To Circumvent Anti-dumping China's Foreign Direct Investment Mode

With the integration of world's economy and trade, tariff and non-tariff barriers used as protection measures fail to function now as efficiently as they did before, New protection measures under WTO framework are thus sought by the countries who want to protected their domestic market. China, as the facts show, has become the country who has suffered most in the current anti-dumping war. Chinese enterprises have to respond to the more and more serious anti-dumping charges from other countries with active strategies. Thus FDI has been an efficient way and a necessary choice for Chinese enterprises to avoid anti-dumping. This paper demonstrates the necessity and feasibility of China's FDI as a way of avoiding anti-dumping, and based on the empirical analysis of the main causes leading to anti-dumping against China, puts forward three paths of anti-dumping avoiding, namely mode of manufacturing shift, mode of market integration and mode of technology acquisition. Combined with the research on FDI's industry choice, location choice and entry mode choice, the paper works out a strategic framework of anti-dumping avoiding in a comprehensive way: enterprises in labor-intensive industry should take the path of manufacturing shift and market integration, allocate their manufacture around the world to avoid anti-dumping; enterprises in technology-intensive industry should adopt the mode of technology acquisition to absorb the advanced technologies from developed countries, upgrade the products to avoid anti-dumping.This paper integrates international FDI theories, international trade theories with the previous studies on anti-dumping. Besides, it works out a strategic framework of anti-dumping avoiding for Chinese enterprises and provides theoretical advice for them.