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Trade Protectionism and China's Export Enterprise


Zeng and Liang said: "Antidumping cases are usually initiated by domestic producers who charge that foreign companies are selling at 'less than fair value' and, in most cases, at prices below those in their home markets" (2010). Besides the tariff, they required additional tax and frequently subjected to anti-dumping investigation which increases a huge cost of China's export product. The reason that they carry out anti-dumping legislation is that the price of China's product always lower than foreign countries' local piece, so that it will influence their local economy and commercial profit. Thus, the anti-dumping legislation might increase the cost of China's product and make China's company lose the lower-price advantages in the international market. In addition, Most China's small and medium-sized companies lack of other advantages except low price and lack of experience to negotiate or litigation with foreign companies, which lead them to be compelled to quit international market.
             In order to solve this problem, the export companies should cooperate with government or institution and ask for government's help to negotiate with companies of other country in order to build up a situation with mutual trust and mutual benefits. Jiang and Ellinger (2003) suggest that China's exporter also could coordinate with their relevant industry associations to establish early-warning anti-dumping systems before they become lawsuits. For example, Fuyao Glass Industry Group Co., Ltd was investigated by anti-dumping legislation of US but it cooperates with China's WTO Institute to do relevant research and protect their right, and finally win a lawsuit. This solution is effective because the power of a country or a group is much larger than a company. However, by cooperating with them might also bring some limitations or less freedom due to the intervention of government or other group.


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