India's Non-Market Economic Treatment Of China In Anti-Dumping Investigations

The 15th article of Report of the Working Party on the Accession of China to WTO stipulates that China will be treated as a Non-Market Economic Country in 15 years even if China is a member of WTO, unless there are specified and reversed evidences to show the existence of market economic. With the sharp increasing in export volume, China is facing more and more trade frictions. The Non-Market Economic Treatment (NMET) is the outstanding problem when China faces anti-dumping investigations. According to the statistics of WTO, there are 761 anti-dumping investigation cases against China and 131 cases of them initiated by India from January 1st,1995 to December 31st,2009. Therefore, there is a practical significance to study the implementation of India's Non-Market Economic Treatment for India treating China as a Non-Market Economic Country so far.This dissertation analyzes implementation of India's Non-Market Economic Treatment according to the materials from Ministry of Commerce & Industry of India mainly because there are just some data in the official website of WTO instead of the specified cases and their findings. Although India's rules of Non-Market Economic refers to European Union's anti-dumping laws, there are some significant differences between them. EU prefers to applying the method 1 then method 2 to determine the normal value of concerning goods from Non-Market Economic Countries and treating the method 3 and 4 as complementary methods. However, India prefers to using the method 4 to determine the normal value of concerning goods from China. The country applies the method 1 and 3 in several anti-dumping investigations agsinst China and never uses the method 2 to determine the normal value of Chinese goods. According to India's applying different methods to determine the normal value of concerning goods from the same Chinese appealing enterprises, the thesis works out that India enhances the dumping margin of Chinese appealing enterprises 66.54 per cent higher than normal level averagely by using NMET and India's constructed prices. India also enhances the dumping margin of Chinese non-appealing enterprises 115.53 per cent higher averagely according to the best information available (BIA).Analyzing the relation of implementation of India's Non-Market Economic Treatment and types of Chinese appealing enterprises, the paper draws a conclusion that the state-owned enterprises are given the highest probability of Non-Market Economic Treatment by India while foreign-capital enterprises receives the lowest probability of Non-Market Economic Treatment in three types of corporations. There are 118 state-owned enterprises appealing in anti-dumping investigations and 115 of them are given Non-Market Economic Treatment by India. By comparing, there are 40 appealing foreign-capital enterprises and 28 of them receiving Non-Market Economic Treatment during investigations.India remains its rules vaguely on judgment of Non-Market Economic Countries and this leaves considerable free space to rule for Directorate General of Anti-dumping & Allied Duties. Finally, Non-Market Economic Treatment is an interdisciplinary research topics, the paper also quotes some clauses from India's related laws to support its views.