Market Economy Treatment for Chinese Producers under the Indian Antidumping Regime

Abstract

The article explores the conditions influencing the attribution of market economy treatment to Chinese producers and exporters in Indian antidumping investigations. The findings of the designated authority in India in various investigations on market-economy treatment have been analysed. Accurate documentation which indicates that there is no state interference in the management, costing and pricing decisions of the entity, being able to adduce evidence that raw materials procured are not from state-sources, and indicating that there is significant foreign interest are factors which increase the chances for being awarded market-economy treatment. Part I introduces the legislative framework for non-market economy countries India. Part II delineates the factors which lead the investigating authority to speculate on the presence of 'Significant Distortion' through government control. It also deals with data which must be presented pertaining to the procurement of raw materials and utilities and the subsidy programs in China. Part III identifies the conditions to be considered before tabling other countries as 'surrogate economies' by the investigating authority. Part IV captures that the Chinese economy is an economy in transition. Part V deals with the cases in an investigation where an entity has been granted market economy treatment.