| Since Sino-US diplomatic relations were established in 1979, there has been much more bilateral trade. As bilateral trade developed, China and the U.S. became each other's important trade partner, and the trade conflicts also increased at a fast speed. According to the U.S. Department of Commerce, China is US's second largest trade partner, third largest export market and the largest import country, and the U.S. is China's second largest trading partner and the second largest export market. The first antidumping investigation initiated by U.S. was against Chinese Menthol on July 2, 1980. By 2000, the number of antidumping investigations by U.S. against China was up to 79. Since China entered the WTO in 2001, the trade deficit between China and the U.S. has expanded dramatically. Followed by the expanded trade deficit are the increasing trade conflicts and remedy measures. Antidumping accounts for 70% of all the trade remedy measures used by U.S. against China, and 1/3 antidumping investigations against China were initiated by US. What's more, the breakup of the financial crisis in 2007 added a catalyst to the bilateral trade conflicts, and U.S. antidumping investigation turns out to be more frequently applied. Antidumping becomes a hot spot in Sino-US relationship.At the beginning, the antidumping cases covered the fields of major exports, such as medicine, mechanics and instrument, textile, five minerals, light industry and so on. While from 1995 to 2010, the filed petitions have expanded to cover the fields of firearms and ammunition, arts and antiques, precious metal and gemstone, animal or vegetable organic tissue and so on. What's more, according to WTO statistics, from January 1st,2007 to March 2010,170 antidumping investigations were initiated against China, among which 28 cases were already implemented antidumping measures. The U.S. turns to be the country that has initiated the most anti-dumping investigations against China and implemented the most anti-dumping measures for that period. Could antidumping be good to the development of Sino-U.S. bilateral trade and how should such a phenomenon be considered? That is just what this paper is written for. This paper depicts the antidumping situation, analyzes the reasons for it, and proposes some counter measures for the Chinese government, industries and enterprises, in order to promote Sino-US bilateral trade.There are five chapters in this paper.The introduction chapter reviews the development of Sino-US bilateral trade, which shows that antidumping has become a hot spot in Sino-US relationship. It's of great significance to avoid antidumping investigation and promote Sino-US bilateral trade. This chapter also includes the foreign and domestic literature reviews that are related to the reasons and effects of antidumping, which are the theoretical basis for this paper.The second chapter is the theoretical basis for antidumping, including the definition of dumping and antidumping and non-market economy status problem. For dumping and antidumping, China has its own definition, while WTO/GATT and the US Tariff Act of 1930 also have defined them in their own standards. This chapter compares these definitions.China defined dumping as the following:dumping refers to selling same product at different prices, at home and abroad. According to GATT 1994, Article VI Paragraph 1 on Anti-dumping and Countervailing Duties:The contracting parties recognize that dumping, by which products of one country are introduced into the commerce of another country at less than the normal value of the products, is to be condemned if it causes or threatens material injury to an established industry in the territory of a contracting party or materially retards the establishment of a domestic industry. For the purposes of this Article, a product is to be considered as being introduced into the commerce of an importing country at less than its normal value, if the price of the product exported from one country to another (a) is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country, or, (b) in the absence of such domestic price, is less than either (ⅰ) the highest comparable price for the like product for export to any third country in the ordinary course of trade, or (ⅱ) the cost of production of the product in the country of origin plus a reasonable addition for selling cost and profit. According to PartⅠ:Article 2 of Agreement on Anti-dumping on determination of dumping:a product is to be considered as being dumped, i.e. introduced into the commerce of another country at less than its normal value, if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country. According to the US Antidumping Law, U.S. industries may petition the government for relief from imports that are sold in the United States at less than fair value ("dumped"). With the export price or export price and normal value constitutes a fair comparison, such as the export price or export price is greater than the normal value of form does not constitute dumping; otherwise constitutes dumping.For the non-market economy status, it is also based on the WTO regulations and U.S. laws. The Anti-dumping Clause of Sino-US Bilateral Agreement on China's Accession to WTO provides that the two countries agreed to maintain its current anti-dumping provisions and China will be treated as a non-market economy country. The terms will be valid for 15 years. China can request the United States authorities to investigate on a particular sector or the entire economy of China based on U.S. laws to make sure whether they are market oriented economy, thereby they could be excluded from "non-market economic approach". The U.S. determines the market value of import products from non-market economy countries mainly through the cost of production materials, and this is the so-called "non-market economic approach."According to Article 15(d) of Protocol on the Accession of the People's Republic of China:Once China has established, under the national law of the importing WTO Member, that it is a market economy, the provisions of subparagraph (a) shall be terminated provided that the importing Member's national law contains market economy criteria as of the date of accession. In any event, the provisions of subparagraph (a) (ii) shall expire 15 years after the date of accession. In addition, should China establish, pursuant to the national law of the importing WTO Member, that market economy conditions prevail in a particular industry or sector, the non market economy provisions of subparagraph (a) shall no longer apply to that industry or sector. Besides, the paper also introduces the process of antidumping investigations and countervailing duty and the structure of the U.S. antidumping law.。