The Adverse Economy Effects Of U.S. Imposing AD And CVD Duties Simultaneously Against Chinese Products

After joining the World Trade Organization, trade volume of China has increased significantly, especially the export volume. The significant trade figure, one the one hand, boosted the economy as a whole, while on the other hand aggravated China trade relation with other WTO members, as more and more countries take trade remedy measures against China. In terms of the total number of trade remedy measures against China, among all the countries, U.S. ranks the first. For solving Sino-U.S. trade friction, anti-dumping measure and safeguard measure have always been the most frequent measures taken by America. But with the end of China transitional period stepping into WTO, Sino-U.S. friction tends to step onto a new level, the institutional friction. The fact that U.S. has taken more and more countervailing measures against goods from China eloquently proves this phenomenon. Besides during recent years, U.S. has used AD and CVD measure together more and more frequently. The sky-high AD and CVD not only place an influence on the exports of our country, but also interpose policy making and implementing of our country.The president of U.S., Barack Obama, signed the Tariff Act Amendment on March3th,2012. The new act explicitly permits U.S. to take countervailing measures against "Non-market Economy Country", like China, which has provided the law basis for U.S. taking AD and CVD against Nonmarket Country. To respond the increasing AD and CVD measures from U.S., we should figure out its reasons and its influences on our economy which should be the value of this paper.This paper is divided into four parts,Chapter I:This chapter first introduces the background of AD and CVD measure from America, and combining its background, explains the difficulties of combating the AD and CVD measure. On the basis of that, the value of this paper has been raised. In order to better analyzing this topic, former research findings have been read and concluded. At last, this chapter presents how the paper was formed, its innovation and drawbacks.Chapter Ⅱ:In the first part of this chapter, the history of U.S. taking AD and CVD measures against China has been reviewed, and then to explaining the status quo of AD and CVD taken by U.S. against China, all the AD and CVD cases against China taken by U.S. have been listed. Second through comparing these cases from U.S. with the ones from other countries, some distinguishing features of AD and CVD cases from U.S. have been concluded, such as high rate of affirmative decision, double tariff, some products frequently relating to such cases etc. At last, with introducing the explanations and regulations relating to the AD and CVD cases in both General Agreement on tariffs and trade and U.S. municipal law, the legal basis of such cases from U.S. has been presented.Chapter III:This chapter expresses several key points of this paper, which is the influence of AD and CVD measures exerting on both Chinese economy and U.S. economy. First although taking AD and CVD measures could protect the U.S. domestic industries, it could also be harmful for the whole welfare of America, and besides that it tends to worsen its domestic employment status. As a result of AD and CVD measures, under some cases U.S. will import same products which should be imported from China from other countries. Second the major influences of AD and CVD measures against China are as followed:owing to the high AD duty and CVD, the exports of the relating products decrease under some cases; employment of relating industry is also influenced; AD and CVD is harmful to both the development of high-tech industry and the whole trade environment of our country.Chapter VI:In order to better providing the countermeasures for our China to deal with AD and CVD measures, the underlying reasons of such cases should be found. This chapter first explains these reasons from the standpoint of both U.S. and China, and then on the basis of that presents some ways to respond this problem, including the response of the government and relating enterprises.