DOC Seeks Comments on Market Economy Status of China and Targeted Dumping

November 30, 2007

In antidumping proceedings involving non-market economy ("NME'") countries, it is the Department of Commerce's ("DOC") usual practice to calculate the normal value for allegedly dumped merchandise being imported into the United States by valuing the NME producer's factors of production using, to the extent possible, prices from a market economy that is at a comparable level of economic development and that is also a significant producer of comparable merchandise.

In all past NME proceedings involving China, the DOC has calculated the normal value based on prices and costs from a surrogate country. The DOC recently affirmed China's NME status. In conducting this review of China's NME status, it concluded that, while China has enacted significant and sustained economic reforms, the Chinese government has preserved a significant role for the state in the economy. DOC further concluded that the limits the Chinese government has placed on the role of market forces are sufficient to preclude China's designation as a market economy under the U.S. antidumping law.

Given the evolution of China's economy, DOC's International Trade Administration ("ITA") requested public comments on the conditions under which the Department might grant market-economy treatment to individual Chinese respondents (as well as possibly other NME respondents), and, if so, how this might affect antidumping duty calculations for such enterprises, in a May 25, 2007 Federal Register notice.

On November 20, 2007, ITA announced an extension to December 10, 2007, on comments regarding:

1.       Whether it should consider granting market-economy treatment to individual entities for the calculation of normal value in AD proceedings involving China and 

2.       Standards and tests that may be used in determining whether "targeted dumping" is occurring in AD investigations.

Written comments (original and six copies) should be sent to David Spooner, Assistant Secretary for Import Administration, U.S.   Department of Commerce, Central Records Unit, Room 1870, 14th Street &   Constitution Ave., NW, Washington, DC 20230.