A Study Of Legal Issues On European & U.S. Multi-national Corporations' Anti-dumping Against China

With the globalization background and a view of global strategy, on the consideration of industries structure and core-competitiveness changing, multinational corporations invests factories in China, make the best of China's cheap labor force and preferential policies and expand China's huge market. From that, they are making and made a lot of profits. At the very same time, these multinational corporations'American or European parent companies apply anti-dumping procedures aiming at killing their Chinese competitors. Taking advantages of the practice of anti-dumping investigating government agents who protect their oversea investments in China, the parent companies get lower anti-dumping tax rate or even Zero tax rate. Wrongfully from that, these multinational corporations get their market competitiveness. From the first anti-dumping investigation to China, the Saccharin Case in 1979, European Union and United states initiated 200 anti-dumping procedures against China. Among them, nearly half of those cases were applied by corporations who had foreign invested companies in China. This kind of practice seriously and badly affected the exportation of Chinese goods and the development of related industries in China. The worse is that, considering the fact that half of China's exportation come from the foreign invested companies in China, if all of the foreign invested companies in China copied the same track of aforesaid European and American multinational corporations and began to use this wrongful practice to get monopoly position in their own industries, the market that originally belong to Chinese companies can be lost. This is not an exaggeration.European and American industries initiating normal anti-dumping procedures are allowed by WTO rule system and are easily for China's companies to accept and face to. But when these European and American multinational corporations take advantages of their countries'discrimination on the application of anti-dumping procedures to abuse the anti-dumping investigation, this can be a problem.On the premise of these facts and analysis, this paper tries to ask this question: Under the WTO rules system, Is this aforesaid discrimination within the law or not?This paper includes four parts to state its theme clear:Section IBy introducing the relations among trade liberalization, anti-dumping and multinationals, illustrates the background of anti-dumping in ongoing economic globalization.Section IIIntroduce the unjustified purposes of these multinationals to initiate. From the prospect of substantial and procedural rules to answer the question: Under the WTO rules system, Is this aforesaid discrimination within the law or not?Section IIIBy introduction of differences between European and American anti-dumping exception rules, tells how to distinguish the abusing of these exception rules in an anti-dumping procedure against Chinese goods. Section IVThrough the analysis on WTO dispute solution mechanism, draw up the conclusion that the initiation and application of WTO dispute solution mechanism is one of the most effective ways to remove the abusing of anti-dumping procedure against Chinese goods.