While the pricing power for international trade has almost collapsed, China’s domestic trade market is also being eroded by foreign companies using “high-end productsâ€. On June 30, 2010, regarding the situation of the carbon steel fastener industry and the investigation of the industrial damage of the case, Song He, an inspector of the Bureau of Industrial Injury Investigation of the Ministry of Commerce, stated flatly that the dumping of fasteners imported from the European Union caused materiality in related industries in China. For damage, two-thirds of domestic similar companies are either closed down or in semi-discontinued state.
Industry experts stated that the final ruling in this case is of great significance to the normal production and operation of the fastener industry in China and the restoration of a fair trade order. Industry insiders said that in the near future when China’s foreign trade frequently encounters foreign anti-dumping sticks, the fasteners There is indeed a demonstration effect of being able to rise and fight first. However, compared with the anti-dumping tax rate, compared with the EU, the United States and other countries moving 70%, 80% of the tax rate, China's 6.1% -26.0% anti-dumping duties appear to be insufficient.
Only 1/3 of foreign "top-end" dumping Chinese fastener companies
Carbon steel fasteners have the reputation of “industrial riceâ€, commonly known as screw nuts, which are basic mechanical parts. They can be seen in space shuttles, automobiles, and mechanical equipment, as well as tables and chairs.
Prior to this, global fastener demand was mainly distributed in North America, Europe and Asia. As the level of manufacturing technology in Asia gradually increases, and labor costs are relatively low, the global division of labor in the fastener industry is changing. While North America and Europe are exporting high-end fasteners to Asia, they are shifting high-end fastener production to Asia.
As the largest fastener manufacturer in the world, China has nearly 10,000 domestic production and trading companies, contributing more than 1 million jobs. The rapid development of the domestic fastener industry has led foreign companies to step up efforts to seize the Chinese market by dumping and other unfair means.
According to authoritative data, the annual export volume of fasteners in China was 2.69 million tons in 2008, an increase of only 4.67% from 2.57 million tons in 2007. The export volume in 2008 was approximately 4.396 billion US dollars, an increase of 34.97% year-on-year.
According to industry experts, China's related industries have experienced a sharp decline in exports. Currently, one third of the companies in the industry are closed and one third of the companies are in semi-discontinued state.
Song Heping told the author that due to the impact of foreign products under investigation, on the one hand, domestic related industries have shown a serious shortage of start-ups and an increase in corporate inventories.
On the other hand, losses in the domestic industry have led to a deterioration in the return on investment and cash flow. The data shows that since the beginning of 2005, 15 key sampling industries have accumulated losses of up to 150 million yuan in 33 months.
In Song Songping’s view, the significant increase in the number of imported products under investigation has caused domestic industries to fail to achieve the necessary growth. At the same time, import prices have suppressed domestic similar products, leading to the obstruction of the transmission mechanism of rising raw material cost prices, which has made it difficult to develop the fastener industry in China.
Clash for the First Time: China's Scramble for the Right to Speak
The author understands that this anti-dumping sanction is not a unilateral measure, but it is a clash for the international market for fasteners in China.
"The case is very complicated. Its greatest feature can be summed up as 'a four-item case' that covers a wide range of time and spans a long time." Song Heping revealed that a product involved the 2007 EU anti-dumping case against my fasteners; 2008 My anti-dumping case against EU fasteners; and China and the EU both tried to refer each other to the WTO dispute settlement agency in four cases.
Turning over the history of disputes in fasteners in international trade, it was discovered that as early as November 9, 2007, our country suffered from anti-dumping rods from the EU against my fasteners. In 2009 alone, domestic fasteners suffered three trade remedies.
On January 31, 2009, the EU imposed a formal anti-dumping tax of up to 87% on anti-dumping measures against fasteners. On March 26 of the same year, the U.S. ruled that the fastener dumping margin in China was 55.16% to 206%. Three months later, the United States once again filed anti-dumping and anti-subsidy complaints against standard steel fasteners originating in the Mainland of China and Taiwan, and imposed anti-dumping duties of 66.87%-205.97%.
“It is normal for each country to restrict each other in global trade. The verdict of China’s first anti-dumping case on fastener products initiated by foreign countries shows the courage to compete for the right to speak.†said Yu Sen, an associate researcher at the International Trade Research Institute of the Ministry of Commerce.
The minimum difference between anti-dumping tax rates is 3 times. Experts think that strength is not enough but it is still good
The relevant enterprises have expressed disappointment in the anti-dumping duties imposed on imports of fasteners from the European Union, and the source of the company's dissatisfaction is due to the fact that the EU collected 77% of the anti-dumping measures taken against my products last year. 85% of formal anti-dumping duties. In the case of anti-dumping duties levied by the United States on China's fasteners, this figure has reached 206%. From three comparisons, the anti-dumping tariff imposed on China's imports of fasteners appears to be "not strong enough."
In this regard, Lun Sen believes that overall foreign trade protectionism is relatively strong, and trade remedy has a long history. Since its development, a mature system has been formed and reflected in the tax clauses. In addition, both sides impose anti-dumping duties on commodities. Due to differences in species, structure, etc., the minimum anti-dumping tax levied by the European Union on me is approaching the triple of the maximum tax imposed on China.
“Anti-dumping duty sanctions are a little small for domestic fastener companies, but they will eliminate a group of backward companies in the long-term, and at the same time, they can intensify the relevant industries to accelerate the pace of optimizing the portfolio and industrial upgrading.†In view of Lucent, despite The first round of anti-dumping of fasteners in China was accused of insufficient efforts, but the courage to compete for the right to speak still brought a glimmer of light to domestic companies.
“The industry is a strategic industry that is labor-intensive, capital-intensive, and high-tech, and the confrontation has brought new opportunities for the upgrading of the company's products and will help promote the strategic development of the domestic fastener industry to high-tech. The transformation of methods will enable companies to expand their product's market share and meet the market's needs on the basis of continuously improving the level of product technology and quality, thereby enhancing the international competitiveness of China's fastener industry.†Expert opinion was corroborated by Song Heping.
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