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The New Face of Chinese Industrial Policy: Making Sense of Antidumping Cases in the Petrochemical and Steel Industries

Published online by Cambridge University Press:  24 March 2016

Yu Zheng  and
Regina Abrami
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Abstract

Why have China's petrochemical and steel industries behaved so differently in seeking trade protection through antidumping measures, especially given that both industries face the full force of the global economy? We argue that the patterning of antidumping actions is best explained in terms of industrial structures, inclusive of degrees of horizontal concentration and vertical integration. These structures determine a firm's motivation to seek protection as well as its capacity to overcome collective action problems within its industry. In the petrochemical industry, the shift toward greater horizontal consolidation and vertical integration reduces the collective action problems associated with antidumping petitions among upstream companies. It also weakens downstream companies lobbying in favor of the general protection of highly integrated conglomerates. In the steel industry, by contrast, national industrial policy fails to weaken local state interests sufficiently. Fragmented upstream and downstream channels instead persist, with strong odds against upstream suppliers waging a successful defense of material interests. Such distinctive industrial structures, we show, were a direct result of whether the central government could restructure these designated priority industries in its preferred direction. We find that exogenous price shocks proved particularly helpful in this regard.

Keywords

Chinaindustrial policypolitical economysteelpetrochemicalsantidumpingtrade policygovernment-business relationsemerging marketauthoritarianism
Type
Articles
Information
Journal of East Asian Studies , Volume 11 , Issue 3 , December 2011 , pp. 373 - 406
Copyright
Copyright © East Asia Institute 

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