State Council Executives in China sought to expand the domestic consumer demand for stable economic growth. Therefore policies on certain imports and exports of certain daily consumer goods in demand of the mainland were lowered. From June 2015, the import tariff rate on daily consumer products including clothes, skincare products, and paper diapers were lowered about 50% for each item category. For example, suits were lowered from 23% to 10%, skincare products from5% to 2%, and paper diapers from 7.5% to 2%.
Antidumping Regulations in the EU/US and China
Anti-dumping (AD) is defined as selling a product below its normal value. Th...
... middle of paper ...
... by EU companies in China. The Chinese government can question the promotion of FDI with NMES and strict AD regulations when other countries assume that Chinese companies do not adhere to market economy conditions.
Long and Short term Effects on AD Duties
AD duties exist to level the competition between national companies and foreign competition. In the long run however, AD duties may not have a lasting impact on eliminating unfair prices distortions. AD duties reduce imports on a target country short term, but can increase fierce competition with the possibility of eliminating unproductive firms in the Chinese market. The competition is then increased when companies further reduce production costs and increase exports in the long run. Therefore, AD duties could create unintended consequences in the market balance in China, decreasing their chances in gaining MES.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty.... [tags: US-China Commercial Relations]
2820 words (8.1 pages)
- Walmart is a retail giant and they have the numbers to prove it. In 2014, total revenues were $476 billion, profits exceeding $110 billion, they have 4,203 stores in the Unites States, and 6,107 stores internationally (Corporate Reports Inc, 2015). With the recent regulation reforms and crackdown on corruption they have decided to expand their operations in China. There are risks Walmart faces with their expansion into the Chinese market, and with the proposed changes previously mentioned there will be an impact to the business environment, but the expansion can result in benefits for both Walmart and China.... [tags: United States, Law, Transparency International]
1132 words (3.2 pages)
- December 11, 2001 was a long awaited day for both local businesses, as well as for foreign investors. It was the day that the Chinese State Council promulgated the Regulations for the Administration of Foreign Invested Telecommunications Enterprises (FITE) which were scheduled to come into effect on the 1st of January 2002. Since it’s accession to the WTO, foreign telecommunications have eyed what is arguably the largest telecommunication’s industry in the world, and growing at a rate of over 20 per cent per annum.... [tags: essays research papers fc]
804 words (2.3 pages)
- International Trade In today’s world there are many issues in need of reformation, one of which is international trade, otherwise known as globalization. Although there are a great deal of rules, regulations, and policies imposed on international trade, the manner in which those rules have been enforced is a major controversy that seems to be escalating day by day. At the center of the controversy is the World Trade Organization (WTO). The WTO was established in 1995 in order to transform the General Agreement on Tariffs and Trade (GATT) into an enforceable global commercial code.... [tags: essays papers]
816 words (2.3 pages)
- The Impact of China's Modern Foreign Policies on Economic Growth Recent Chinese economic policies have shot the country into the world economy at full speed. As testimony of this, China's gross domestic product has risen to seventh in the world, and its economy is growing at over nine percent per year (econ-gen 1). Starting in 1979, the Chinese have implemented numerous economic and political tactics to open the Chinese marketplace to the rest of the world. Just a few areas China's government is addressing are agricultural technology, the medical market, and infrastructures, like telecommunications, transportation and the construction industry.... [tags: Economics]
1224 words (3.5 pages)
- Individuals and firms must be given the right incentives in order for an investment to be attractive. The government has a significant role in creating these incentives, especially in developing countries. Firms’ willingness to invest is dependent upon the business environment – extent to which laws, regulations and infrastructure support business activities. Governments create certainty and transparency in international business, and also reduce risks through laws and regulations, enforceable property and land rights, proper infrastructure and functioning tax systems .... [tags: International trade, Economics, Free trade]
2016 words (5.8 pages)
- 1. Introduction Nowadays with the development of technology especially after the appearance of internet, communications between people become more convenient and frequent. When their relationships become increasingly close, globalization has turned into the trend of the age. Facing such a good opportunity of expanding market, acquiring more profit and resources, various international firms started to spring out. ‘International firms usually mean companies who do business between two or more countries’ (John D.... [tags: technology, communications]
2760 words (7.9 pages)
- Challenges faced by MNCs Protectionist interventions by host states provide challenges to MNCs wishing to expand into those countries. They constitute trade barriers limiting a firm’s ability to disperse its production activities in global locations where they can be performed most efficiently (Hill, 2011p224-5). Tariffs, for instance, raise the cost of exporting products to the country. This may put the MNC at a competitive disadvantage compared to domestic firms in the industry. The firm may find it more economical to establish production facilities locally in order to compete on an equal footing with indigenous firms.... [tags: production, countries, trade]
843 words (2.4 pages)
- Of late, the mundane world has been un-equivocally bifurcated into developed (here-in-after referred as DCs) and its less developed parts particularly when it comes to economics, trade and technological advancements. Inhabitants of both parts have their own view-stands about these affairs according to their living circumstances and cultural background. However, since the advent of the idea of “GLOBALISATION” debate has been triggered about its positive and negative implications and both sides have been echoing their concerns since then.... [tags: trade, economy, international]
1065 words (3 pages)
- ... All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of China's economy has been brought into focus; China's neighboring countries have begun to recognize the influence of the Renminbi. 2008 financial crisis caused severe trauma on the world economy, although the economy of China grew moderately, China 's financial system is very fragile, the financial laws and regulations are deficient, the structure of foreign change reserve is very risky, because China has huge foreign exchange reserve of US dollar, which makes China also suffer from the financial crisis.... [tags: finances, crisis, trade]
1021 words (2.9 pages)