The Effect Of Chinese Antidumping Measures On Chinese Firm Performances And Survival Rates

Recently, China has become a major exporter in the world, along with China’s growing trade transactions, the trade friction between China and its trading partners has been gradually deepen. The data showed that, since China has joined in the WTO, the antidumping cases which initiated by China were increasing. Which means, on one hand, other countries occupied China’s market in a "dumping" way, which of course cause to China’s industrial damage. On the other hand, other countries in order to protect their own industries to limit the export to China. In this situation, China take "tit for tat" for response. Because Theoretical and empirical showed that the conventional measures can only partly reduce the antidumping cases or relief the damage to some extent. The most effective way is to file antidumping cases. However, Chinese government rarely used "an eye for an eye" on the foreign-initiated antidumping actions. One important reason is that there is little study on the effect of Chinese antidumping measures on domestic firms.In response to this situation. From heterogeneous firm perspective, this paper analysis the mechanism of action and the effect of Chinese antidumping measures from theoretical and empirical levels on Chinese firms performance and survival rate. Because China’s antidumping cases were more initiated in chemical industry, his paper selected the Antidumping typical case "Bisphenol A" which initiated in2006for South Korea, Japan, Taiwan and Singapore by using the PSM Method to analyze the effect of antidumping measures on Chinese protected firms.The results showed that:Firstly, about the antidumping measures "bisphenol A" firms performance. First of all, antidumping measures significantly improved the performances of "Bisphenol A" industry on productivity, cost, profit ratio and asset-liability ratio, moreover, productivity in this industry was improved the most, which also led other indicators improved. Above all, This paper proved the conclusion that antidumping measures truely improved the protected firms’s performances.Secondly, about antidumping measures "bisphenol A" survival rate. The empirical studies showed that Chinese antidumping measures on the protected firms were negative, which means, taking this measure actually reduced the protected "bisphenol A" firms’ survival rate.Based on the above conclusion showed that in "bisphenol A" firms. Chinese antidumping measures improved "bisphenol A" firms’performances, meanwhile, this measures reduced the survival rate. But in the end, proving the Chinese antidumping measures reasonable from two dimensions. Based on this, we propose recommendations to improve China’s import competing firm performances and survival rates for the target of antidumping initiation mechanism.