An official from the Bureau of Fair Trade for Import and Export
said they are facing an uphill battle in reviewing anti-dumping
measures, as many have already taken effect. Since April this year,
the bureau has launched 10 anti-dumping reviews, of which four have
been completed. “We expect more in the future and it will be a
challenge for us,” he said.
The Bureau of Fair Trade for Import and Export and Bureau of
Industry Injury Investigation of the Ministry of Commerce are the
two departments in China responsible for anti-dumping cases.
The trade remedy bodies have never before faced so many
reviews.
Many of the anti-dumping measures were implemented four or five
years ago, close to the time for review. Also, with pressure from
increased imports looming, more domestic companies will turn to
trade remedies -- mostly anti-dumping -- for help.
China saw its first half-year trade deficit of US$6.8 billion
this year, as imports surged 42.6 percent compared to 35.7 percent
for exports. The sharp rise in imports, which is usually combined
with unfair trade behaviors, will force local companies to use more
legal remedies, said the official.
This trend will intensify as local industries feel the impact of
China’s entry into WTO. According to its WTO commitments, in the
third year of its WTO membership China must grant foreign trading
rights to companies where foreign investors hold a majority share.
The average tariff rate on all goods will be slashed from 35.6
percent to 10.4 percent this year.
The official said more foreign companies are expected to apply
for administrative and judicial review on increasing trade
remedies, which may push their governments to bargain or even
return to the WTO for remedies.
“We have prepared for it, although we will try our best to make
the decision fair,” he said.
He said the investigative authorities will make more adequate
disclosures about their decision-making rationale and procedures,
in accordance with related rules and WTO principles.
To date, China has filed 96 anti-dumping investigations and 64
have been concluded.
Anti-dumping measures have been implemented on products with a
total value of US$6.3 billion, mostly in the chemical and steel
industries.
Analysts said a more aggressive attitude to applying trade
remedies is what China, the biggest victim of anti-dumping
measures, needs.
But the government should first show strength in dealing with
the accumulation of anti-dumping cases, says Liang Yanfen, director
of the Center for WTO Studies of the Chinese Academy of
International Trade and Economic Cooperation.
She said China’s increasing propensity to file trade remedies
has attracted foreign attention, which means that the
decision-making process has to be perfect.
For example, the US Department of Commerce recently established
a Trade Remedy Compliance Staff (TRCS) to monitor foreign trade
trends and trade remedy policies. It is focusing on China and South
Korea as its starting point.
According to the WTO, there have been a total of 2,416
anti-dumping cases registered since its establishment in 1995, with
356 of them -- one-seventh -- concerning China.
In the US government, more than 800 people are working on
anti-dumping, but in China the number is 100. “That means several
people work on one case in the US while one person works on several
cases in China,” said Liang.
Fan Min, of Jilin Paper Industry, said that domestic companies
should file charges efficiently to save their profits. Her company
recently won a review of anti-dumping measures against imported
newsprint from Canada, South Korea and the United States,
“Selling under abnormally low prices is a quick way for some
foreign companies to occupy the Chinese market,” she said. These
foreign companies often have sufficient financial clout to afford
the cost and squeeze Chinese companies out.
(China Daily July 22, 2004)