Comparative Research On US、EU Countervailing Towards China

Developed countries are suffering from a financial crisis of their own which produces fear and escalates efforts to create new and more stringent trade barriers and protectionism standards. Accordingly, Chinese products are experiencing escalating trade conflicts in the international markets. Especially, as the two most important trade partners of China, US and EU have frequently initiated countervailing investigations against Chinese products in recent years. In addition to the ever expanding range of investigative targets, the total value involved is growing exponentially. There has been and will continue to be, an effort or demonstration of that fear in regards to the recent US and EU intuitive and countervailing investigations of crystalline silicon photovoltaic products from China. Both investigations came one right after the other. These apparently endemic efforts to control Chinese export markets is obviously as a result of increasing Chinese dominance in the marketplace and it’s growing competitive advantage. The value involved in the EU case only would amount to twenty billion USD, which is the most serious trade conflict against china from EU in terms of total dollars. The dollars are significant, obviously. However the conflict may in fact be more political in nature than economic. Nevertheless the debate and rhetoric continues fuel the trade imbalance fire. This growing number of recent investigations has garnered the attention of both economic and academic experts and analyst alike. Appropriately dealing with US, EU countervailing practices towards China is an indispensible part of Chinese foreign trade relationship.Chapter two introduces the theoretical basis of countervailing, which consists of the fundamental theories and traits of the new trade protectionism. In order to further reflect the new trend towards countervailing forces as they relate to China, the author collects all the cases launched by US and EU in the period of2006-2012and analyzes the evolutions of their respective economies in regards to their countervailing practices towards China separately in chapter three. By comparative analysis of the cases from US and EU, the article summarizes the new characteristics of the practices and concludes the future trends for countervailing against China based on the international economy background and the demonstration effect of countervailing itself. Chapter four refers to the in-depth comparative analysis of the reasons that can be boiled down to the following categories:international background, immediate cause and internal cause. As a result, the author provides suggestions on countermeasures to the countervailing practices by US and EU on both government and enterprises levels.