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Article
Why Will China Establish a Government-Sponsored Response Mechanism in Countervailing Games?
Journal of World Investment & Trade (2009)
  • Julien Chaisse
  • Luan Xinjie
Abstract

In recent years China has faced numerous countervailing duty investigations among others by the United States and Canada . Reactions to countervailing measures are usually much more policy-oriented than market-oriented. Whereas the dominant strategies adopted by the individual exporting enterprises are usually not the payoff dominant ones, China is tending towards establishing a government-sponsored countervailing response mechanism (Gscrm). With the Gscrm, the bounded rationality of the export enterprises in the countervailing counter-action can be eliminated and therefore payoff dominant equilibrium in a countervailing-responding cooperation game can be achieved.

Keywords
  • WTO,
  • trade law,
  • China,
  • United States,
  • trade frictions,
  • countervailing
Disciplines
Publication Date
Spring April 1, 2009
Citation Information
Julien Chaisse and Luan Xinjie. "Why Will China Establish a Government-Sponsored Response Mechanism in Countervailing Games?" Journal of World Investment & Trade Vol. 10 Iss. 2 (2009)
Available at: http://works.bepress.com/julien_chaisse/42/