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Game Analysis on American Countervailing against China

Author: SunJiaYan
Tutor: WangJun
School: Suzhou University
Course: International Trade
Keywords: United States Countervailing devastating impacts Boundedly Rational Game policy
CLC: F224.32
Type: Master's thesis
Year: 2011
Downloads: 193
Quote: 1
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Abstract


According to the WTO rules, Anti-dumping, Countervailing and Safeguard Measures are three major trade remedies to promote fair trade and protect domestic industry security. As economy of China and the Sino-American trade develop vigorously, trade disputes between the two countries are also gradually rising. Until the end of 2010, the U.S. had initiated 30 investigations on the products imported from China. On the serious situation, it is imperative for China to respond to action and for us to carry out studies.By establishing the model of Panel Data, the paper focuses on the 21 countervailing cases between 2006-2009 and indicates that it’s negative correlation between American countervailing and the volume of China’s exports through the empirical analysis, which proves the impacts of countervailing measures on Chinese exports.On this basis, the paper builds a model of Boundedly Rational Game and analyzes the strategic choice and gets a conclusion. That is, the U.S. tends to take countervailing measures on Chinese exports, while Chinese enterprises involved often do not respond to actively and the Chinese Government can not take the initiative to use countermeasures on the United States. According to these results, the government should play its leading role and cooperate closely with industry association to help the company respond to countervailing.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods > Operations Research in the economy > Game Theory
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