The third chapter analyzes the U.S. antidumping against China and its causes, which include the U.S. antidumping situation against China, the characteristics of the U.S. antidumping and the causes for U.S. antidumping against China.Firstly, the chapter depicts the U.S. antidumping situation against China. According to Chinese Ministry of Commerce, Commerce Department of U.S., WTO and other authorities, China has become the country that U.S. initiated most antidumping investigations:Secondly, the characteristics of the U.S. antidumping against China were explained from three aspects:the increasing numbers of antidumping investigations; more concerned goods; Chinese enterprises in disadvantage.Finally, this chapter analyzes the reasons for antidumping from micro factors and macro factors. The macro factors mainly include:the breakup of financial crisis; political factors; achieving other economic goals; the huge trade deficit; the defects in WTO system; China's non-market economy status; adjustment of industrial structure in the US. The micro factors mainly include:exporting disorder of Chinese enterprises; Chinese inactiveness in responding to the U.S. anti-dumping; preventing Chinese enterprises from entering international market by oligopolistic firms.The forth chapter proposes some counter measures against U.S. antidumping against China. The proposals are connected with different phases of the antidumping trade policy process:the antidumping warning, investigation countering, and some from the macro aspect. These proposals were raised respectively for the government, industry associations and the enterprises. Firstly, government and trade associations should fulfill their responsibility. China's market economy status has not been recognized by the major trading partners, and there are frequent anti-dumping investigations against China. Therefore, it is essential to avoid anti-dumping against China through regulating export competition. They mainly work through the following ways:adhering to common external policy and resolutely resisting the low price export activity; improving rules of origin; regulating the enterprises'behavior; achieving industrial upgrading and brand building; further improving the antidumping rules; improving the early warning mechanism of anti-dumping. Secondly, responding to U.S. anti-dumping investigations actively. With the severe situation of U.S. anti-dumping, Chinese government, industry associations, and businesses must work together, on basis of their different roles, to coordinate, collaborate, and respond with each other. It is only through the above ways that better results can be achieved.The fifth chapter is conclusion. U.S. anti-dumping against China has become an important mode of trade friction; therefore, it is important to positively respond to anti-dumping investigations. US "sub-prime crisis" resulted in obvious international economic slowdown or even stagnation in United States, Europe and other many countries. On one hand, it should be considered from the macro aspect. Since Obama was on board, domestic economy was bothered by the financial crisis, and there is a sharp increase in unemployment rate. Together with pressure from U.S. labor unions and other political factors, U.S. anti-dumping against China was exacerbated. The United States also hopes to achieve RMB appreciation or a greater opening up of financial markets and other economic purposes through antidumping. In addition, because of the imperfections in WTO system, the abuse of anti-dumping measures is very obvious, such as the high litigation costs, the closure in expert panel hearing, the excessive handling in the agreement and so on. What's more, China's "non-market economy status" leads to the unfair treatment in U.S. anti-dumping against Chinese enterprises. On the other hand, the micro aspects should also be taken into consideration. The low-price exporting disorder of Chinese enterprises resulted in US anti-dumping investigations. The inactive responding to U.S. antidumping encouraged the U.S. anti-dumping arrogance. Anti-dumping has become strategic behavior that the world oligopoly corporations prevent Chinese enterprises from entering the international market.Based on the analysis of the above reasons, the counter measures are proposed according to the procedure of export. The government and industry associations should supervise and control the export. When countering anti-dumping investigation, enterprises should respond to antidumping with the help of industrial associations and the government. In addition, several measures are put forward from the macro aspect. The enterprises could seek help from relevant interest groups, and actively strive for a "market economy status". Besides, they should reduce their export dependence on U.S. by expanding domestic demand and achieving market diversification strategy.Fundamentally, anti-dumping is a traditional trade remedy measure recognized by the WTO, and the implementation of antidumping is primarily intended to reduce or eliminate the negative impact of foreign imports dumping on the domestic industry. However, the abuse of anti-dumping would spread its'influence on other trade areas or areas beyond trade, and even affect the normal Sino-US trade and even bilateral political relations, which are not worth the candle for both sides. The U.S. needs the Chinese market; China is also dependent on the U.S. market. Therefore, both parties should be rational in dealing with Sino-US trade problems. |
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