The Effects Of Anti-dumping On Chinese Export And Our Countermeasures

Since the outbreak of the global financial crisis in2008, the world economicgrowth rate in2009dropped to the lowest point in decades. After China joined theWTO, the trade scale has expanded rapidly at a breathtaking rate and has been playinga vital role the international market. Meanwhile, trade remedy measures, cases ofanti-dumping that aim to china have been surging dramatically. Since the WTO hasbeen established, China, as an exporting country, has been suffering anti-dumping innot only United States and EU but also in developing countries. So, it is extremelyimportant to figure out the impact of anti-dumping on China’s exports, the responsethat the government and enterprises make to anti-dumping investigation affectslong-term interests, therefore, this article studies the impact of anti-dumping that aimto china on china’s export,then propose some suggestions based on theoretical andempirical researching. Specific research is divided into the following three parts.Part one, by analyzing the data from the year of1995to2011, the results suggestthat the anti-dumping investigation to China’s prevents the increase of china’s totalexports and the effect is enlarging with time goes by. Compared to the developingcountries, the developed countries have a larger market share in the internationaltrading markets, in which there is a fierce competition, therefore the impact ofanti-dumping investigation on China’s from the developed countries are moresignificant. Meanwhile, the anti-dumping investigation to China’s affects china’sexport structure with time progressing, showing a U-shaped curve, which affects theexport structure first by small increases gradually then reached a peak and graduallytends to zero. Because the developing countries have a high similarity to china’seconomy structure and they are china’s competitors, its impact of anti-dumpinginvestigation to china on china’s export structure is more apparent.Part two, based on price strategy model from the Prisoner’s Dilemma in gametheory, this thesis argues welfare distribution in the anti-dumping game between thetwo countries and what sorts of measures should be taken. Results show that freetrade promotes the development of bilateral trade, the governments should activelyadvocate freedom of trade and boycott trade protectionism to reduce the abuse ofanti-dumping measures, strengthen economic and trade cooperation to promotewin-win cooperation.Part three, this paper analyzed the costs paid by both sides in the anti-dumping investigation and the final earnings through a war of attrition game model, the resultsindicate that the success involved in the anti-dumping cases brings a higher benefit,accordingly, companies should actively respond to anti-dumping cases and avoidover-long case consumption.