The Trade Deflection Of US Antidumping Filing Against China

Firstly,this paper describe the current trade situation between China and USA as well as the antidumping situation that USA initiates to China.The total trade volume of two countries has risen steadily.Meanwhile,China’s trade surplus with the United States has been expanding year by year due to more labor-intensive products’ export.A large number of labor-intensive products are exported to the United States,this may result in squeezing the United States domestic jobs and having a negative impact to related industries to some extent.In order to protect the domestic economy,the United States initiated anti-dumping investigations along with affirmative final filing and high antidumping duties level,to China frequently on the grounds of China’s non-market economy status.After reviewing the related literature on antidumping,we find that the most variaties of researchers analysed antidumping deflection on product level rather than firm level,ignoring the enterprise may be the stakeholders.Facing up to violent antidumping investigations,Chinese exporters response actively,need to do more to avoid the loss of interest as well as expand market share worldwide Simultaneously.Given USA and EU are our the most important trade partners,we find there are similarities on export structure between China to USA and China to EU through to describe the trade structure.Therefore,we choose EU as the third market to support our empirical analysis about antidumping deflection.From the perspective of firm and product level,Using firm and product level China Custom data of all Chinese exporters,combing the World Bank global antidumping database over the 2000-2013 period and basing on HS8,we investigate the trade deflection effects associated with Chinese exports to the EU market arising from US antidumping investigations.Furthermore,this essay focuses on the trade deflection of heterogeneous exporters.We choose those firms exporting products on HS8 suffering from antidumping as treatment group,and choose other trade products that HS6 is the same as those products in treatment group as control group.Using DID economic model,We find that US antidumping investigations on Chinese exports cause a substantial decrease in the export volume and quantity at the HS-8-digit firm-product level to US market as soon as imposing the antidumping duties.We investigate possible trade deflection to EU countries,near half(39.95%)of Chinese exporter-product pairs are reoriented to EU markets during different antidumping periods.We further explore the effect of exporters’ heterogeneity on trade deflection to EU market,and the results show that the exiting from US market as well as transferring to EU market after final ITC determinations is exerted by state-owned exporters versus to other counterparts,by general trade exporters relative to processing-trade exporters and by multi-product with respect to single-product.