Is China a market economy? An assessment based on the Brazilian antidumping experience

Marçal, Emerson Fernandes
Goldbaum, Sergio
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This paper intends to contribute to the literature on the effects of the imposition of antidumping (AD) duties on the behavior of imports. More specifically, the question that this paper is willing to answer is if Chinese imports react somehow differently to the imposition of AD duties when compared to the behavior of other countries, normally regarded as “market economies”. To do so, we draw import and AD data for the period of 2007 to 2020 and test our hypothesis with both an Ordinary Least Squares and a difference-in-differences specifications. We conclude that there is evidence that Chinese importers react differently to the imposition of AD duty in Brazil. With this conclusion, we aim to contribute to the debate concerning the concession of a market-economy status for China that began to heat up in 2016, with the controversial expiration of one part of China’s Protocol of Accession to the World Trade Organization, through a Brazilian perspective.

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