A Study on the causes of China's increasing Anti-dumping measures against Korea
As one of member countries of World Trade Organization(WTO), China should revise or remove some of the existing entry barriers which have been protecting its domestic market. But Chinese industries will be faced with lots of difficulties by foreign competitive goods. So for the time being, Chinese government will take policies for protecting its industries such as anti-dumping and safeguard. But as safeguard causes other country's retaliation, anti-dumping would be most favorable take-action, China will more often use anti-dumping against Korea which has many competitive manufacturing goods to China. It was already happened. During Dec. 1997-Jul. 2004 China had taken 34 anti-dumping measures increasingly, of which 24 to the Korean industry goods. Three causes could be considered. First, anti-dumping measure is the most preferred one which has no side-effects such as the countermeasures from other countries. Second, China is suffering increasing trade deficit with Korea. Lastly, China and Korea are competing with each other in the world market. So it is necessary that special dispute settlement organization between the two countries be established to settle ever-growing anti-dumping disputes quickly and efficiently. Or anti-dumping agreement between the two countries could be needed to prevent the two countries from entering wasting disputes.