China was involved in an increasing number of trade frictions in 2006. The Ministry of Commerce reported that a total of 25 countries and regions launched 86 separate anti-dumping, anti-subsidy investigations and inquiries into safeguard measures and special safeguard measures against China, approximately 37 percent more than in 2005 and involving US$2.05 billion. Of these, 63 were anti-dumping cases, 2 were anti-subsidy cases, 16 were safeguard measure cases and 5 were special safeguard investigations.

In 2006, the United States launched a relatively small number of anti-dumping investigations into Chinese products. However, it began its first anti-subsidy investigation, adopting even stricter rules. The EU has initiated numerous anti-dumping investigations into Chinese products in recent years and it filed 12 cases in 2006, more than in 2004. The number of trade remedy investigations initiated by India, Turkey, and other developing countries accounted for 71 percent of cases. After Japan implemented its Positive List System, it substantially raised the threshold for agricultural products exported to Japan, affecting more than US$7 billions worth of agricultural imports from China.

Chinese business and trade sectors, intermediaries and enterprises are cooperating to deal with the ever-increasing number of trade frictions. During the EU shoe anti-dumping case, which involved US$730 million and affected 70,000 jobs, 163 Chinese enterprises cooperated to answer the case. Their efforts enabled roughly 30 percent of the categories in dispute to be excluded from the list; the tariff was lowered from 19.4 to 16.5 percent and the penalty period was shrunk from five to two years, mitigating the adverse effects on export enterprises.

Of the anti-dumping cases launched against China in 2006, 48 were concluded in the same year. Sixteen were investigated and closed without action. Five received market economy treatment and are subject to lower taxes.

China effectively curbed the impact of special safeguard measures on its exports last year. Since 2002, China has been subjected to 23 special safeguard investigations of which 19 are now closed. Seven of these nineteen cases were successfully concluded in 2006. Only a special safeguard case relating to a Turkish company wasn't concluded in China's favor. In four other cases investigation continues.

It is worth noting that China has taken greater action to investigate dumping in its own import sector. In 2006, it launched 10 anti-dumping investigations into 5 imported products, taking 13 temporary and 22 permanent anti-dumping measures and closing 9 anti-dumping cases. Anti-dumping investigations into imports have increased as the coverage on trade remedy measures has expanded.

In 2006, 14 countries recognized China's market economy status, bringing the number of countries that recognize China's market economy status to 66.

By People's Daily Online