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Recently, the European Union launched an anti-dumping investigation on aluminum wheels in China, which is a manifestation of trade protectionism. In this regard, both the Chinese government and manufacturing companies have expressed strong dissatisfaction and are actively responding. China is a new member of the World Trade Organization, and it is a country of emerging markets. There is great potential for domestic demand. While exporting auto parts to the international market, China also accommodates foreign auto parts to enter the Chinese market. In international trade, especially when the world economy is in a recession, China needs the world and the world needs China more. Trade protectionism is a "double-edged sword". When the EU swings its sword to others, it also hurts itself.
The EU anti-dumping investigation on Chinese aluminum wheels will cause huge losses to China's wheel industry. There are currently more than 100 companies that manufacture aluminum wheels. The annual production volume is about 70 million, of which half are for the international market, and the external dependence is very large. Although exports to EU countries only account for about 12%, the anti-dumping investigation of the EU will play a very bad model role for other countries.
Once the European Union's anti-dumping investigation decides to impose punitive tariffs on Chinese aluminum wheels, it will have a longer-term negative impact on Chinese companies.
After 30 years of reform and opening up and economic restructuring in China, China’s auto parts industry is a completely marketized industry. The government has adopted a very open policy for the auto parts industry and has not set a market entry threshold. At present, in the auto parts industry in China, private enterprises and foreign-funded enterprises account for absolute dominant position. For example, of the more than 100 aluminum wheel companies in China, the vast majority are private, foreign, and joint-stock companies. There are only a handful of state-owned companies. In the market economy environment, the company operates completely independently, assumes its own profits and losses, and conducts full free competition in the market. Therefore, any accusation against any so-called "non-market economy" of Chinese auto parts is untenable, and it will cause great harm to the psychology of Chinese companies.
It is not easy for China's auto parts companies to enter products into the international market, and great efforts have been devoted to the technical and quality requirements of the products from the production inputs to the products. In terms of the Chinese aluminum wheel industry, most aluminum wheel manufacturers in China have invested huge sums of money and imported sophisticated manufacturing and testing equipment from abroad. Most of these equipments are manufactured in EU countries, including forged aluminum equipment, low-pressure casting machines, machining centers, heat treatment equipment, and necessary testing equipment. Their single-table prices are frequently priced at hundreds of thousands, millions, and even tens of millions of euros. Most of them are produced in countries such as Germany and Italy. Therefore, we should not only see that China has exported its products, but we should also see China's pulling effect on EU equipment manufacturing.
In addition, China's exports of inexpensive automotive parts and components also benefit vehicle manufacturers, reduce the cost of their products, increase market competitiveness, and allow consumers to benefit. If the European Union decides to impose sanctions on China’s aluminum wheels, it is not only Chinese companies that are hurt, but it will also damage the vital interests of auto manufacturers, equipment manufacturers and consumers in EU countries.
Economic globalization is a trend of development. The result is that resources in the global scope are more reasonably configured and utilized, products are more in line with environmental, energy, and security requirements and are more competitive in the market. China’s auto market is an open market. China’s auto industry is still in a weak position in integrating itself with the world’s automotive family. In a relatively long period of time, China will still purchase large quantities of technology, products, and key manufacturing of automobiles and components. Equipment and some raw materials. At the same time, China’s auto products will continue to improve its technology and quality levels, and gain a certain share of the international market with its own comparative advantages. This is also a matter of course. The competitiveness of some enterprises in the developed countries in the traditional market is declining. It is not surprising to even withdraw from the market because it is an unstoppable historical trend. For the benefit of individual companies, the EU’s approach to trade protectionism is not worth the candle. It is also futile.
It can thus be seen that the EU’s anti-dumping investigation of aluminum wheels in China is unwise. It is hoped that the EU will take a long-term perspective and proceed from the overall interest of the EU. Do not take any prejudice against Chinese companies and deal with this "aluminum wheel" incident in a practical and realistic manner.
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