The sudden escalation of the US-China trade war has negatively impacted global trade and the WTO, and its effects will last for a long time. This article centres on the US anti-dumping measures against Chinese exports within the trade war. The article attempts to explain the failure of the US trade policies in terms of anti-dumping measures; policies which were found to be inconsistent with the Anti-Dumping Agreement (ADA). Rather than complying with the Appellate Body Reports, the US insisted on using procedures inconsistent with the ADA, such as the zeroing methodology to overprotect the US industries. The US even blocked the appointment of Appellate Body Members and paralysed the WTO’s Dispute Settlement Mechanism. Apart from political and economic reasons, one of the underlying reasons for the US to trigger a trade war with China would be anti-dumping measures. Antidumping measures are designed to balance unfair pricing strategies; however, the US is misusing the measures in order to avoid a trade deficit with China.
On June 18, 2014, the WTO’s Dispute Settlement Body adopted the Panel report on China – Anti-Dumping and Countervailing Duties on Certain Automobiles from the United States case. There are questions that are still left open or ambiguous, and some notable findings have been introduced. For the procedure, the major issues are whether the non-confidential summaries of data were sufficient to reasonably understand the information, the admissibility of the delayed letter from parties and whether the notice and registration of Investigation Authorities could justify the facts available for determination of Residual rates. As regards the substantive issues, the discussion focuses on whether there is a self-selection process to distort the domestic industry definition and the price comparability between subject imports and the domestic like product. By analyzing the arguments, evidences and reasoning in these regards, this review points out questions that still need future clarification.
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.