India Accuses China of Dumping

The Indian government has launched a formal investigation into the price of China’s textile exports, accusing five Chinese firms of "dumping" textiles into India below "fair market value." Until the investigation ends, India has introduced provisional tariffs on silk imports ranging from 57% to 116%.

This is yet another of the countless dumping allegations made against China each year. According to the WTO, most of these accusations come from other developing countries with large textile manufacturing sectors who wish to protect domestic producers from cheaper goods. As Chinese textile exporting increases, more of these antidumping allegations can be expected.

If the Indian government finds that China’s textiles are indeed being sold below market value, it should thank these firms for making Indian consumers better off, not punish them by imposing unilateral import duties. Punitive protectionist measures would only hamper free trade between two countries that have exchanged $18 billion worth of goods and services in the past year.