A Study On Anti-dumping Problems From Perspective Of Accounting

In the21st century, a majority of countries step into international market gradually so as to boost their economic development. In such a big melting pot, how to make economic development healthy and keep a foothold in the international market is the prime issue which should be taken into consideration for those countries. On one hand, they encourage their domestic industries to export, on the other hand, they adopt various trade protection means to restrict the import in order to improve their own international competitiveness.The aim of General Agreement on Trade and Tariff is to reduce tariff barriers as well as non-tariff barriers among countries to eliminate the issue of discrimination so as to realize the maximal usage of resources and improve people’s living standards. In recent years, a great amount of countries realize that the way they adopted couldn’t make as they expected, so they turn to non-tariff barriers. However, anti-dumping is widely used as an efficient protection way. This thesis is based on accounting theory to demonstrate the status quo and problems of Chinese enterprises involved in anti-dumping accusation by explaining anti-dumping accusation-responding and the anti-dumping rules from America and European Union.This thesis is divided into five chapters. In the first chapter, it aims to demonstrate research background, research significance, research status at home and abroad, research content and methods as well as innovation of this thesis. In the context of what is mentioned above, America and EU are the major economic entity which launch anti-dumping cases against China. But in recent20years, an increasing number of developing countries also launch anti-dumping accusation against China such as India, Brazil and Mexico, which should be alerted by Chinese enterprises. The indirect and direct economic damage caused by anti-dumping accusation has to make Chinese exporters pay more attention to anti-dumping. However, even Chinese exporters are actively responding, the success rate is still very low. The reason is that China as a member of WTO is not approved as a market-oriented economy by other members, which indicates that a great deal of materials is needed to prove the market-oriented economy status of China. Those materials have something to do with accounting, such as market price, sales volume, the constitution of production cost as well as the amortization of period expense. So whether it belongs to dumping behavior or not has a close relation with accounting factors, which is exactly the research significance of this thesis. Now scholars at home or abroad study the topic from the perspective of economy and law, while the thesis is based on the accounting theory, which is the innovation of it.In the second chapter, it aims to explain dumping and anti-dumping behavior from the perspective of accounting, namely, accounting plays an important role in the process of identification of the normal value, export price and dumping margin. It also explains the conceptual framework of anti-dumping accounting.In the third chapter, it places an emphasis on anti-dumping accusation-responding. The reasons of identification of market-oriented economy and selection of surrogate country is of great significance in the process of anti-dumping accusation-responding, and that it will determine the computational process of normal value, which means it determines the existence of dumping and dumping margin. Since China joined WTO in2001, the other members still don’t approve China as a market-oriented economy, which makes Chinese enterprises have to choose a surrogate country to obtain the normal value. How to understand accounting standards of market-oriented economy correctly is the key factor for anti-dumping accusation-responding. Once the exporters are identified as non-market economy, the anti-dumping investigation authority will get the normal value based on the exporting price and market price of the same or similar product in the third country, which means surrogate country. The selection of surrogate country is on the basis of the standard that the level of economic and industrial development of the exporting country should be as the same level with the surrogate country. There are many labor intensive enterprises in China which means the production cost will be much lower than that in the surrogate country. In this chapter, it demonstrates the content of accounting materials required in the process of anti-dumping accusation-responding, which is the content of anti-dumping questionnaire. It has five parts, but the first part is of the most importance for determining how to complete the second and fifth part. The second part is aimed to explain the computational process of market-oriented economy. The third part is primarily involved selling status of the accused products and the computational process of exporting price. The fourth part is for the non-market economy while the last part is for the deepening products. What’s more, accounting factors of anti-dumping and the anti-dumping rules of America and EU have been analyzed in this chapter. America and EU adopt different criteria to identify the status of market-oriented economy. America doesn’t admit China as market-oriented economy and make some demanding conditions to identify while EU regards China as an economy in transition and also makes five strict terms to follow. Grasping and understanding those terms is the best way for the application of market-oriented economy of Chinese enterprises.In the fourth chapter, it introduces some graphs and statistics to indicate the status quo and problems of anti-dumping accusation. In recent years, Chinese enterprises are the target of anti-dumping accusation. From2001to2011, an increasing number of anti-dumping cases are against China, which alerts Chinese enterprises seriously. The low accusation-responding rate and winning rate are the two important problems for Chinese enterprises. Production cost is the core of the anti-dumping accusation-responding, which indicates the importance of the accounting. This chapter also demonstrates internal financial systems, professional talents of anti-dumping accusation-responding and platform of anti-dumping accounting. In addition, it analyzes some problems in the process of the application of market-oriented economy and selection of surrogate country by introducing a case.Last but not least, based on the study mentioned above, some efficient accounting countermeasures have been provided in the last chapter. On one hand, exporting enterprises are supposed to strive for the normal treat as well as the favorable surrogate country. On the other hand, they are expected to perfect enterprises’ cost accounting system and establish protection mechanisms of anti-dumping accounting information. Furthermore, they should train and draw into many professional talents of anti-dumping accusation-responding. Conclusion and drawback are also given in the fifth chapter.