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China to Fight Anti-Dumping Measures More Strongly

Laws & Regulations

BEIJING, China – The imposition and/or renewal of anti-dumping duties on the import of China made bicycles and other products will be more difficult as of December 11, 2016. In 2001 China joined the World Trade Organization (WTO) and under its membership terms, it would automatically be treated as a ‘market economy’ after 15 years.

China to Fight Anti-Dumping Measures More Strongly
China’s Market Economy status will mean that dumping claims should be based on comparison with domestic prices in the exporting country. – Photo Bike Europe

Ever since it joined the WTO in 2001, China has frequently attracted complaints that its exports are being ‘dumped’, or sold at unfairly low prices on foreign markets. Under world trade rules, importing countries can slap punitive tariffs on goods that are suspected of being dumped. The EU started levying dumping duties on bike imports from China in 1993. In May 2013 the European Commission decided to continue the existing dumping measures for another five years.

Comparison with domestic prices

Last week a Beijing envoy said at a WTO meeting that, “Complaints about its cheap exports will need to meet a higher standard from December 2016.” Dumping claims should be based on a comparison with domestic prices in the exporting country, but according to China complaining countries often used their own calculations to justify their accusations. “That should stop as of December next year,” the Beijing envoy said in the Reuters report.

In September alone, the WTO said it had been notified of EU anti-dumping actions on 22 categories of Chinese exports, from solar power components to various types of steel products and metals, as well as food ingredients such as aspartame, citric acid and monosodium glutamate.

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