Dose The Anti-dumping Investigation Work?

Dumping refers to the behavior of exporting products to other countries at a price lower than its normal value,which will bring the competitive advantage and long-term monopoly profits.In response to the dumping strategy,many countries have introduced their own anti-dumping laws to protect domestic enterprises.Generally,the determination of dumping behavior needs to have fallowing factors:the existence of dumping behavior,the real harm or threats caused by dumping behavior and the causal relationship between the behavior and damage.However,the rights of governments to decide whether dumping happens make the abuse of anti-dumping policy common.In 2017,China became the world's second largest trading nation,with 12.7%of global merchandise exports and 10.22%of global merchandise imports.While actively engaging in trade with the world and improving national welfare,China has also become the largest anti-dumping victim.In 2017,the anti-dumping investigations initiated against Chinese enterprises accounted for 22.77%of the global total.However,there are very few anti-dumping investigations initiated by China.This shows that our government and enterprises have not been deeply aware of the significance of anti-dumping policies in protecting China's dumped enterprises.The research of anti-dumping behavior mainly focuses on the causes of anti-dumping policy and the economic effects of it.The economic determinants of anti-dumping include the country's macroeconomic growth rate,unemployment rate,trade deficit and currency exchange rate.The political determinants include the complainant's political power,competitive relationship,and retaliatory effects.There are four verified trading effects of anti-dumping policy:trade destruction effect,trade deflection effect,trade diversion effect,and trade depression effect.At the micro level,anti-dumping policy will influent the export and long-term technological progress of companies in initiating country.Using data from Chinese listed companies,this paper studies the protective effect of 70 anti-dumping investigations initiated by China from 2002 to 2015.Our research has four main conclusions.Firstly,Chinese government is more likely to use anti-dumping policies when the performance of companies declined.Secondly,the protective effect of anti-dumping investigation begins to be highlighted four years after the initiation of anti-dumping investigation.Thirdly,when companies are larger,they will suffer more in the short term.However,in the long run,such companies gain more net profit.At last,the operational capabilities of the company will strengthen the company's benefits in the anti-dumping process.Anyway,the anti-dumping investigation can benefit the development of companies involved,but taking different measures for different companies will make full use of anti-dumping investigation.Our government needs to pay attention to the following points.First of all,our government must use anti-dumping policies more actively to protect domestic enterprises.Secondly,they need to pay attention to the short-term effects of anti-dumping policies and use comprehensive means to ensure the achievement of short-term policy objectives.Thirdly,policy implementation needs to be differentiated for large and small businesses.Last but not least,our government should focus more on the improvement of China's business operations capabilities to guarantee the company have the ability to make full use of anti-dumping policies.