Abstract

Despite the dramatic increase in trade between the U.S. and China since the normalization of relations between the countries in 1979, China is still confronted with U.S. laws that hinder trade. The most serious threat to Sino-U.S. trade is the U.S. antidumping law, which authorizes the imposition of a duty on imported merchandise that the Department of Commerce determines is sold at less than fair value, if the U.S. International Trade Commission determines the U.S. industry in that field is materially injured. This law and cases interpreting it are examined. With its low wage rate and lack of cost accounting, China’s non-market economy is especially susceptible to charges of unfair trade practices; however, China’s economy is in transition with recent reforms. These economic reforms are detailed, and the author concludes that U.S. antidumping laws should be amended as China’s economy changes and to reflect the post Cold War era.

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