Why Chinese Exports Face So Many Trade Remedy Actions： An Empirical Study Based on Multi-country and Multi-industry Data

This paper offers a comprehensive analysis of the reasons for the large number of trade remedy actions taken against China. Using a multi-country and multi-industry dataset, the present paper shows that the macroeconomic situation of China＇s partners has a great influence on the probability of trade...

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Bibliographic Details
Published in:China & world economy 2016-11, Vol.24 (6), p.108-126
Main Authors: Tian, Xiangyu, Xie, Shenxiang, Wang, Qi, Wang, Xiaosong
Format: Article
Language:English
Subjects:
B41
D72
Economic models
Exports
F13
industrial competitiveness
macroeconomic status
preferential trade agreement
Trade agreements
trade friction
WTO regime
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Summary:This paper offers a comprehensive analysis of the reasons for the large number of trade remedy actions taken against China. Using a multi-country and multi-industry dataset, the present paper shows that the macroeconomic situation of China＇s partners has a great influence on the probability of trade frictions arising with China. Moreover, the more powerful the industry is, the more likely it is to take trade remedy actions against China. The empirical results reveal that China has been hurt under the operating mechanism of the WTO, and the number of free trade agreements is negatively related to the initiation and approval of trade remedy actions. Basically, the determinants for countervailing and double remedy measures are identical, while they are different from determinants of antidumping measures. Accordingly, strengthening communication with trade partners will alleviate friction between China and its trade partners. Meanwhile, making use of foreign lobbies power, actively integrating into the international trading system and participating in regional trade agreements are effective ways for China to deal with the ＂new normal＂ of trade frictions.
ISSN:1671-2234
1749-124X
DOI:10.1111/cwe.12183