TV makers act to minimize losses
By Zhang Jin (China Daily)
Updated: 2004-05-24 08:39

Chinese television makers are speeding up efforts to cut losses in the wake of the setting of new US import tariffs but it is still unclear if the moves will work effectively.

Analysts have advised the industry to send their goods into other markets, export them from facilities outside of China, or export more high-end products.

The United States Commerce Department announced on Saturday that dumping duties would be levied on Chinese colour television sets beginning from early June, which marks the conclusion of a year-long process that began last May.

Although domestic TV producers could appeal to the US Court of International Trade, there is little hope of changing the situation, experts say.

Shocked by the ruling, local makers are taking measures to soften its impact. Hisense, a leading Chinese digital TV producer based in Qingdao in eastern Shandong Province, is going to export more high-end TV sets to the US.

High-end products are excluded from the ruling list.

Television set makers including TCL, Konka and Skyworth have set up production bases in Mexico, a member of the North American free trade zone, to avoid the US anti-dumping charges, local media said.

Analysts also advise China's television set makers to look for co-operative ventures with overseas partners. But they also said that these moves can only be temporary measures. The best way would be to upgrade the industrial structure and make it strong in technology.

Luo Qingqi, senior director of Pully Consulting, which monitors the household electrical appliance industry, said Chinese makers should adopt a long-term strategy instead of blindly rushing into temporary measures to offset losses.

The anti-dumping petition was filed last May by a Tennessee electric appliance company, Five Rivers Electronic Innovations, and two US trade unions representing television assembly workers.

In November, the US ruled against the Chinese TV makers in a preliminary decision, which dramatically dragged down Chinese TV exports to the United States.

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