U.S. companies adversely affected by unfair imports may seek antidumping (AD) duties. China is classified as a non-market economy (NME) & a special methodology is used that is believed to produce AD duty rates that are higher than those applied to market economies. In light of increased concern about China's trade practices, a review was conducted by efforts of U.S. gov't. agencies responsible for ensuring free & fair trade with China. This report: (1) explains the NME methodology; (2) analyzes AD duties applied to China & compares them with duties applied to market economies; & (3) explains circumstances in which the U.S. would stop applying its NME methodology to China & evaluates the potential impact of such a step. Charts & tables.

The author examines the United States and European Union's use of anti-dumping laws to demonstrate that discriminatory treatment persists even a decade after the end of the Cold War. She argues that lingering Cold War beliefs about the trade threat posed by Communist countries continue to affect the method of implementing these trade remedy laws.