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 <subject>Economic analysis</subject>
 <subject>Evaluation methods</subject>
 <subject>Foreign governments</subject>
 <subject>Foreign trade policies</subject>
 <subject>Import regulation</subject>
 <subject>Import restriction</subject>
 <subject>International economic relations</subject>
 <subject>International trade</subject>
 <subject>International trade regulation</subject>
 <subject>International trade restriction</subject>
 <subject>National policies</subject>
 <subject>Policy evaluation</subject>
 <subject>Prices and pricing</subject>
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 <title>U.S.-China Trade: Eliminating Nonmarket Economy Methodology Would Lower Antidumping Duties for Some Chinese Companies</title>
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<abstract>U.S. companies adversely affected by unfair imports may seek a
number of relief measures, including antidumping (AD) duties. The
Department of Commerce (Commerce) classifies China as a nonmarket
economy (NME) and uses a special methodology that is commonly	 
believed to produce AD duty rates that are higher than those	 
applied to market economies. Commerce may stop applying its NME  
methodology if it finds that China warrants designation as a	 
market economy. In light of increased concern about China&apos;s trade
practices, the conference report on fiscal year 2004		 
appropriations requested that GAO review efforts by U.S.	 
government agencies responsible for ensuring free and fair trade 
with that country. In this report, the last in a series, GAO (1) 
explains the NME methodology, (2) analyzes AD duties applied to  
China and compares them with duties applied to market economies, 
and (3) explains circumstances in which the United States would  
stop applying its NME methodology to China and evaluates the	 
potential impact of such a step. Commerce agreed with our	 
findings, commenting that our report provides timely and helpful 
information on the NME methodology and its application to China.</abstract>
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 <topic>Economic analysis</topic>
 <topic>Evaluation methods</topic>
 <topic>Foreign governments</topic>
 <topic>Foreign trade policies</topic>
 <topic>Import regulation</topic>
 <topic>Import restriction</topic>
 <topic>International economic relations</topic>
 <topic>International trade</topic>
 <topic>International trade regulation</topic>
 <topic>International trade restriction</topic>
 <topic>National policies</topic>
 <topic>Policy evaluation</topic>
 <topic>Prices and pricing</topic>
 <topic>Restrictive trade practices</topic>
 <topic>Trade policies</topic>
 <topic>China</topic>
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