A Study On U.S Countervailing To China

With the globalization of the international economy and liberalization of international trade, our country is developing fast in foreign trade, export increasing continuously. Even though the good trend of export has led the domestic economic growth, other WTO members have also enhanced their trade protection, which make more trade frictions against China. After AD, with the establishment of market economy in the country, CVD has gradually became the new hotspot of trade friction. Among all CVD investigations against China, the US has launched most cases, with most involving amount as well. Such investigations against China not only blowing our exporting industry, but also affecting policy making of our economy, which means that US-China trade friction is expanding from microcosmic to macrocosmic, switching gradually to systematical dispute. With the background like this, researches on US-China CVD measures seems to be critical.Empirical analysis and standard analysis will be conducted in this researchto investigate US-China CVD measures. In detail, based on empirical analysis on history, data and cases, this study has investigated the current condition and reasons on US-China CVD measures, and will analysis our country’s counterplan; and will provide considerable thought to avoid such issue.The article will be in three parts. The first part includes preface and theory basics (Chapter 1 and 2). Chapter 1 introduced background information, purpose of study and method, besides; a literature review will also be provided. Chapter 2 will be on theory analysis, it will introduce the implementation of AD and CVD, hence provide theoretical support. A brief introduction of provisions on AD and CVD by WTO. The second part will be empirical analysis (Chapter 3 and 4), it will select US-China CVD problem or investigation, a study on US-China CVD measures characteristics and current condition will be investigated. Meanwhile, this part will be focused on analysis of reasons on US-China CVD measures, both on political and economic aspect with qualitative and quantitative analysis. In addition, the paper make the research through the measure of TⅡ index, RCA index and TC index as well as the analysis of both countries political policies. The reason could be concluded as:(1) The politicization of the U.S. trade policy is the root cause for the countervailing to China. (2) The imbalance among US-China trade and trade deficit has led to the huge awareness of the US on trade with China; (3) Some of our industry has obvious advantage, and US government restrict them with CVD measures; (4) China is highly relying on trading with US, which may lead to trade friction; (5) Some of our exporting products is threatening the development of US foreign trade, which stimulate them to implement CVD measures; (6) Problems from Chinese domestic subsidy policy are the internal causes to the countervailing. The third part (Chapter 5) has provided policy recommendations. Based on reasons of US-China CVD problem, recommendations for government, industries and related companies are made from macrocosmic, mesocosmic and microscopic aspects:(1) At macrocosmic level the government should improve subsidization policy; establish good CVD alert mechanism; boost industry structure reform to diversify exporting and expand foreign investment, improve trade imbalance.(2) In mesocosmic level, enhance investigation among industries, pay attention on trends in CVD in other countries, and reserve the talent pool to deal with CVD.(3) For companies, innovation needs to be enhanced, improve add-on value on products, implement product diversification, value on market survey; meanwhile, act on initiative is also required.