Two Chinese needle makers in Jiangsu Province have succeeded in not having additional tariffs imposed on their products by India, which earlier claimed the dumping of inexpensive Chinese needles had hurt its domestic market, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products said Monday.

India charged Chinese needle makers of dumping sewing machine needles in its market early last year, and threatened to slap tariffs of 600 percent on the Chinese-made products under special provisions China agreed to when it entered the World Trade Organization.

The measure allows WTO members to take action against Chinese exports if they find such exports have hurt their domestic industries.

"If the safeguard tariffs are approved, it will be a huge disaster for the Chinese needle industry," said Cai Yongqin, general manager of Nantong Huating Needle Making Co Ltd.

Nantong Huating Needle Making Co Ltd and Nantong White Crane Needles Co Ltd, which responded to the charge last year, account for 90 percent of Chinese sewing machine needle exports to India.

Chinese-made needles account for 30 percent to 40 percent of the world's low- and middle-end sewing machine needle market. Several million US dollars worth of needles were sold to India last year, Cai said.

But he refused to give a specific amount.

Cai said more than 20 firms in Nantong in Jiangsu Province make 20 million wraps of low-end needles every month. One wrap contains 10 needles.

"They were sold at 0.42 yuan (5 US cents) per wrap in India while high-end needles made by Indian firms usually were priced between US$7 and US$8 per wrap," Cai said.

(Shanghai Daily December 23, 2003)