On Chinese Enterprises How To Deal With The Anti-dumping

Part One: PrefaceIn recent years, the antidumping measure has become one of the important tools of trade-protection policy. Some countries abuse the use of the antidumping law, making China the major victim of such abuse.The objective reason mainly lies in the use of the antidumping policy against China with prejudice. There are two main subjective reasons: First is that there is deficiency in the foreign trade management system in China; second is lack of understanding of foreign antidumping laws and practices from Chinese companies. When faced with antidumping issue, they either do not participate or lack of correct participation, which leads them to failure.China will soon join the WTO, but antidumping remains to be the issue bothering Chinese companies. The antidumping measure will still be existing within the WTO frame for a long period of time. The status China can have when faced with antidumping investigations by other countries/regions will not be changed substantially with China's membership of the WTO.Looking at this issue from another angle, antidumping can be used as the measure of Chinese trade protection policy. The research of antidumping theory and practice will be an inevitable strategic task facing Chinese companies. The importance of such tools should be recognized as to protect the legitimate right of our domestic industries.Part Two: A Brief Introduction of Dumping and AntidumpingAccording to the "Antidumping Regulations" of the GATT agreement, the concept of dumping can be defined by three conditions: The export price is lower than the normal value of the product; Material injury has been done or can be assumed to the domestic industry of the importing country by the product dumped; such injury is directly related to the product dumped.According to traditional theories, dumping can be classified into several categories. The dumping concept in this article is "Product Dumping" and it is under the regulation of antidumping laws.Antidumping law is an administrative law governing and supervising the dumping and antidumping relationship during the transaction of a product namely import and export between exporters, importers and the domestic manufacturers of the importing country. The principals are the exporter, the importer and the manufacturer of the importing country. The objective is the dumping and antidumping relationship of the principals. Antidumping law is usually an independent part of the administrative law.The implementation of antidumping measures should be beneficial to the development of the international trade. Antidumping duty should be imposed to protect the injury done to the domestic industry. This is the positive side of antidumping. The negative side of it is that once misused, it will be over the limit of fair protection and becomes the tool of trade-protectionism.Part Three: Antidumping Law of the USAThe first antidumping law of the US is included in the "Revenue Act" of 1916. Afterward, new laws of supplements were issued on 1921, 1930, 1974 and 1979, which makes up the whole US antidumping law.The government organizations in charge of the implementation of the antidumping law are the US Department of Commerce (DOC) and the US International Trade Commission (ITC). DOC determines whether dumping exists and the dumping margin and ITC determines whether the dumping posts material injury to US domestic industry.The US antidumping procedure includes: Antidumping Investigation, Preliminary Determination, Final Determination and Administrative Review etc.The Export Price (EP) and Constructed Export Price (CEP) measure up antidumping margins for market economy countries. Since China is considered to be one of the Non-market economy countries and a putative normal export price is calculated by production factors. DOC uses the price of each production factors of the subrogate countries to calculate the putative normal price.Part Four: Lessons learned from actual US antidumping cases agai...