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4.1.8 Anti-dumping laws (反倾销法): Chinese companies: From hesitant to respond –willing to respond Some Chinese companies have begun to pay more attention to self-protection through legal means. The lighter case (Wenzhou), 2002 -- The first case after China’s entry into WTO Unit Six The Political Environment 洛 阳 理 工 学 院 4.2 Home Government Trade intervention: You can’t do that there! It is rare for a country to attempt to stop its local companies from exporting. Even when they permit a steady outflow, governments maintain oversight and taxing rights. Two types: formal and informal restrictions Unit Six The Political Environment 洛 阳 理 工 学 院 4.2 Home Government Trade intervention: 4.2.1 Formal restrictions – intervention by the government A. Embargo (禁运、禁止贸易令) It is the prohibition by government on certain or all trade with a certain country. The U.S. embargo against Vietnam (ignored after years) The U.S. embargo against Cuba (stringently enforced) Unit Six The Political Environment 洛 阳 理 工 学 院 4.2 Home Government Trade intervention: 4.2.1 Formal restrictions B. National security issues(国家安全问题) Some goods are considered too strategic militarily and economically to be freely marketed to other nations. (nuclear materials, strategic minerals, chemicals, computer chips…) -- U.S. restrictions on high-tech products Unit Six The Political Environment 洛 阳 理 工 学 院 4.2 Home Government Trade intervention: 4.2.1 Formal restrictions C. Export tariffs (出口关税) Government tax exports primarily as a source of revenue and use it as a means of promoting or punishing particular industries. How about export tariffs? -- Most see it as harmful to domestic economy --“两高一资” Unit Six The Political Environment 洛 阳 理 工 学 院 4.2 Home Government Trade intervention: 4.2
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