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Yu Zheng,Regina Abrami 동아시아연구원 2011 Journal of East Asian Studies Vol.11 No.3
Why have China’s petrochemical and steel industries behaved so differently in seeking trade protection through antidumping measures, especially given that both industries face the full force of the global economy?We argue that the patterning of antidumping actions is best explained in terms of industrial structures, inclusive of degrees of horizontal concentration and vertical integration. These structures determine a firm’s motivation to seek protection as well as its capacity to overcome collective action problems within its industry. 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 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. Such distinctive industrial structures, we show, were a direct result of whether the central government could restructure these designated priority industries in its preferred direction. We find that exogenous price shocks proved particularly helpful in this regard.
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