency.However,the US soon began to play hardball against China,initiating anti-dumping and countervailing investigations and imposing punitive duties on several Chinese imports,and launched the Section 301 investigation on what it alleged was China’s theft of US intellectual property.The US also denied China’s market economy status,promoted reforms that gave a stronger hand to the Committee on Foreign Investment in the United States(CFIUS),vetoed several mergers and acquisitions cases involving Chinese investment in the US and interfered in the relevant operations of Chinese enterprises.Recently,it has even spearheaded Chinese products and investment in strategic hightech fields.This policy transition not only embodies Trump’s“America First”principle but also shows that non-economic factors have played an increasingly important role in US policy-making.