Nielsen, Jørgen Ulff-Møller5; Rutkowski, Aleksander Jerzy4
1 Department of Management, Aarhus School of Business, Aarhus BSS, Aarhus University2 International Management and Control, Aarhus School of Business, Aarhus BSS, Aarhus University3 Department of Economics and Business Economics, Aarhus BSS, Aarhus University4 unknown5 Department of Economics and Business Economics, Aarhus BSS, Aarhus University
This paper investigates the EU anti-dumping policy towards Chinese companies. It is based on the EU anti-dumping cases since 1990 and especially since July 1998. (Since then Chinese firms have been able to apply for market economy status). Based on this analysis, the paper presents some practical advice to Chinese or foreign managers in companies in China with export to the EU. First, the CELEX database may give some important information on how to formulate a price policy for exports to the EU so anti-dumping measures can be avoided. Secondly, the owner structure of the company is important, if market economy status with its lower duties, is wanted. Wholly owned foreign companies or joint ventures with a majority of foreign capital seem to have the biggest probability of getting market economy status. Or generally, evidence of independence of the Chinese public authorities is important. Thirdly, owner structure counts also in relation to getting individual treatment; here especially freedom in exporting is decisive. Fourthly, if an anti-dumping investigation seems to be against the interests of the company, it should make an offer to the EU Commission to raise its export prices instead of paying duty. Fifthly, the paper also shows that the circumvention and absorption of duties do not pay.