Differences in the determinants and targeting of antidumping: China and India compared

Abstract

Despite both being developing countries, China and India have markedly contrasting patterns in their use and targeting of antidumping (AD) measures. We explore the factors driving AD use by these two countries, considering in turn macroeconomic, strategic and other determinants. We find more regular or systematic features of AD use by China, while India displays a less systematic pattern of AD use. Economic growth, AD club effect and FTA participation are shown to constrain AD use by China. Compared to India, AD use by China is also more sensitive across industries. Furthermore, China targets developed countries more than developing countries, while India is less discriminating with respect to the country type it targets.

‘Where Have all the Distortions Gone?’ Appellate Body Report, Ukraine–Ammonium Nitrate

“…Nevertheless, it has been shown that, for the predatory behaviour to occur, several market conditions have to be met, which appears highly unlikely (Krishna, 1999;Bown and McCulloch, 2015). Since the late 1980s and with the creation of the WTO in 1995, there has been a global increase in the use of anti-dumping, as recognized by many economists (Prusa, 2001;Zanardi, 2004;Bown, 2006;Meng, Milner, and Song, 2016). Even though anti-dumping measures have been an instrument primarily used by developed countries, over recent years developing nations have become the most frequent new users.…”

‘Where have all the distortions gone?’ Appellate Body Report, Ukraine – Ammonium Nitrate, WT/DS493/AB

“…Since the late 1980s and with the creation of the WTO in 1995, there has been a global increase in the use of anti-dumping, as recognized by many economists (Prusa, 2001;Zanardi, 2004;Bown, 2006, Meng et al, 2016. Even though anti-dumping measures have been an instrument primarily used by developed countries, over the last years, developing nations became the most frequent new users.…”