Characteristics, Determinants Andcountermeasures Of Anti-dumping: From Worldwide And China Perspectives

In theory, Anti-dumping measures are intended to restore fair trading conditions against dumping. Therefore, as three most important and frequently used remedies for unfair practices, anti-dumping, safeguard and countervailing duties are preserved after the foundation of WTO. However, the system put in place to eliminate dumping, i.e., anti-dumping, poses problems itself. With the gradual extension, anti-dumping has become the preferred means by which industries in many countries seek and obtain protection from their governments. Therefore, the concern has shifted from the negative impact of dumping on international trade and now centers on the protection nature and consequences of anti-dumping, which causes unreasonable restriction on free trade. In practice, we need to answer a series of questions about anti-dumping: what is the theoretical foundation of anti-dumping? Is anti-dumping a proper trade restriction measure from the legislative and practical perspective? What is the trend and practical pattern of anti-dumping? What are the elements that affect the initiation of anti-dumping investigation? What impact does anti-dumping policy have on China in practice? In long term, is it necessary to make reform of current anti-dumping policies, etc? To answer the above mentioned questions, it is crucial to carefully study the characteristics of anti-dumping investigation from both worldwide and China perspectives, thereby analyzing the problems and drawing conclusions about the relevant countermeasures.While recent research targets individual country, this dissertation extends this work by using country groups. Since countries in one country group have similar productivity and economy level, similar development stage and environment, they would be in pursuit of same or very similar interests in international trade and politics, and have same or very similar characteristics in anti-dumping. Therefore, this dissertation identifies two main categories of countries: developing countries and developed countries. It further classifies developing countries by level of development; i.e. whether such countries are low income countries, lower middle income countries, upper middle income countries. Developed countries are categorized as OECD or non-OECD high income countries. In all, the dissertation identifies five categories of countries: low income, lower middle income, upper middle income, OECD and non-OECD developed countries.There are four sections and eight chapters in this dissertation.This dissertation begins in section one by reviewing the basic concepts of anti-dumping, introducing background, rationale, method, content and innovation of this research, and summarizing previous and recent relevant researches from perspectives of characteristics, determinants and countermeasures. Based on the above mentioned summarization, the author further points out the drawbacks of those researches and therefore orients this dissertation. The content of section one is mainly developed in Chapter one and Chapter two.With the emphasis on the theoretical research, Section two then carries an in depth analysis of the characteristics of anti-dumping investigations both globally and initiated by and against China, thereby finding out the determinants of initiation of anti-dumping investigation. The content of section two is mainly developed from Chapter three to Chapter five. Through data analysis, Chapter three documents the characteristics of anti-dumping initiations and targets by different country groups during the period from 1980 to 2005 by the following three perspectives: initiations, targets and industrial sectors. Therefore, it discloses the patterns, trends and causations of anti-dumping including the period after the foundation of WTO. Chapter four reveals the characteristics and causations of anti-dumping investigations initiated by or targeted against China, who is the top country subject to anti-dumping investigations in the world. Chapter five provides an empirical analysis of the relationship between anti-dumping initiation and targets in order to test if it has been used as a retaliation tool. Meanwhile, it shows the influences of two most important determinants: amount and growth rate of importation, and added value and growth rate of domestic industrial production.The research in section two reveals the dilemma of anti-dumping system: first of all, as a response to unfair trade practice, anti-dumping has become a tool of trade protection and posed problems itself. Second, WTO advocates giving more concern to the special status of developing countries in the field of anti-dumping, but in fact unfortunately China as a representative of developing countries has become the top country subject to anti-dumping investigations. Third, one of the tenets of WTO is to boost the trade liberalization, and hence in a long term anti-dumping will gradually and eventually disappear, but in fact the number of both cases and initiating countries keeps growing.Therefore, Section three provides some countermeasures against the above dilemmas both from worldwide perspective and from China's perspective, which are covered in Chapter six and Chapter seven. From worldwide perspective, in Chapter six the author indicates that in order to solve the problem it is crucial to make reform of anti-dumping policies. First of all, to launch and then intensify the public interests principle is a perfect point to start on. Second, the economic analysis of public interests in initiating countries proves the feasibility of the proposal. Finally, the author then creatively advocates the application of'coordination mechanism in anti-dumping public interests'in order to maximize the benefit of the whole society in initiating country. Meanwhile, Chapter seven focuses on the discussion of countermeasures from China's perspective. Starting from an anti-dumping case study between USA and China, it reinforces the roles that should be played by government, trade association and enterprises in anti-dumping investigation, and then draws some suggestions about countermeasures against anti-dumping investigation and the strategy that China should apply in the new round of WTO negotiation.The final section summarizes the main conclusions and further makes prospects, which is developed in Chapter eight.This dissertation has four aspects of innovations and contributions.1. This dissertation extends the traditional research perspective by setting country group as object of study, using initiation country, target country and industrial sector as cut-in point, and pointing out the concepts such as anti-dumping retaliation rate, anti-dumping success rate and anti-dumping contribution rate. It systematically analyzes the trends and pattern of the occurrence, development and evolvement of anti-dumping, thereby consummating anti-dumping theories.2. By using data analysis and empirical study, this dissertation investigates more fully the impact of different country group's import and its growth rate, industrial production growth and its rate on the number of anti-dumping cases of and initiated against respective country groups. It also reveals that the initiations of anti-dumping by different country groups have retaliation incentives, and the influence of various elements on anti-dumping investigations initiated by different country group.3.'Coordination Mechanism in Anti-dumping Public Interests'Anti-dumping authorities always face a dilemma when considering the application of anti-dumping mechanism. Traditionally there is a conflict of interests between the domestic producers in competing industries and consumers, whose loss from protection is marginalized in the system and interests cannot be protected simultaneously. In order to maximize the benefit of the whole society, this dissertation creatively advocates the application of 'coordination mechanism in anti-dumping public interests'. It includes the expression and collection mechanism of consumer interests and compensation mechanism of public interest, whose core part is to establish the'dumping and anti-dumping compensation fund'.4. After systematically analyzing the characteristics of anti-dumping investigations initiated by and targeted against China, this dissertation indicates detailed suggestions about China's trade policy of anti-dumping to response to the voice from the public, industries and academe for defense and retaliation. China, on one hand, should act in a reasoning manner and restrict its initiation of anti-dumping. On the other hand, it should actively defense against the investigation initiated by other countries, and lodge a complaint to WTO Dispute Settlement if necessary. Meanwhile, in order to encourage the defending for anti-dumping litigation, China should provide a new insurance called'insurance of the expenses for defense against anti-dumping litigation', thereby alleviating the enterprises'risk and expenses.