Chinese exporters try to cope with increasing trade disputes

29/12/2011 12:00 - 357 Views

Chinese companies have experienced better outcomes in recent international anti-dumping cases, though disputes over China's trade practices continue to intensify, the 21st Century Business Herald reports.

On Dec. 19, Chinese tire exporters won a favorable decision from the US Federal Court of Appeals, which asked the US Department of Commerce not to view China as a non-market economy in its anti-subsidy investigation.

The ruling was an achievement for China, and comes on the heels of a July win in a four-year anti-dumping case by the European Union against screw and bolt fasteners.

Responding to the ruling, a fair trade official of China's Ministry of Commerce said it was unfair for the US to slap both anti-dumping and anti-subsidy tariffs on Chinese exports and blasted the US for protectionism in 30 other similar cases against Chinese exporters.

The official expressed concerns over India's possible anti-dumping case against solar panel makers. If the Indian case goes through, it will be another blow to China's photovoltaic industry, which is already under anti-dumping investigations by both the US and the EU, the newspaper said.

With anti-dumping cases from emerging economies on the rise, a Shanghai-based funds manager said Chinese companies have to learn how to respond to such investigations.

Although companies' proactive responses might not reverse the impact of defeats, the fund’s manager said it is still a good approach that could minimize losses.

Tong Yueping, a lawyer at Zhejiang T&C Law Firm, also suggested that companies cooperate while being investigated for unfair trade practices, in order to avoid punitive tariffs if allegations are upheld.

The newspaper mentioned a US anti-dumping and anti-subsidy case against Chinese flooring companies last year with punitive tariffs as high as 82.65%. The Department of Commerce's recent decision imposed an import tax of 10.88% on 73 companies.

Given the availability of cheap labor, the newspaper said China may face more trade disputes in 2012, as western countries continue to face unemployment pressures.

Source: wantchinatimes.com