Working Papers

Anti-Dumping Actions as Protection Racket

American manufacturers extort protection money from Chinese firms:

The only Americans getting more work as a result of the tariffs are Washington lawyers, who have been hired by both U.S. and Chinese companies. Their work includes haggling each year over private “settlement” payments that Chinese manufacturers denounce as a “protection racket.”

Fearful of having their tariff rates jacked up, many Chinese furniture makers pay cash to their American competitors, who have the right to ask the Commerce Department to review the duties of individual companies. Those who cough up get dropped from the review list.

posted on 25 May 2011 by skirchner in Economics, Free Trade & Protectionism

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