May 9^th, 2006: It is official. As per statistics released by WTO, more governments have imposed penalties against China for selling its products below the market price than any other WTO member nation.

Though, the antidumping duties applied cases reduced from 43 in 2004 to 40 in 2005, still China attracted maximum antidumping cases. China became WTO member in 2001 and ever since is topping the charts.

China is closely followed by its other South East Asian neighbors as Korea and Taiwan, which attracted 13 cases. European nations, being the largest importing countries in the world, were also the ones with maximum number of duty cases, applying 21 out of 40 cases.

Manufacturers across the world are decrying against China Government’ rigid stand on not allowing the full convertibility of Yuan and its policy of grossly subsidizing the out put through exports incentives, unfair labor practices and bank loan waivers etc. Various countries apply antidumping duties, where they suspect that another country is subsidizing exports to corner the market at the cost of importer country’s domestic industry.

Chemicals, Iron, Plastic sectors attracted most cases. Surprisingly Garment and Furniture segments were not the toppers in getting antidumping cases.

With the growing number of cases, China is expected to come under some stress to deal with the growing discontent against its subsidizing the exports and its exports may become costlier. But with the huge difference between the Chinese Costs compared with those prevailing in Europe or US, its exports may still retain the edge, at least for the time foreseen.