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Reasons behind Chinese Producers’ Various Responses to EU Anti-dumping Investigation : A Case Study Test

by Cui, Weijing

Abstract (Summary)
EU and China are important trade partners to each other; trade relationship is one of their crucial bilateral relationships. Within EU-China trade relationship, the dumping and anti-dumping issues play an important role. When EU commission initiates anti-dumping investigation, Chinese producers always have different responses. This study mainly focuses on the reasons behind Chinese producers’ various responses facing EU anti-dumping investigations. By digging out the real reasons behind Chinese producers’ various responses, this study is expected to make some contribution to the dumping and anti-dumping discussion between China and EU in academic level and to make some contribution to the policy adjusting of both sides in political lever.Some hypotheses drawing from a Chinese lawyer Tao Jingzhou’s claim in an interview are tested in this study. These hypotheses listed some possible factors affecting Chinese producers’ responses. There are many anti-dumping cases between China and EU, CFL-i (Integrated electronic compact fluorescent lamps) case initiated in April 2000 was chosen as a research object for case study in this research. When it comes to theory, Hirschman’s theory of exit and voice is used as the basic theory structure of this study. His followers especially Barry and Birch refined Hirschman’s model into exit-voice-silence. This model is implemented in this study as a theory approach.By interviewing some key people in the Chinese producers involving in CFL-i case and comparing the interview results with hypotheses, come conclusions are coming out:First, in the case study level, Chinese producers’ choice of options is in a dynamic process. With the change of situation, a certain producer can choose different option in different period of time. While this study verified the variables influencing the choice of Chinese producers mentioned by Tao Jingzhou in the hypotheses such as degree of depending on EU market, sufficient of funds, supports from local government, financial system, ownership of the company and the diversity of products, it found several other variables which also affect the decision making of Chinese producers such as nationalism, previous success experience.Second, when it comes to political level, for Chinese side, Chinese government especially local government should be more supportive when their enterprises are facing anti-dumping investigation from EU. In EU’s part, according to what has been discussed in the case study, currently it is not the time for EU to take China as a market economy treatment. However, its harsh criteria for applying for MET and individual treatment would get continuous severe critical from Chinese producers and government, which will negatively affect its trade relationship with China. For both sides, bilateral negotiations on anti-dumping duty or undertakings would be good for the long-run interests of both sides.
Bibliographical Information:

Advisor:

School:Linköpings universitet

School Location:Sweden

Source Type:Master's Thesis

Keywords:eu china anti dumping exit voice silence

ISBN:

Date of Publication:02/21/2006

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