Analysis Of The Impact Of Anti-dumping On China’s ODI

After World War Ⅱ,developed countries began to resort to anti-dumping trade barriers to protect domestic industries with the reduction of tariff levels.Since 1990s,the number of anti-dumping investigations,the initiating countries and the amount involved increased rapidly.The situation of anti-dumping trade barriers facing China is particularly serious.China has been the country that has suffered the most anti-dumping investigations for 23 consecutive years.At the same time,China’s overseas direct investment has been developing rapidly.In 2018,China’s overseas direct investment stock ranked second,covering all sectors of the national economy,and was distributed in 190 countries(regions)around the worldIn this context,this paper firstly reviews the theoretical and empirical studies on the impact of anti-dumping on ofdi at home and abroad,and establishes an analytical framework from the perspectives of country and industry.Then,from the aspects of quantity trend,country distribution and industrial distribution,the paper introduces the situation of anti-dumping barriers and ofdi in the form of charts.At the same time,the relationship between anti-dumping and China’s foreign direct investment is grasped from the macro level by combining the relevant data of countries and industriesThe paper then does the empirical analysis,with the data of 40 countries(regions)in China between 2003 and 2018,the results show that the influence of the anti-dumping investigation on China’s foreign direct investment is positive to 1%significance level,the anti-dumping investigation would lead to foreign direct investment to China due to circumvent of trade barriers.The paper further divides 40 countries into two groups according to whether those countries belong to the One Belt And One Road route initiate,whether those countries recognize China’s market economy status,the results showed that with all samples in various countries,anti-dumping all has a positive effect on foreign direct investment in China.At the same time,the anti-dumping investigation of One Belt And One Road countries has a greater impact on China’s ofdi than that of non-One Belt And One Road countries,and the anti-dumping investigation of developed countries has a greater impact on China’s ofdi than that of developing countries.However,whether China’s market economy status is recognized or not has no great difference on the resultThrough an in-depth analysis at the industrial level and a chart analysis of the collected micro data,it is found that the metal industry is not only the key field of China’s ofdi but also the major area suffering from foreign anti-dumping investigation,and there may be a connection.At the same time,specific analysis of One Belt And One Road countries also shows that there may be a certain relationship between anti-dumping and fdi in the manufacturing sector.No obvious correlation was found between anti-dumping and fdi in other industriesIn the end,it is suggested that we should pay attention to the prevention of fdi friction,consider the overall long-term investment planning and enhance China’s industrial competitiveness.