Europe, The United States, Alternative State System Analysis

In resent years, accompanying with trade globalization, such tariff or non-tariff barriers have been decreased accordingly, and thus antidumping measures have played more and more overspread roles for trade protectionism as well as mainly been accountable for international trade disputes. China, as a most important victim thereof, has been charged with dumping investigation over 485 cases since 1979 according to International Business Daily (April 4, 2002). Apart from such comparative advantages in labor forces and raw materials, China has been viewed as a "non-market" economy by most industrialized countries which adopt substitute country methods to decide prices of exporting products.EU and America are principal target markets for China's exportation. Currently, most prosecutions concerning antidumping against originated from said regions. They are two major economies to adopt substitute country approach to decide the "fair value" of products from China. For responding such severely situation, both China's government and enterprises need to understand and research the details of such approach of America or Europe for finding an outlet.This article sponsors a comparative study over both approaches of United States and Europe Union based on relevant case law to find out both differences and similarities on substitute country selection, operation mechanism, current developing, irrational factors or political concerns, and thus to suggest relevant responding strategies so as for assisting Chinese exporting enterprises.This article comprises five parts:I. Substitute country system and its international jurisprudenceIn this part, the author expounds the backgrounds, conception, and international jurisprudence of substitute country system and points out that such system even had been written in the legal antidumping systems of GATT and WTO while the antidumping rules of GATT or WTO had not further specified such important technological details as how to decide a non-market economy, select a substitute country, calculate fair values. In contrary, said problems were resolved within each member's domestic legislation according to respective practice.II. Differences of Substitute System of EU and US...