Antidumping and the People's Republic of China: Five Case Studies

The People's Republic of China (PRC) has been the number one target of antidumping actions filed by the U.S. Commerce Department on behalf of various domestic industries. One reason for this special status is because the PRC is one of the world's lowest cost producers. Because of the cost structure of its industries and economy, as well as the fact that it tends to manufacture products at the low end of the quality scale, it is able to sell a wide range of products for lower prices than most competitors. Furthermore, because it is classified as a nonmarket economy, special rules must be used to determine the cost of production. It is unlikely that the frequency of antidumping action will decline in the near future. Indeed, because the antidumping laws are becoming more widespread as a result of their adoption by every country that became a member of the World Trade Organization, it is likely that the number of antidumping actions filed against the PRC will increase in the years to come. This paper begins with an overview and history of the antidumping laws and proceeds to examine five antidumping actions initiated by the U.S.Commerce Department against the People's Republic of China. The paper concludes with a brief commentary and recommendations.