Trade Effects of US Antidumping Actions against China*

• Author: Antonio Saravia,Donghyun Park,Minsoo Lee
• DOI: http://doi.org/10.1111/asej.12110
• Date: 01 March 2017
• Published date: 01 March 2017

Trade Effects of US Antidumping Actions against

China

*

Minsoo Lee, Donghyun Park and Antonio Saravia

Received 9 May 2014; accepted 23 November 2016

Using data on US imports, classif‌ied at the 10-digit Harmonized System commodity

level, we study the effects of all antidumping investigations initiated by the USA

against China between 1998 and 2006. Wef‌ind that antidumping actions cause a re-

duction in the volume and value of imports from China as well as an increase in the

price of those goods in the US market. Critically, however, we f‌ind that these effects

are short-lived and dissipate approximately 2 years after the antidumping decision.

Furthermore, antidumping actions against China prompt a substitution effect as they

increase US imports from other countries. In general, our results cast doubt on the

effectiveness of antidumping actions against China as mechanisms for protecting

US producers.

Keywords: Antidumping, US–China trade, protectionism.

JEL classif‌ication codes: F12, F13, F14.

doi: 10.1111/asej.12110

I Introduction

Antidumping investigations and measures against China have increased signif‌i-

cantly overthe past two decades. In 1995, antidumping investigations and measures

against China accounted for 13 and 22 percent of all antidumping investigations

and measures in the world. By 2011, those percentages had risen to 32 and 38,

respectively. Furthermore, during the same time period, 74 percent of the

antidumping investigations against China resulted in the application of some anti-

dumping measure. This rate of conversion, from investigation to measures, was

approximately 10 percentage points higher than the world average (WTO, 2015).

*Minsoo Lee (corresponding author): Economic Research and Regional Cooperation Department,

Asian Development Bank, 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines.

Email: mlee@adb.org. Park: Economic Research and Regional Cooperation Department, Asian

Development Bank, 6 ADB Avenue, Mandaluyong City,1550 Metro Manila, Philippines. Saravia: Eu-

gene W.Stetson School of Business and Economics, Mercer University,1501 Mercer University Drive,

Macon, GA 31207, USA.

© 2017 East Asian Economic Association and John Wiley & Sons Australia, Ltd

Asian Economic Journal 2017, Vol.31 No. 1, 3–16 3

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