International Anti-dumping And Chinese Iron And Steel Foreign Trade

As iron and steel industry is a fundamental industry in the economy,it has been the focus of international anti-dumping, it is not only the industry that has been brought up to anti-dumping proceedings and sanctions most often in the world, but also the industry that has encountered anti-dumping and other trade frictions most often in China. From1999to2009, China’s iron and steel product exports had encountered a total of162cases of anti-dumping investigations,112cases of the anti-dumping measures, and the ratio of anti-dumping measures was69%. If Chinese steel companies continue to be suffered from international anti-dumping complaints and sanctions, it will not only seriously affect Chinese bilateral trade relations with other countries, but also bring great impact to long-term development of China’s iron and steel industry. How to study systematically the status, characteristics, causes and effects of anti-dumping trade friction against to Chinese steel product, and deal with steel product international trade friction effectively, has become the urgently need to address problem of Chinese government and steel companies.In order to meet the research needs, first, this paper builds up a new steel anti-dumping database in accordance with international classification standards, calculates the anti-dumping investigations index, anti-dumping measures index and anti-dumping intensity index of China’s steel exports in detail, conducts international comparisons of anti-dumping investigations index, anti-dumping measures index, anti-dumping intensity index, international competitiveness and added value of the iron and steel industry chain, analyzes the reasons of China’s iron and steel industry frequently result in anti-dumping and other trade barriers, and achieves deeply analysis of anti-dumping and other trade frictions status and characteristics in China’s steel exports. Second, comparatively study the substantial factor of frequently antidumping against China’s steel product export by the United states, Canada and Mexico through perspective of intra-industry trade. Third, based on detailed data, using statistical comparison, analyzes trade effects of non-trade effects of anti-dumping and other trade frictions on China’s steel products. Fourth, firstly introduces mechanism of anti-dumping and other trade barriers to a general equilibrium framework to build a computable general equilibrium model, respectively, using multi-static computable general equilibrium model and the Chinese dynamic computable general equilibrium model, simulates and predicts the effect of the declining of export demand and the deteriorating investment environment on China’s iron and steel industry itself, its macro environment and micro-environment of up and down stream of iron and steel industry chain, which is caused by anti-dumping and anti-dumping duty.Findings showed that:①in the long future, China’s iron and steel industry, especially iron and steel export enterprises will be persecuted to anti-dumping and other international trade friction, China’s foreign trade in steel products will therefore be restricted; although the absolute amount of anti-dumping experienced an increase, china’s ability to deal with dispute of anti-dumping and other international trade friction is gradually improving, China’s international trade friction disputes can be controlled and acceptable. The anti-dumping and other trade frictions against Chinese steel export have breadth and concentration, there has been a domino effect. The impact of anti-dumping activities on import amount from China by the developed countries is not expected big, but because of the big base of bilateral steel trade, its overall impact can not be underestimated.And AD investigation index against china by developing countries(except India) is bigger than1,which means there are strong anti-dumping activities against Chinese steel export to some developing countries, because of the small base of iron and steel trade, it will not fundamentally affect the situation of China Steel’s foreign trade.②From1999to2009, the involved products arisen by the main source of anti-dumping against Chinese steel export have big anti-dumping trade friction tension, its intra-industry trade index are relatively small, and they are in a larger trade deficit imbalance. This means when a country’s trade deficit with China is a large imbalance, it is more likely to launch anti-dumping case against Chinese steel product export.③the United States launched antidumping case against Chinese nail and ring welded carbon steel pipe will have a strong anti-dumping investigation effect and the confinement effect, the exports have trend to transfer to non anti-dumping countries, and this transfer includes not only the inter-State trade transfer effect, but also significant inter-industry trade transfer effect. The United States’anti-dumping against China nail and ring welded carbon steel pipe enhance the prices of these products, and lead to antidumping-jumping FDI effect. China’s steel enterprises will circumvent anti-dumping duties by investing in the United States to build up steel mills and other "going out "strategy.④China’s iron and steel industry being suffered by U.S. anti-dumping causes damage to China’s overall level of benefit, and the extent of the damage will increase gradually as the U.S. anti-dumping duty rate on Chinese steel product rising up. U.S. anti-dumping against Chinese Iron and Steel product will reduce china’s exports and reduce China’s trade surplus, also it is useful to cut down U.S. trade deficit, but the effect is small, although there are trade transfer effects on other economies, but the magnitude of its impact is minimal. However, this effect will gradually increase as anti-dumping duty rate rises up. Anti-dumping actions will make the domestic steel industry output decline, for those small and medium sized steel enterprises who have weak capacity to transfer the costs, they are likely to face output cut or closure, which will undoubtedly bring iron and steel employees very negative consequences, then there will be more engaged workforce become unemployed or transfer to other industries, this will bring weakness to the labor market and real wages will decline.⑤The decline in export demand caused by anti-dumping and other trade frictions will result in significant negative effects on China’s real GDP in the following1-2years, and the negative effects will increase with the decline in export demand rising up, but as time goes by, the negative effects brought out by decline in export demand will be weakened and gradually become positive effect. The effect caused by deteriorating investment environment in the context of anti-dumping and other trade frictions will be even greater as the rate of return on investment in iron and steel industry is expected to decline. With the impact of falling export demand in the context of anti-dumping and other trade frictions, the export will be suppressed, but absorptive capacity of the local market for the steel products will enhance. And inhibition of export was significantly greater than the promotion of the local market absorptive capacity, which is the main reason that leads to output declining. When it is impacted by the effect caused by the deteriorating investment environment in the context of anti-dumping and other trade frictions, exports will also be inhibited, but the obvious weakening of local market absorption capacity for iron and steel product is the main reason to lead to output declining.Based on the above findings, pertinence policy recommendations are proposed at the end of this article, which concern on foreign trade strategy of China’s iron and steel industry and response to anti-dumping and other trade frictions.