Price Strategy in the EU: Suggestions to Chinese Exporters in the Light of Anti-Dumping

SUMMARY

This paper investigates the EU anti-dumping policy towards Chinese companies. Based on this analysis, the paper presents practical advice to Chinese or foreign managers in companies in China with export to the EU. Firstly, the CELEX database may give some important information on how to formulate a price policy for exports to the EU in order to avoid anti-dumping measures. Secondly, the owner structure of the company is important, if market economy status with its lower duties, is wanted. Wholly owned foreign companies or joint ventures with a majority of foreign capital seem to have the biggest probability of achieving market economy status. Generally, evidence of independence of the Chinese public authorities is important. Thirdly, owner structure also counts in relation to getting individual treatment; here especially, freedom in exporting is decisive. Fourthly, if an anti-dumping investigation seems to be against the interests of the company, it should make an offer to the EU Commission to raise its export prices instead of paying duty.

KEYWORDS:

• EU anti-dumping policy
• owner structure
• market economy status
• individual treatment
• price strategies
• circumvention of duties