Research On Accounting Strategies Of Enterprises In China Counteracting Foreign Anti-dumping

The economic development of China and other countries are closely intertwined in recent years. Export has been developing rapidly. The data showed that China was the largest exporter of the world in 2009. China has stepped into the abyssal zone of trade friction accompany with the rapid development of china economy. China has undergone more anti-dumping investigation than any other country for 14 years. The application of anti-dumping is used to be a very effective means of trade protectionism by importing countries to restrict export from other countries. It will produce the adverse effect on the corresponding industry of the exporter. China was burdened with anti-dumping deeply. It is a difficult problem how to be good at repartee. The study on the key strategies for solving this problem is of far-reaching theoretical and practical significance. The research on anti-dumping is mostly done in the view of economics and law before. The problem of accounting behind anti-dumping has been paid more attention to in recent years. The comparison between cost and price is the essential aspect of dumping. Accounting is the technical means to counteract anti-dumping. It is new and meaningful to research on complex anti-dumping from an accounting perspective. The paper takes enterprises as object of study and analyzes past achievements and lots of examples. By means of the combination of normative study and empirical study, survey study and comparative analysis, the dissertation proposes accounting strategies to offer help against anti-dumping.The paper is divided into eight chapters that are the combination of five parts. Chapter one is Introduction proposing value of the paper from the severe situation of anti-dumping. Partâ…¡includes chapter two and chapter three is foundation of the paper. It analyzes the relationship of dumping and accounting. Partâ…¢includes chapter four and chapter five analyzing cost strategies counteracting anti-dumping. Partâ…£includes chapter six and chapter seven analyzing accounting skills and strategies counteracting anti-dumping investigation. Chapter eight summarizes main points and analyzes the relationship of accounting strategies. The chief contents and conclusions in the dissertation are as bellow:(1)The depth of digging and analyzing of the correlation between dumping and accounting will be of great value to the paper. There are two core concepts implicit in dumping, export price and normal value. They are also the key factors in determining dumping. The content of accounting is embodied in the definition of dumping because accounting data is the basis for determining export price and normal value. Important concepts associated with dumping, such as market economy status and surrogate country system, have certain standards related to accounting operation.(2)Anti-dumping is a legal problem the same as other lawsuit in the course of which evidence is to play an important role. It is necessary to contest evidences in different bodies, petitioner, defendant and judge. Accounting information has become effective legal evidence counteracting anti-dumping which can apply for market economy status, fill in investigation questionnaire and cope with on-the-spot investigation.(3)Principal qualitative characteristics of accounting information are reliability, relevance, comparability, understandability and importance. Accounting information is legal evidence in the environment of anti-dumping. There is proper response to litigation in qualitative characteristics of accounting information. Reliability, relevance, comparability and importance have different connotations. Acceptance evolved from understandability is the most legal nature of the qualitative characteristics and the core of qualitative characteristics because all the evidence will eventually need to be verified with the ruling. Reliability, relevance, comparability and importance are precondition of qualitative characteristics and are in the service of acceptance.(4)Cost information is the core of anti-dumping investigation. The key counteracting anti-dumping is to provide cost information accepted by investigation authority. Investigation authority remains dubious about cost information provided by Chinese enterprises because the information does not have universality and adaptability and does not reflect the real cost completely and fairly. Accounting Standard for Enterprises issued in 2006 has expanded the scope, standardized the content of costing and method of costing in terms of inventories, borrowing costs, fixed assets, wages and salaries of employees and biological assets. Accounting Standard for Enterprises was proved to achieve international convergence and was recognized by international community. Standard is a kind of institutional arrangement after all. Implementation of standard plays an important role in how effective the standard is. The implementation of standard and standard itself are equally important. Only if enterprises carry out Accounting Standard strictly, the quality of accounting information will be secure. The universality of information will be resolved thoroughly. It is necessary to take expedient measures according to the specificity of anti-dumping because the investigation of costing from authority is very comprehensive, delicate and almost harsh. This does not mean breaking the rules. It means the anti-dumping-oriented on the basis of a piece of account in the context of Accounting Standard. Only if doing those better enterprises can accumulate appropriate data to counteract accusation of dumping and resolve the adaptability of information.(5)The investigation of anti-dumping is complex. There are three sections that are the most important and can determine the ultimate fate of enterprises in process of investigation, investigation questionnaire, on-the-spot investigation and hearing. It is important to be familiar with requirements of investigation and master the necessary skills and strategies. The purpose of sending out investigation questionnaire is to gather information required by investigation authority. Investigation questionnaire has a wide range of content and focuses on the three important accounting points, such as general information, sales information and production. Filling in investigation questionnaire is highly professional work with skills. On-the-spot investigation is the evaluation of accuracy and integrity of information filled in the investigation questionnaire and the stage of looking for more evidence. The enterprises should spare no effort and prepare actively. The enterprises can amend bad information and reverse the unfavorable situation by making the best of on-the-spot investigation. There are two stages in on-the-spot investigation, preparation and investigation. The former calls for comprehensiveness, and the latter requires meticulousness. Hearing is a good platform on which rules giving enterprises self-defense. Enterprises have the power to express that they do not have dumping and the causal relationship of dumping and injury is inconsistent. Hearing can determine the judgment and even affect the process of investigation. The principle counteracting hearing of surrogate country and price is to deny proposal of investigation authority and put forward recommendations in our favor by stating the difference of price and cost between surrogate country and our country. The principle counteracting hearing of injury is to confirm that the financial indicators are not affected by import from China and cut off the link of injury and dumping.(6)We come to the following conclusions on a survey. Firstly, enterprises think that cost accounting plays a key role in counteracting foreign anti-dumping. Cost accounting is the most key factor to deal with anti-dumping. Secondly, the implementation of Accounting Standard is not optimistic. Some do not perform Accounting Standard. Enterprises experienced anti-dumping investigation carry out Accounting Standard better than those have not experienced anti-dumping investigation. The latter is lack of adequate enthusiasm. Thirdly, most of enterprises do not have knowledge how to counteract foreign anti-dumping and need some guidance. (7)The accounting strategies counteracting foreign anti-dumping are interrelated. The target is to apply accounting information to the best extent and to provide favorable and strong evidence. One ineffective will have negative impact on the implementation of other strategies. The effect counteracting foreign anti-dumping needs the concerted efforts of the strategies.