Although the changes tend to favor China as a transitional economy in anti-dumping cases, it will also enhance the effectiveness of Australia's anti-dumping measures against foreign producers, said Zhang Hanlin, a trade professor at Beijing's University of International Business and Economics.

The amendments will allow Australian customs authorities to act as sole investigator into anti-dumping cases and will also shorten the investigation period from 220 to 155 days, the world's shortest time for such investigations.

The revision is expected to improve transparency, but exporters are concerned whether fair judgments could be made by one single government agency and in such a limited time, said an official at the China Chamber of Commerce for Importers and Exporters of Minerals, Metals and Chemicals.

Australia is one of the countries that have resorted most often to anti-dumping measures since the 1980s.

The country conducted 142 anti-dumping investigations between January 1, 1995 and June 30, 2002, ranking sixth in the world in terms of the volume, according to official statistics. Of these cases, 14 involve China.

Since Australia is China's ninth largest trading partner and the eighth largest purchaser from China, revision of the current anti-dumping law is expected to have a significant influence on China's exports and bilateral trade ties.

China's exports to Australia increased by 27.6 per cent year-on-year to US$4.17 billion in the first 11 months of last year, according to Chinese customs statistics.

Zhang insisted that Australia's recognition of China's transition to a market economy addresses its discriminatory anti-dumping policies against China and increases Chinese companies' possibilities of success in anti-dumping cases.

But the rapid growth in China's exports to Australia will heat up competition with locally made commodities and increase Australia's tendency to adopt anti-dumping measures, he said.

He singled out chemicals, iron and steel products, textiles and garments as being most likely to fall victim to the abuse of anti-dumping measures in Australia.

Zhang advised Chinese exporters against vicious price competition in order to counter the abuse of anti-dumping measures.

He said this is especially important when the Chinese Government is granting trading rights to more firms.

Apart from the government's effective management and guidance of industrial associations, domestic companies should put more emphasis on the development of new products and technological upgrades, he said.

(China Daily February 17, 2003)