China faces more anti-dumping investigations
By Ding Qingfen (China Business Weekly)
Updated: 2004-09-13 14:53

China should pay greater attention to trade disputes with Asian and African countries and regions to ensure the sustainable growth in its exports, suggests a senior expert on World Trade Organization (WTO) studies.

Countries and regions in Asia and Africa, which China has traditionally overlooked, are beginning to create a stumbling block for Chinese exporters, Xue Rongjiu, vice-president of the China Society for WTO Studies, said last week.

His remarks followed Turkey's decision to investigate possible dumping by Chinese exporters of colour TVs.

Three Turkey-based companies -- Vestel, Beko and Profilo -- allege Chinese exporters dumped products into the country. The complaint -- involving seven categories of TVs between August 20 and September 25 -- is being investigated.

Chinese enterprises and authorities have long been concerned about anti-dumping actions launched by the United States and/or European Union (EU).

However, "anti-dumping actions taken by Asian and African countries and regions are increasing," said Lu Bo, associate researcher with the China WTO Research Institute.

Seventeen countries or regions last year filed 49 anti-dumping investigations against Chinese products, worth US$1.9 million, indicates the Ministry of Commerce (MOFCOM).

Of the 49 complaints, 24 were filed by seven Asian and African countries -- Turkey, India, Indonesia, South Korea, Thailand, Egypt and South Africa.

In the year's first quarter, six countries launched anti-dumping investigations into Chinese products. Of those, five were launched by Asian and African countries.

Turkey, and more than a dozen other countries, recently filed a complaint against China's TV exporters with the World Trade Organization (WTO). They asked the trade bloc to extend the restraint on China's export quotas to the end of 2007.

India has also launched anti-dumping investigations into Chinese TV exports.

India, from 1992 to March 2003, filed 153 anti-dumping complaints against 47 countries and regions. Of those, 66, or 43 per cent, involved Chinese exporters.

"More Asian and African countries are using anti-dumping actions as effective tools to protect their own enterprises," Lu said.

Countries and regions frequent use of anti-dumping measures is the result, at least in part, of China's increasingly powerful economy, he added.

China last year was ranked as the world's fourth-largest trade country -- behind the United States, Germany and Japan.

China is expected to surpass Japan this year.

China's rapidly increasing exports are probably posing a threat to other countries, especially the developing countries, Xue said.

On the other hand, as "China is trying to develop a trade strategy that balances exports and imports, its products are more likely to be seen as being of excellent quality for a reasonable price," Lu said.

"That makes trade protectionism from the other countries and regions unavoidable."

That, a MOFCOM official said, means China must be more vigilant.

"It is high time for China to pay more attention to its trade disputes with Asian and African countries and regions," said Cheng Yongru, an official with MOFCOM's China Bureau of Fair Trade for Imports and Exports.

China's enterprises, to counter the anti-dumping investigations launched by the United States and European Union, are expected to develop new markets in Asia and Africa.

As a result, "China will probably lose the world market if it suffers from large-scale anti-dumping investigations by Asian and African countries and regions," Cheng said.

Lu said China should pay closer attention to those countries, because they are parallel to China, in terms of economy, and, thus, are poised to regard China as a competitor.

China's manufacturers should try to adjust the prices of their products, and improve the quality -- such as design and colour -- in a bid to prevent anti-dumping measures by other countries and regions, Xue said.

Apart from that, being recognized as a "market economy" by other countries and regions must be China's top priority, Xue emphasized.

Obtaining market economy status has long been a headache for the Chinese Government and Chinese firms, especially when it comes to anti-dumping investigations, he said.

Seventeen countries have already granted China market economy status.

Those countries are New Zealand, Singapore, kyrgyzstan, Malaysia, Thailand, South Africa, the Philippines and the 10 ASEAN (Association of Southeast Asian Nations) countries.

As ASEAN only recently recognized China as a market economy, "China's enterprises, especially those in the colour TV and textile sectors, which have suffered greatly from anti-dumping investigations, will definitely benefit," Xue said.

Close