Domestic parts industry should be alert to foreign anti-dumping again

According to the WTO's data, in 2005, China experienced 57 anti-dumping investigations by WTO member states, an increase of 8 cases over 2004, ranking first in all member countries of the WTO and only 14 in Indonesia. According to relevant sources, although the auto industry is still not experiencing excessive anti-dumping, in the long run, with the expansion of the export scale and the non-standard order of China's auto parts exports, it is highly probable that foreign countries will again appear in the future. Anti-dumping in the auto parts industry. In this regard, parts and components companies should be vigilant.

In fact, since China’s first anti-dumping in 1979, there have been anti-dumping cases involving China’s auto industry and there have been nearly 10 cases. The products involved include wheel washers, brake drums/brake discs, disc brake cylinders, automobile tire chains, windshields, and steel car fuel tanks.

Why the parts and components industry encountered anti-dumping

Experts pointed out that at present, China's auto parts products are mainly exported to low value-added, high energy consumption, raw material-intensive and labor-intensive products. Therefore, the Chinese auto parts that appear on the international market are mainly low-tech products such as automotive glass, tires, fuel tanks, filters, bearings, and brake discs.

In the competition for export of auto parts products in China, the competition for quantity and price is mostly, while the technological innovation and marketing ability of enterprises are lagging behind. Parts and components products lack brand advantages and can only win at low prices in market competition. According to relevant experts, the following situations may lead to anti-dumping: the sales price of products is lower than the normal price; the export volume has increased sharply for 3 to 5 years; the price has been declining and it has affected local industries. Although China’s auto parts exports have continued to increase substantially, there are a large number of domestic manufacturers’ excessive competition in exports, and low prices have become the target of public criticism. This not only damages the export interest of the national automobile industry, but also damages the overall competitiveness of the automobile industry. This low-cost competition has buried the hidden dangers of the parts and components industry from other countries' anti-dumping measures.

In addition to low production costs, strong competitive advantages, and continued export growth that put pressure on other countries, in 2001, as a compromise, China’s accession to the WTO agreed that within 15 years of its anti-dumping case on exports, it would be considered a “non-market economy”. "National treatment. Therefore, our country is more vulnerable to anti-dumping attacks and is more likely to become a victim of anti-dumping.

How to avoid anti-dumping

How can auto parts companies avoid anti-dumping? The reporter interviewed the person in charge of the Bureau of Industrial Injury Investigation of the Ministry of Commerce. The responsible person pointed out that if the parts and components companies want to avoid anti-dumping, the most fundamental way is to take quality to win and seek product differentiation. This requires parts and components companies to improve their technological competitiveness, build brand advantages, and shift simple price competition to technical quality and brand competition. In addition, if the parts and components companies are not well aware of the technical regulations and trade rules of the importing countries, they may also pose anti-dumping hidden dangers for the importing countries. Therefore, it is an important measure to prevent anti-dumping by carefully studying the technical regulations, market environment, and trade rules of all major automobile importing countries.

At the same time, the state has formulated relevant laws and regulations to regulate the export order of parts and components and will play a significant role in protecting the interests of China's parts and components companies. Recently, the Ministry of Commerce announced the “Provisions for Investigation and Punishment of Unfair Low-cost Export Behaviors (Interim)” (Revised Draft), which will help limit the number of export manufacturers and guide cooperative competition between manufacturers rather than vicious competition, thus improving our country International competitiveness of auto parts industry.