Small And Medium Export Enterprises In China And Importing Countries Companies Differentiate Competition With China Anti-dumping

China's foreign trade has kept increasing in high speed for 4 years since 2002. At the same time, trade friction comes forth frequently, and anti-dumping is so serious that China has been the most serious country in the world. From 1995 to 20005, world initiated 2840 anti-dumping investigations aggregately, and China encountered 469 which came up 17% of world's anti-dumping investigations. In this bad situation, thousands of exporters became victims, and lost more than ten billion dollar. Moreover millions of enterprises were affected and could not work in gear, and to a certain extent, the external environment that keeps our national economic sustainable development was disturbed.This paper used Steinberg Model and introduced the impact of differentiation to demand curve into the model to analyze vertical and horizontal differentiation competition between the med-small export enterprises and import enterprises, analyzed the impact of differentiation competition to foreign anti-dumping against China and the decision-making course of the mid-small export enterprises in China. Based on the model, this paper consider that because mid-small enterprises prefer low-quality production mode in which market barriers is so low that too many enterprises came into this market, and then too many products exported to foreign countries, so that enterprises in the import country initiated anti-dumping accusation because of reduce of their output and profit, especially in the situation of China's non-market economic status, but not our country's enterprises were dumping. Even though the export enterprises improved the quality of products, they would not only reduce their benefit, but also increase the probability of meeting with anti-dumping investigations. When the enterprises carrying out vertical competition were too many, the capable enterprises can carry out horizontal competition. Persistent horizontal competition can reduce anti-dumping accusation, but it is true that enterprises need bear more risk and invest continually.