China top target for anti-dumping action: WTO

09 May, 2006

China is by far the top target for governments around the globe seeking to protect their domestic producers from low-cost imports, according to a report on Monday from the World Trade Organisation (WTO).
A total of 33 new anti-dumping investigations - out of 82 in all - were launched into the pricing of Chinese goods during the second half of 2005, the WTO said, bringing the final number for the year to 55 out of 178, or nearly 31 percent.
Of new measures - import restrictions or additional tariffs imposed after investigations - Chinese exports were hit by 22 out of 76 from July to December, bringing the total for the year to 40 out of 129, exactly 31 percent.
No other country in the 149-member WTO attracts anything near as much attention. India and Taiwan, in earlier years major targets, were subject to little more than a handful of actions each, roughly the same as the United States.
Dumping is defined by the WTO as the export of goods at a price below that at which they are sold in domestic or third-country markets, or at less than the cost of production.
But developing economies, like China, often accuse major powers like the United States and the European Union of launching unjustified investigations as a tactic to scare off domestic firms wanting to import competitive foreign products.
Final anti-dumping measures can be challenged in the WTO through its dispute settlement system. But even if trade judges rule them unjustified, the process can take up to two years during which allegedly dumped goods suffer from extra tariffs.

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