Why Chinese Exports Face So Many Trade Remedy Actions: An Empirical Study Based on Multi‐country and Multi‐industry Data |
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| Authors: | Xiangyu Tian Shenxiang Xie Qi Wang Xiaosong Wang |
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| Affiliation: | 1. Professor, School of Accounting, Shanxi University of Finance and Economics, China;2. Professor, School of International Economics and Trade, Shandong University of Finance and Economics, China;3. Staff Member, Bank of China, China;4. Associate Professor, School of Economics, Renmin University of China, China |
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| Abstract: | 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. |
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| Keywords: | industrial competitiveness macroeconomic status preferential trade agreement trade friction WTO regime B41 D72 F13 |
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