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

46 Pages Posted: 28 Oct 2010

See all articles by Regina M. Abrami

Regina M. Abrami

Harvard Business School

Yu Zheng

Fudan University

Date Written: October 25, 2010

Abstract

Why have China’s petrochemical and steel industries behaved so differently in seeking trade protection through antidumping measures? We argue that the patterning of antidumping actions is best explained in terms of the political economy of economic restructuring in pillar industries and its effect on industry structures. 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 in the absence of exogenous economic shocks 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.

Suggested Citation

Abrami, Regina M. and Zheng, Yu, The New Face of Chinese Industrial Policy: Making Sense of Anti-Dumping Cases in the Petrochemical and Steel Industries (October 25, 2010). Harvard Business School Working Paper No. 11-042. Available at SSRN: https://ssrn.com/abstract=1698770 or http://dx.doi.org/10.2139/ssrn.1698770

Regina M. Abrami (Contact Author)

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Yu Zheng

Fudan University ( email )

220 Handan Road
Shanghai, 200433
China

Register to save articles to
your library

Register

Paper statistics

Downloads
167
Abstract Views
752
rank
177,620
PlumX Metrics