China's Chemical Industry Of Anti-dumping Issues And Countermeasures

Since China became a member of WTO, the chemical industry has been developing rapidly, not only the employee number, enterprises scale, the product variety, and also the industry scale and speed of technology development. When Chinese products begin to appear in the foreign market, many foreign products enter Chinese market as well at the meantime. Therefore, a series of trading problems arises. The anti-dumping cases in chemical industry are comparatively centralized on certain products, which is as same as the feature of anti-dumping world widely. This is mainly because of the chemical industrial chain is very long and complicated, the trading of the intermediate products are quite much.This article consults the comparative advantage theories and welfare economic theories, combined with theory analysis and cases study, together considering the chemical industry features, explains the short-term and long-term affects of anti-dumping activities on enterprises and economy.According to the analysis on external competitions in chemical industry, external competitions encourage enterprises to do the business following the market changes. Enterprises then pay more attention to the product diversification and innovations, working capital management and large scale production. On the other hand, the excess foreign products and the possible low price dumping activity might bring negative affects to those enterprises and industries in a short time, which are not good at competition. The analysis of dumping and antidumping indicates that anti-dumping could be a good thing and a bad thing. From its static characteristic, anti-dumping activities protect the domestic manufacturers who import goods in low prices, but the consumers lose the benefits of having commodity with excellent quality and reasonable price. From its dynamic characteristic, the negative affects of anti-dumping will also result in missing the opportunity on the development of upper and lower industries because of the delay.After defined the problems when facing anti-dumping, on the basis of the economic theories, this article states the necessity of conducting anti-dumping in chemical industry, clarifies the essential feature of anti-dumping, and gives suggestion as "overall evaluation, reasonable protection and actively dealing". Overall evaluation means setting up an overall strategy of trading and development according to the characteristics and current status of chemical industry. Reasonable protection refers to on the basis of overall evaluation; setting trading guidelines for certain industries; protecting young industries and find the balance between short-term and long-term objectives. Actively dealing means under the guidance of industrial association further enhance the management activity, collect all useful information related to anti-dumping, and take part in the anti-dumping lawsuit organized by the industry association. In the way, we can include the anti-dumping activity of chemical industry into the overall management system of the nation, the industry and also the enterprises.