Abstract

Trade officials in the United States and Europe use what is called “nonmarket economy methodology” in antidumping cases against imports from China. That practice ignores the actual prices used by Chinese producers and results in unpredictable and unrealistically high antidumping duties.

The use of nonmarket economy methodology is quite rightly prohibited by global trade rules at the World Trade Organization (WTO). But, when China joined the WTO in 2001, it agreed to a 15-year transitional period during which other members would be allowed to use the methodology. The transitional period ends on December 11, 2016.