It will be the first time domestic furniture makers face such an anti-dumping penalty. Most of the furniture companies surveyed by Shanghai Daily yesterday said they had not been informed of the case against them and so far had not responded to the allegation made by the US Federal Trade Commission.

According to China National Furniture Association, Guangdong-based Nanhai Hongda Metal Products Co is one of the companies to face the anti-dumping penalty. Nanhai Hongda said the increased tariffs would force it to halt its exports to the US market, due to a low gross profit margin of only 30 percent. It exports furniture worth US$1 million to the United States annually.

The US government currently levies a roughly 5 percent import tax on Chinese furniture. If the penalty is imposed, the tax will be doubled or even tripled, and effective for one to five years, industry sources said.

In April, the Tennessee-based home furniture maker MECO Corp appealed to the US government, alleging that the Chinese folding metal tables and chairs were sold in the United States for 21 percent to 82 percent cheaper than the prices of US-made products.

The company requested that the US authorities investigate. The result of the investigation, covering 68 furniture makers and companies mainly in Fujian and Guangdong provinces, was announced on June 11.

The US investigators found the Chinese products were sold at the prices unreasonably cheaper than those of the American. The wholesale prices of a set of a Chinese foldaway dining table and four chairs range from US$16.5 to US$20.4 overseas.

"China's advanced technology, efficient management and expanded business scope allow its manufacturers to provide 'value-for-money' products," said Cao Yingchao, secretary-general of China National Furniture Association. Last year, China exported more than US$1.5 billion of furniture to the United States.

(Eastday.com 06/14/2001)