Comments on Minsoo Lee, ADB “China,
the US and anti-dumping actions”,
The use of anti-dumping against China by some western countries, as analysed by the author in this post, clearly demonstrate that it is ineffective in protecting the domestic producers and is more likely than not, harmful to both their domestic consumers as well as the overall welfare of those countries.
The main reason why some of those countries still hold China as hostage by refusing to acknowledge the market economy status of China, simply is due to the wish to contain China’s economic rise (or more realistically the pace or speed of that rise) and the strong lobbies by some of their domestic producers to protect their increasingly lost competitiveness as evidenced by changing in comparative advantages internationally.
Strong or stronger leaderships in those countries are badly needed to accept that the use of anti-dumping measures in the currently unfair and unjust international trading system and rules is detrimental to their national interests.
But sadly, politics can often trump rationality in economics in many if not all countries. It is particularly true in the contest where domestic politics is mixed with international politics, especially when China is concerned party.
In this case it is not hard to understand why the pure rational economics is compromised in reality. Economic models aiming at capturing the reality need to reflect this to be more effective and truthful.
I commend the objective analysis of this post by Minsoo Lee and tell what the truth is.