The U.S.-China Trade Relationship: Explaining U.S. Anti-Dumping Duties on China

Type:
SCID Working Paper 360

Author(s):

Published:
05/1/08

Region:
China

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Abstract:
Over the past decade, the U.S. imposed more antidumping duties against China than any other country. This paper analyzes the U.S.-China trade relationship by examining these antidumping cases filed against China. Detailed antidumping data show that the number of antidumping cases initiated against China was not proportional to the amount of trade between the U.S. and China. Further, industries that were more likely to file and win antidumping cases were not industries dominated by Chinese imports. Instead, China’s status as a non-market economy explains the number of U.S. antidumping cases filed against China. In the sections of the antidumping process where non-market economy status is considered, the U.S. rules against China significantly more often than other countries, but in parts of the antidumping procedure where non-market economy status is not considered, China is defeated at the same rate as other countries. Further, in non-market economies the fair price of the disputed good is always constructed, and countries are more likely to be found to be dumping when the fair price is constructed. This finding suggests that there is no evidence of Chinese trade manipulation or U.S. discrimination against China in particular. Instead, the U.S. antidumping process is biased against all non-market economies. Such bureaucratic technicalities bias U.S. trade policy toward protectionism and threaten the U.S.-China trade relationship, regardless of the U.S. administration’s intended trade policies.