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China has been a member of WTO for nine years. With the expanding of import and export, the disorder of exportation is aggravated. The increasing of trade frictions with the trade partners, such as antidumping, subsidies and countervailing, safeguards, technical barriers, reflects the disorder of our exportation. China is in the period of trade friction. According to the statistics from WTO, China has been the most frequent country receiving antidumping from other countries and also the main countervailing country of many countries and 337 investigation of USA. However, it cannot be charged to the prejudice from other countries, and on the contrary, the main reason is the disordered competition and poor pleading of our exporting companies.Being a new rule arrangement, business associations emerge as the times required and play an indispensable role in exportation governance.Based on transaction cost theory, public resource management theory, game theory, the article analyzes the mechanism of exportation governance of business association. Business associations have vantages in self-discipline and negotiation, information and specialty, and organization, so they can play an important role in investigating trade barriers, controlling the competition, establishing anti-dumping mechanism, protecting intellectual property, helping settling disputes, and expanding exportation. However, our business associations don’t play an important role in exportation and the disorder of exportation is going on. It is theoretical and practical to explain the function and defects of business associations’exportation governance with the exportation governance cases of Wenzhou Lighter Business Association and to put forward some countermeasures from different point of view. This article includes seven parts:
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