A and European Union, China had violated the national treatment in the China’s Auto parts case as it followed protectionist policy for its domestic auto-industry. United States of America and European Union have filed a case in WTO under dispute settlement mechanism alleging the unfair treatment of China towards foreign auto parts. China’s complex tariff system is the main reason for favoring domestic industry and damaging the interests of foreign auto companies. However it may not be true completely as some analysts find political reasons behind this complaint. Majority car making companies in China are having collaboration or joint venture with foreign firms and hence will get the benefit of low cost domestic spare parts that result in lower manufacturing costs. Hence they will not prefer purchasing higher cost imported spare parts from foreign companies.
The term “like product” means the product that is identical to the dumped import, or in the absence of such a product, another product that has characteristics closely resembling the dumped import (Article 12 of the Anti dumping regulations of PRC, 2004) .
According to Article 3 of the Anti dumping regulations, 2004 of PRC, The term “dumping” means that an import is introduced, in the ordinary course of trade, into the market of the People’s Republic of China at an export price less than its normal value. Hence its meaning is almost similar to that of WTO definition.
The margin of dumping is the amount by which the export price of an import is less than its normal value (Article 6). The margin of dumping shall be established on the basis of a comparison of a weighted average normal value with a weighted average of prices of all comparable export transactions or by a comparison of the normal value and export price on a transaction-to-transaction basis.
According to the Anti dumping regulations of PRC, 2004, The term “injury” means material injury or threat of material injury caused by