How Is The WTO Anti-Dumping Legislation Affected By Collective Bias And What Is The Solution For China

Discussion in respect of anti-dumping has to be started from the dumping action.Dumping actions was first used in18thcentury, by several trade associations as amethod to compensate companies of which in order to support the exportation. On theother side, trade associations of the import countries would take actions accordinglyagainst the export countries. Such actions are the original anti-dumping actions.Apparently, the purpose of taking anti-dumping actions by import countries is not toprotect the market, or protect the consumers, but merely because prices of importproducts are much lower than those similar domestic products and the adverse effectscaused by will strongly influence the import countries.Thereafter, anti-dumping actions are world-widely adopted by many countries.Reasons of these adoptions are various. Some said it’s for the protection of thedomestic market; some said it’s for the maintenance the fairness of the internationaltrade; some said it’s just trade protectionism. Within the scope of economics, it hasbeen strongly debated that there is a solid economic theory supporting theanti-dumping actions. In spite of these debates and different opinions, theanti-dumping legislation never stops developing. After the establishment of WTO, anindependent legal department was formed regarding anti-dumping actions. The fast developing of the anti-dumping legislation is quite strange since thetheoretical basis is still uncertain. Therefore, questions that this paper wants to solveappear. Why anti-dumping actions developed so fast? What stand back ofanti-dumping actions and affect them? How the China react to the current situation?Except the preamble, this thesis consists of five chapters.Chapter one makes a general introduction of anti-dumping. It discusses differentmeanings of anti-dumping throughout the history and also analyzes many statistics inrespect of anti-dumping cases.Chapter two introduces the theoretical basis of anti-dumping actions from themercantilism to strategic trade policy. It also introduces a new thought.Chapter three proves the existence of collective bias by empirical study, and suchbias will affect the anti-dumping policy. At the end of this chapter, one possible reasonis introduced about why anti-dumping actions will never disappear.Chapter four demonstrated how the collective bias was reflected in the WTOanti-dumping legislation.Chapter five discusses what China should do under current situation.