A Study Of EU Non-market Economy Treatment With Regard To Antidumping Investigations Against China

The rule of non-market economy treatment applied by the European Commission is not only a major principle of EU anti-dumping laws, but also an obstacle encountered by Chinese exporters involved in EU anti-dumping procedures. With the conspicuous enhancement of export from China to the EU, this rule brings more and more negative effects to the export trade of China and has gradually become an observable but insurmountable handicap discouraging many Chinese exporters. As a legal rule, 'non-market economy treatment 'is legitimate and reasonable in some sense and complies with regulations of some international laws and practices. Nevertheless, 'EU non-market economy treatment in light of EU antidumping investigations against China' dealt with in this paper refers to a special composite system which, based on the unrestrained administrative discretion of EU authority, has evolved from some rules of internal laws. This system includes the relevant rules of some substantive laws, procedural laws and some mysterious administrative rules used by the European Commission in their activities. From this point of view, the EU non-market economy treatment takes on the character of serious discrimination and is virtually an effective protectionist EU policy. Beginning with basic theories and discourses and in light of EU anti-dumping actions against China, this paper fully explores the EU legislation with regard to non-market economy treatment and its judicial practice. This paper also presents a close analysis of the essence of EU non-market economy treatment, intending to provide some helpful enlightenment to Chinese exporters. Only by fully understanding the rule of EU non-market economy treatment impersonally and grasping its essence, can Chinese exporters bring forward the wisest course and appropriate measures which will help them to cope with the problems arising from EU non-market economy treatment actively with perfect results.This paper is organized as follows. Chapter one gives an overview of some basic issues such as the concept of non-market treatment, the evolution of EU non-market economy treatment, its origination from international laws and the legal structure. In addition, this section indicates that EU non-market economy treatment is not merely a legal rule, but also a composition of many elements such as politics, economy and legal systems. Chapter two summarizes and analyses EU anti-dumping legislation and judicial practice regarding non-market economy treatment. In accordance to the regulations of EU anti-dumping law, China has not been granted country-wide market economy status, which means that, when the EU initiates antidumping cases against China, Chinese exporters can get market economy status or individual treatment only if they can prove that they have satisfied certain criteria required by the Commission, and in case they fail to do that, the analogue country rule and the single duty system will be applied to them. When applied in anti-dumping investigation, the irrationality of these regulations is obvious. Chapter three is the most important section of this paper. After illustrating the negative effects suffered by Chinese exporters due to EU non-market economy treatment, this section presents a profound and detailed analysis of this rule, generalizing and summarizing its discriminatory characteristic and the administrative discretion of EU authority, and provides the final conclusion that, essentially, EU non-market economy treatment is an effective protectionist instrument used against China. Chapter four introduces the principle of "cost-benefit" and offers Chinese exporters some advice on how to deal with EU non-market economy treatment.Using methodologies for historical analysis, theoretical analysis and positivism analysis, this paper discuss and study EU non-market economy treatment applied to Chinese exporters in depth and provides some personal opinions. On studying relevant regulations and antidumping cases against China, this paper analyze the connection between EU non-market economy treatment and the 'lesser duty rule' and elaborate the principal effects on anti-dumping results caused by EU non-market economy treatment. It is through these effects that non-market economy treatment has evolved into an effective protectionist instrument. Meanwhile, this paper brings forward some effective tactics and measures for Chinese exporters in accordance with rule of EU non-market economy treatment and its judicial practice.