Economic Effects Of China’s Anti-dumping Measures

In today’s world, the acceleration of the refinement of international market’s division and globalization makes frequent trade between nations. Among the trade protection measures taken in various countries, anti-dumping has become the most frequently used among all of the means of trade protection with the characteristics of flexible and covert. China joined the World Trade Organization in 2001, which has constantly increased the volume of trade. Now China has become the biggest exporter and the second importer in the world. This will inevitably lead to trade friction of all kinds and cause various trade disputes. In recent years, the number of China’s anti-dumping investigations and sanctions has been increasing year after year, and China has become one of the few most countries of which situates the accusation of the world anti-dumping. Therefore, a positive response to The foreign anti-dumping against China and taking anti-dumping measures to protect the domestic import competing industry is particularly important.In addition to the protection of the domestic import competing industries and restoring fair competition, the implementation of anti-dumping also bring about certain negative effects, inevitably causes damage to other stakeholders which related to import competing industry, such as upstream and downstream industries and consumers. Because the number of our country’s anti-dumping measures increases year by year, the negative effects brought by foreign anti-dumping continuously emerging. Implementing antidumping measures needs to solve such a problem: how to make anti-dumping not only protect their encounter anti-dumping extrusion industry, but also makes the negative effects caused by anti-dumping decrease to a minimum. Most of the domestic and foreign research on economic effect, especially on the negative effect of anti-dumping are qualitative analysis.. Less is quantitative research, and comprehensive and systematic analysis is also one of the few. In 2009, China took anti-dumping measures to terephthalic acid which is imported from South Korea and Thailand, which involved the largest amount of money in all of the Chinese anti-dumping cases so far. This paper comprehensively analysis the economic effect produced by the case, and finally find that, in a short period(1 to 2 years), the anti-dumping indeed effectively increases the market share of domestic Pure terephthalic acid enterprises and carries high margins. However, with the passage of time, the positive effect of anti-dumping is greatly weakened, but also brought a series of negative effect: low level redundant construction of protected industry, serious waste of resources, the development of upstream and downstream industries have also been implicated. The external dependence of upstream industry--p-xylene industry is rising year by year. Downstream industry--polyester industry bear the higher cost burden, at the same time the terminal textile and garment industry demand low. Loss is severe. In the last part by the reference of the terephthalic acid anti-dumping case, this paper gives some opinions about some problems our country will face when taking anti-dumping measures in the future and how to overcome them from three angles: before, during and after the event. It points out that our country should be in the principle of considering the overall interests of the state, not only considering the interests of domestic protected the industry, but also consider the associated upstream and downstream industries and consumers’ interests.