United States Anti-dumping In China, The Trade Effect And Its Mechanism Of Action,

The number of antidumping cases from U.S. to China has been increased rapidly and it is on the top which is surpassed the EU in the 2007-2009 period. China has replaced Japan and acted as the country whose number of antidumping cases from the U.S. is the largest. The antidumping from U.S. to China leads to trade effect and poses serious challenges to the bilateral trade. Antidumping action has already exceeded the limits of fair competition. This article comprehensively and thoroughly studies the impetus of antidumping actions from the U.S. to China, and describes a variety of trade effect. We found that there are complex linkages between the motive and trade effects of antidumping. Then the article reveals the trade effects mechanism of antidumping from the U.S. to China from the driven point of view.Firstly, through the analysis of situation of trade between U.S. and China, history and characteristics of antidumping from U.S to China, we intuitively negate trade deficit is the only cause of antidumping from U.S. to China and consider the antidumping action is not a pure economic action. Further study the impetus of antidumping action. Discuss all the factors involved antidumping from U.S. to China including economic, institutional, political, and other factors. Then through a regression analysis, we got the significant factors as the impetus. They are:the endogenous economic variables:the United States industrial growth rate and the unemployment rate; the exogenous economic variables:the real exchange rate index, the U.S. import penetration, the proportion of U.S. exports to China and Chinese exports to the U.S. share; institutional factors:changes of U.S. antidumping law in 1984; political factors:political relation between China and the U.S., the trade policies of different political parties.Secondly, the paper study the obvious trade effects of antidumping from U.S. to China, including trade investigation effects, trade inhibiting effects, trade diversion effects and trade deterrent effects. This part we use the iron industry as the main case.Further more, using the economics and international trade theory and through methods of game theory, learning by doing and dynamic analysis method, the article reveals the trade effects mechanism of antidumping from the U.S. to China from the driven point of view by corresponding to the impetus and four trade effects of antidumping from the U.S. to China. There are three mechanisms:First, the restraint mechanism. Loss of the internal and external constraints incurred the trade investigation effects and deterrent effects. Second, the determination mechanism. Changes in U.S. macroeconomic factors determine the production of inhibitory effects of trade. Third, the strengthening mechanism. China's accession to the WTO in 2001 and the changes of U.S. antidumping law strengthened the trade diversion effect. This part is the main conclusion of the study.Finally, summarize the research conclusion and made suggestions on future policies. According to the impetus and mechanisms of trade effect of antidumping from the U.S. to China, the paper suggests that China should expand the intergovernmental negotiations about China's economy status to promote the international talks; actively participate in amending of WTO anti-dumping rules; actively responding to antidumping, promote the industry coordination, improve the antidumping mechanisms; improve product innovation and competitiveness of products, promote competition and appropriate protection. To actively maintain a fair trading system and the competitive environment; to stop the antidumping action from root causes.