The dumping dragon: Analysing China's evolving anti-dumping behaviour

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Abstract

China is a major target for anti-dumping measures by both developed and developing countries. Its rapid industrial transition to higher value-added sectors brings it in direct conflict with the US and the EU. Anti-dumping measures have consistently been employed by the US and the EU to protect their domestic markets from encroaching Chinese exports. In the initial few years of joining the WTO, China rarely initiated any complaint in the WTO Dispute Settlement Mechanism (DSM), while facing several complaints itself. This approach has now evolved. China appears to have acquired the knowledge and capacity to access the WTO DSM for safeguarding its interests. As countries attempt to recover from the global financial crisis through an export-led strategy, the likelihood of developed countries using antidumping measures and countervailing duties (CVD) to protect their domestic sectors consequently increase. With this background, this paper tracks China's experience in the WTO with reference to antidumping disputes (both as a complainant and as a respondent). The recurrence of disputes between China and the US/EU is frequently due to alleged currency manipulation that gives China an "unfair" advantage in exports. Tins unfairness is then made the basis of anti-dumping measures and countervailing duties. The paper analyses the developments in recent disputes between involving China. Furthermore, this paper aims to anticipate the effects of the 2016 expiry of the non-market methodology that is currently used to calculate dumping margin against Chinese exports. Once free from being subjected to a surrogate method of calculating dumping margin, China can potentially flood the world market with competitively priced exports that could have long-term consequences for industries in the US and the EU and other developed countries.
Original languageEnglish
Pages (from-to)114-125
Number of pages12
JournalThe Business and Management Review
Volume4
Issue number2
Publication statusPublished - 2013

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