In recent years, along with the surge in the export of auto parts in China, more and more auto parts have encountered anti-dumping investigations, including tires , fasteners, and fuel tanks. Tyres have always been the “regulars†of anti-dumping abroad. In 2015, the U.S. Steel Workers Federation also proposed a “double reverse†investigation on Chinese passenger and truck tires. However, after the tires were caught in anti-dumping, auto glass became another object of investigation. Recently, the Ministry of Development, Industry and Trade of Brazil paid a court of business to the Pakistani Embassy of the Ministry of Commerce to inform the official launch of an anti-dumping investigation against auto glass originating in China. The dumping investigation period was from July 2014 to June 2015.
As China's auto parts exports surge, more and more auto parts have encountered anti-dumping investigations
This is after September 2015, China's auto glass once again encountered anti-dumping investigations in Brazil. On June 29, 2015, Brazil launched an anti-dumping investigation against China’s auto glass, but since the application lawsuit filed by Brazil at that time could not stand for verification and Chinese manufacturers such as Fuyao Glass actively responded to the investigation, this investigation only lasted for two years. Months.
In fact, when the reporter sorted out the anti-dumping investigations that China’s auto glass suffered, in recent years, China’s auto glass companies have encountered anti-dumping investigations in Canada, the United States, India, Australia, the Philippines, and South Africa.
Trade frictions between countries continue to unfold. Why do auto parts and components in China undergo repeated anti-dumping investigations? How should auto parts that are trapped in anti-dumping cases break through?
In the final analysis, anti-dumping is trade protectionism.
In general, anti-dumping is a trade barrier set by the importing country of international trade out of a protection for local industries. The reason for initiating an investigation is closely related to the development of the local market. Taking automotive glass as an example, the reporter found that due to market conditions, China’s auto glass exports declined in 2015. Among them, from January to July, China’s export auto glass prices declined by 6% overall; among exporting countries, exports to Brazil The number of sharp declines. “In 2015, the performance of the Brazilian market was sluggish. New car sales fell by more than 20% compared to the same period of last year. Many affected automotive companies began to lay off workers significantly, which also had an adverse impact on the development of the local automobile industry.†Zhang Zhiyong, Automotive Industry Analyst The decline in the automotive market in Brazil has led to the local auto companies being forced to adjust their production plans, which has led to a substantial reduction in the demand for automotive glass.
Sun Fei, director of the Overseas Development Center of Chinese Enterprises, believes that in the context of the declining domestic auto market, Brazil has initiated anti-dumping investigations on products from China out of the protection of its own industries, which is a common practice in international trade. Of course, the main reason why products including auto parts often encounter anti-dumping investigations is the fact that China's products are quite competitive in terms of prices, putting pressure on related industries in importing countries. "So far, China's exports of auto parts are still dominated by low-tech products, and product prices are the main competitive advantage." Zhang Zhiyong believes that excessive low-cost competition caused by product homogenization has caused anti-dumping for auto parts. Investigations bring hidden dangers.
Of course, low-price competition has also caused tire companies in China in recent years to suffer from "double opposition" and "Labor Law." “New companies are eager to open their sales, and low-cost competition leaves the importing country with evidence that can be investigated.†Zhang Hongmin, chairman of Shandong Rubber Industry Association, told reporters.
Lu Bo, general manager of Shenyang Jinbei Jinheng Automobile Safety System Co., Ltd., said that in addition to the protection of domestic enterprises, anti-dumping measures also provide certain guarantees for a stable increase in employment rates and GDP; secondly, it also involves energy resources, economy, national strategy and security. Factors such as friction between the two countries are a guarantee of national security.
However, such safeguards are sometimes deliberately used by importing countries. “In practice, the governments of importing countries often use anti-dumping strategies to intentionally set up barriers to imported products and deliberately protect their relevant industries. This makes trade protectionism on the surface a legal investigation.†Zhang Zhiyong said that it is necessary to break this pseudo-legality. According to the survey, the company only responded positively.
Actively respond to the protection of their rights and interests
Positive prosecution and defense have the potential for victory, and failure to respond is 100% failure. This is the answer given by the majority of respondents to the issue of whether or not the enterprises that have been investigated for anti-dumping investigations responded.
In previous anti-dumping investigations, many small and medium-sized enterprises gave up because they could not afford the financial resources and energy needed to respond to the case. In this regard, Dr. Wang Li, the Institute for International Trade and Economic Cooperation of the Ministry of Commerce, stated that for enterprises with less than one million exports, it is much easier to give up and adjust the market than to respond.
Although losing and responding to lawsuits face high taxes and fees, giving up responding will have more adverse effects. "According to the provisions of the WTO, abandoning responding means at least 5 years or forever losing the right to export to the country, and it may also cause chain adverse reactions in other countries," said Fei. "If the losing company loses its market forever, it depends on the time and rate of tax collection," said Wang Li.
Encountered anti-dumping, renounced or refused to respond to the complaint, not only the company will be damaged, but also may affect the entire industry, will trigger anti-dumping investigations in more countries; the impact of positive response is positive, not only for the company To go for high tariffs and justice, it also provides valuable experience for other companies. “In the long run, success has a positive effect on companies, industries, and the automotive industry. Successful cases will become the reference for the next company. The more successful the case, the more able to prove that competition is under the market economy system, and that companies can obtain The market is treated fairly," said Zhang Zhiyong. Only by bravely resisting the protest and striving hard to obtain greater market space in the future.
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