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China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement

  • Chad P. Bown

This chapter assesses China's integration into the global trading system by examining areas of international political-economic "friction" associated with its increased trade. We use a number of newly constructed data sets to examine tensions associated with its rapidly increasing trade and the trade policy commitments that China and its trading partners have undertaken as part of its 2001 WTO accession. With respect to China's exports, we examine data on WTO members' use of antidumping and their discriminatory treatment of Chinese firms prior to and following accession. We conclude that the application of antidumping against China has become more discriminatory since its 2001 accession. Furthermore, evidence from a regression analysis rules out the theory that pre-accession discrimination is associated with foreign targeting of high import tariff Chinese products as a WTO accession negotiation strategy. We also provide evidence that WTO members are also discriminating against China's exports by substituting use of new import-restricting "China-safeguard" policy instruments. Next, with respect to China's imports, we examine data on China's antidumping use - now the WTO's fifth most frequent user of antidumping - by targeted sectors and countries. We also provide evidence from products within China's largest sectoral user of a positive relationship between the size of the accession year tariff liberalization and the subsequent resort to antidumping protection after accession. Finally, we examine China's experience in managing frictions associated with its growing role in world trade through formal WTO dispute settlement proceedings.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13349.

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Date of creation: Aug 2007
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Publication status: published as China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement , Chad P. Bown. in China's Growing Role in World Trade , Feenstra and Wei. 2010
Handle: RePEc:nbr:nberwo:13349
Note: ITI
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  1. Bagwell,K. & Staiger,R.W., 1998. "An economic theory of GATT," Working papers 15, Wisconsin Madison - Social Systems.
  2. Chad P. Bown, 2004. "How Different Are Safeguards from Antidumping? Evidence from US Trade Policies Toward Steel," Econometric Society 2004 North American Summer Meetings 434, Econometric Society.
  3. Thomas J. Prusa, 1999. "On the Spread and Impact of Antidumping," NBER Working Papers 7404, National Bureau of Economic Research, Inc.
  4. Knetter, Michael M. & Prusa, Thomas J., 2003. "Macroeconomic factors and antidumping filings: evidence from four countries," Journal of International Economics, Elsevier, vol. 61(1), pages 1-17, October.
  5. Bruce A. Blonigen, 2006. "Evolving discretionary practices of U.S. antidumping activity," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 874-900, August.
  6. Bruce A. Blonigen & Thomas J. Prusa, 2001. "Antidumping," NBER Working Papers 8398, National Bureau of Economic Research, Inc.
  7. Robert W. Staiger & Frank A. Wolak, 1994. "Measuring Industry Specific Protection: Antidumping in the United States," NBER Working Papers 4696, National Bureau of Economic Research, Inc.
  8. Wendy L. Hansen & Thomas J. Prusa, 1995. "Cumulation and ITC Decision-Making: The Sum of the Parts is Greater thanthe Whole," NBER Working Papers 5062, National Bureau of Economic Research, Inc.
  9. Moore, Michael O., 2006. "U.S. facts-available antidumping decisions: An empirical analysis," European Journal of Political Economy, Elsevier, vol. 22(3), pages 639-652, September.
  10. Robert M. Feinberg & Kara M. Olson, 2005. "Tariff Liberalization and Increased Administrative Protection: Is There a Quid Pro Quo?," International Trade 0501001, EconWPA.
  11. Kyle Bagwell & Robert W. Staiger, 2011. "What Do Trade Negotiators Negotiate About? Empirical Evidence from the World Trade Organization," American Economic Review, American Economic Association, vol. 101(4), pages 1238-73, June.
  12. Chad P. Bown, 2005. "Participation in," World Bank Economic Review, World Bank Group, vol. 19(2), pages 287-310.
  13. Bown, Chad P., 2005. "Trade remedies and World Trade Organization dispute settlement : Why are so few challenged?," Policy Research Working Paper Series 3540, The World Bank.
  14. Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
  15. Chad Bown & Meredith Crowley, 2003. "Trade deflection and trade depression," Working Paper Series WP-03-26, Federal Reserve Bank of Chicago.
  16. Maggi, G & Rodriguez-Clare, A, 1996. "The Value of Trade Agreements in the Presence of Political Pressures," Papers 180, Princeton, Woodrow Wilson School - Public and International Affairs.
  17. Patrick A. Messerlin, 2004. "China in the World Trade Organization: Antidumping and Safeguards," World Bank Economic Review, World Bank Group, vol. 18(1), pages 105-130.
  18. Horn, Henrik & Mavroidis, Petros C & Nordström, Håkan, 1999. "Is The Use Of The WTO Dispute Settlement System Biased?," CEPR Discussion Papers 2340, C.E.P.R. Discussion Papers.
  19. Blonigen, Bruce A. & Bown, Chad P., 2003. "Antidumping and retaliation threats," Journal of International Economics, Elsevier, vol. 60(2), pages 249-273, August.
  20. Michael Moore & Alan Fox, 2010. "Why don’t foreign firms cooperate in US antidumping investigations? An empirical analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(4), pages 597-613, January.
  21. Patrick Messerlin, 2004. "China in the World Trade Organization: Antidumping and Safeguards," Sciences Po publications info:hdl:2441/8335, Sciences Po.
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  24. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-85, December.
  25. Choi, E. Kwan & Harrigan, James, 2003. "Handbook of International Trade," Staff General Research Papers 11375, Iowa State University, Department of Economics.
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