Study On The Accounting Adduction During China's Responding To Anti-dumping Investigations

Anti-dumping plays an important role in international trade. It can influence one country's export environment as well as the domestic economy and industry. With the improvement of the status in the world economy and trade, China has become the largest victim of anti-damping. It is calculated that since E.U. carried out the first anti-dumping investigation on Chinese saccharin in 1979, foreign countries have launched above 500 anti-dumping cases on China. Even in 2002, in which China joined WTO, the number of the anti-dumping cases is up to 47. However, the performance of Chinese enterprises in dealing with anti-dumping investigations is not very good, Most enterprises failed in accounting adducing and defending. They are ignorant of the related rules and are not aware of anti-dumping accounting.Basing on above studying background, this thesis tries to analyze and study the accounting adduction problems exist in China's responding to anti-dumping investigations. By studying many relevant rules and anti-dumping cases at home and abroad, combining law and accounting, using many research methods, this thesis finally proposes some necessary measures and policies which are feasible in the responding to anti-dumping investigations.Research results:1. The history of China's responding to anti-dumping investigations shows that anti-dumping is to a great degree an accounting dispute on the basis of law. Plenty of accounting data are needed in the process of applying for "Market Economy Status", filling in the Questionnaire and responding to the on-the-spot investigation, as well as during the accounting statement and answer. There are several requirements about the accounting data in each anti-dumping law. So it is very important for the author to study anti-dumping from accounting's point of view.2. It is essential to be aware of the different requirements for accounting adduction in different anti-dumping laws, which can promote Chinese enterprises' ability of responding to anti-dumping investigation and perfect the relevant legislation in China.3. Even though the anti-dumping investigations on Chinese exported products launched by foreign countries began in 1979, by now, China has become the largest victim of anti-dumping in the world. While encountering a large number of anti-duping cases, Chinese enterprises failed in responding effectively. There are some problems about accounting adduction exist in the respondingto anti-dumping. They are as following: accounting data being insufficient; the data available being lack of utility; and CPAs being unable to provide relevant services.4. There are so many reasons for the existing problems. The reasons can be classified into two aspects. The first one is about the domestic frame work problem, while the other is about the accounting system problem.5. In order to handle the accounting adduction problem exist in China's responding to anti-dumping investigations, the paper proposes some measures. They include: (1) to quicken the internationalization of China's accounting rules; (2) to perfect the accounting control system of the enterprise; (3) to constitute an accounting information platform for anti-dumping; (4) to enhance the skill training for CPAs and the cultivation of anti-dumping experts.Innovating points:The innovation of this thesis lies in that the study is based on the combination of foreign trade, law, accounting and finance. The author makes elaborate comparisons on Normal Value, Export Price and Margin of Dumping among WTO Anti-dumping Agreement, American Anti-dumping Law, European Anti-dumping Law and Chinese Anti-dumping Law. The comparison has become the stable theory basis for the study.Policies suggested:1. Quickening the reform of government facilities to joint stock system. The government should deepen the reform of economic system, urge enterprises to harmonize the relation between the rights of use and ownership and establish the modern enterprises system. China should have the resources allocation adjusted by the market and try to become a market economy country.2. Setting up a reasonable, effective mechanism for foreign trade management. The government should enhance regulating the export competing order, set up a special managing organization to supervise the major export products of China and finally form a reasonable and effective export managing mechanism.3. Encouraging and leading enterprises to respond to anti-dumping actively. The government should give great publicity to "The Regulations about China' Responding to Anti-dumping Investigations"; give allowance to the enterprises which respond actively or succeed in responding, while punish the enterprises which respond passively; and establish a canonical rule of " Who responds, who benefits".4. Establishing and perfecting the export prewarning mechanism and system. The government should use the administrative means to build an anti-dumping database of the country; use the experience of other countries for reference to set up anti-dumping foundation; and enhance the relations among foreign embassy, commercial organization, trade society and law office.