A Political And Economic Analysis On The Essence Of International Anti-dumping

With the establishment of WTO and process of economic globalization the general global tariff rates have been getting down and traditional non-tariff trade barriers becoming less. As a result anti-dumping is now used by many countries as the most common way of "back doors to Protection". Anti-dumping is directed against the unfair behavior in the very beginning, however, it has turned into a kind of effective trade Protection tool.Through both theoretical and empirical study, we aim to explore the essence of Anti-dumping nowadays and expect to get some effective countermeasure and suggestion for China.After the preface and literature survey, we review the traditional anti-dumping theory and find many vulnerabilities and irrationalities. Now the foundations of traditional dumps barely exist and the few dumps that exit are just a kind of enterprises' common ways to operate. Although anti-dumping has its legal foundation, the practical application is unreasonable. Moreover, the cost of anti-dumping is very high which means a great waste of social resources. It will also bring negative influence to social welfare. Therefore, as a trade protection tool, anti-dumping is inappropriate in the process of globalization.Through statistical analysis of contemporary anti-dumping, discrimination has been found not only between countries but industries. For example, more anti-dumping measures are used to the countries that have comparative exporting advantage and industries that can get more profits. Obviously, anti-dumping has already lost its original intention for fair trade, and become a tool for trade protection now.Since anti-dumping is a kind of tool for trade protection, we explore the impact factors of international anti-dumping from traditional trade protectionism theories. These factors impact the enterprises' behaviors and governments' policy establishments in the protection of their trades. That is just the way they impact anti-dumping. An anti-dumping case can be affected by many factors, such as the domestic macroscopic situation, lobbying between groups, international negotiations and so on. Firms' profit will decrease at slump, so at this moment more anti-dumping application may be put forward. Firms are now just bearing recession, so the establishment of anti-dumping will be more easily to make. However, as has been pointed out by these studies, the factors influencing anti-dumping behavior of nations may go well beyond the economic performance of the domestic firms. The demand for anti-dumping measures may come from the domestic industry, not because they are materially injured by dumping but due to the 'rent-seeking behavior'on their part. Moreover anti-dumping evolve international revenge and deterrence. Thus the available studies have tried to bring out the protectionist nature of the anti-dumping measures.The international anti-dumping against China also shows its substance of their trade protection. Statistical analysis demonstrates that the international anti-dumping against China is not only growing, but also clearly discriminatory. International anti-dumping against China is putting China's enterprises into operation difficulty, at the same time, bringing China enormous benefit loss, which influences China's economic development. Then the macro-and industry-level econometric analysis shows that political and economic factors are more significantly important in the anti-dumping against China. This evidence illustrates the substance of international anti-dumping against China more obviously--their governments who are forced by their domestic political pressure implement means of trade protection. Issuing the anti-dumping against China by enterprises is not because of the dumping of Chinese products, but because of the competitive pressure of Chinese products; and consequently, the implementation of a competition strategy. Econometrics analysis results also imply the arbitrary anti-dumping ruling against China, as well as the irrationality of anti-dumping measures.With anti-dumping has become a means of trade protection, our products' anti-dumping problem is not actually dumping. Therefore, some policy recommendations proposed from previous literature, such as the export price norms, industrial upgrading, should not have practical results. Theoretical and empirical analysis confirmed that under certain conditions, our country's anti-dumping deterrence capability can deter other countries not to make anti-dumping against us rashly. Except for the moderate and targeted increase in foreign anti-dumping issuing and reduce in our country's exports concentration to certain countries, some other measures can be made in order to enhance our deterrent capability of anti-dumping:strengthening of monitoring and early warning of anti-dumping against China, improving anti-dumping legal system, strengthening the lobbying of interest groups, Changing China's" non-market economy status", and enhancing China's enterprises enthusiasm of the respondent.