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Exact(10)
The commission wants to scrap the lesser-duty rule for countries dumping goods on world markets.
But without it, countries can accuse China of dumping goods, and then use other countries' prices — say, India's energy prices or Thailand's land costs — to prove their point.
Such a designation would make it much harder for Western companies to win trade disputes in which they accuse China of dumping goods below cost.
The label makes it fairly easy for overseas industries to accuse Chinese companies of dumping goods into their markets at prices below cost, and to seek steep tariffs on their shipments.
The trade case seeks tariffs "well in excess of 100 percent" on the wholesale price of Chinese solar panels on arrival at American docks, as punishment for dumping goods.
In America the relevant law, Section 421 of the Trade Act, does not require proof that China has broken international trade rules against subsidising or dumping goods (ie, selling below cost), only that the domestic industry was disrupted.
Similar(49)
Although not compulsory under World Trade Organisation guidelines, the EU has chosen to abide by the lesser-duty rule, which restricts punitive tariffs on dumped goods.
The commission says it has passed "a record level of trade defence measures", pointing to 37 cases in which extra tariffs have been charged on dumped goods.
Despite the doubling of trade with China since 2003, the European Union accuses Chinese companies of benefiting from unfair state aid, allowing them to dump goods, or sell them below cost, in Europe.
China subsidizes its manufacturing exports, allowing its companies to "dump" goods overseas, or sell them at below-market prices.
Its system of subsidies also encourages Chinese firms to maintain excess production capacity that in turn creates an incentive to dump goods. .
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