Chinese companies face a new round of EU sanctions

Recently, the EU plans to impose a 22.3% import tax on China's exports to Europe for a period of five years. The European Commission believes that Chinese tires are dumped at low prices in the EU market. Once most EU governments approve this taxation plan at the end of this month, European automakers will be affected. The EU uses about 50 million tires each year, worth 300 million euros.

At the same time, the EU Anti-Dumping Advisory Committee held a special meeting on anti-dumping cases against glass fiber in China. Despite strong opposition from EU fiberglass downstream user organizations, the meeting finally adopted the results of the European Commission’s implementation of provisional anti-dumping measures with 12 votes against, 7 votes in favor, and 8 abstentions (identified as approval). It is expected that the European Commission will formally make a preliminary ruling on this case around September 17. This is another blow to the EU's recent manufacturing of parts and components.

Prior to this, the EU Trade Commission formally announced in May the preliminary results of the anti-dumping investigation on China's export of aluminum alloy wheels, and announced that it imposed a uniform anti-dumping tariff of 20.6% on China's export alloy wheels. Xiong Chuanlin, deputy secretary-general of the China Association of Automobile Manufacturers, said that if the EU implements anti-dumping measures, the Chinese aluminum alloy wheel industry will be severely hit, and no anti-dumping duty can afford it. The worst result is that the Chinese aluminum alloy wheels All products will be withdrawn from Europe.

The anti-dumping investigation of the EU involved domestic auto parts manufacturers that exported to the European Union. In order to meet the demand of European OEMs, Chinese suppliers have invested heavily in R&D in the early stages. The products have been widely recognized and used by companies such as Mercedes, BMW, Volkswagen, Audi, etc. Once the “anti-dumping” is established, the initial investment will be wasted.

As early as 2007, China suffered from anti-dumping measures against fasteners from the European Union. In November 2008, the European Union, the main market for the export of fastener products, launched an anti-dumping investigation against China, resulting in an annual loss of 400 million euros in foreign exchange earnings and the loss of 800,000 jobs. On January 31, 2009, the EU imposed a formal anti-dumping tax of up to 87% on anti-dumping measures against fasteners. On March 26 of the same year, the US ruled that the fastener dumping margin in China was 55.16% to 206%.

Industry insiders believe that the EU's anti-dumping sanctions on China's auto parts industry are not unilateral measures, but it is a confrontation between China's auto parts industry and the European Union when it competes for the international market. It also tests whether Chinese auto parts companies are Dare to take the initiative and fight for the right to speak. These are of great significance to the normal production and operation of China's spare parts industry and the restoration of a fair trade order. It is conducive to creating a fair market competition mechanism for enterprises and enabling them to expand the market share of products to meet the market demand on the basis of continuously improving the level of product technology and quality, thereby improving the international competitiveness of China's spare parts industry.

Business professionals believe that overall foreign trade protectionism is strong, trade remedy has a long history, and so far a mature system has been developed and reflected in the tax clauses. The two parties imposed anti-dumping duty on the corresponding product varieties, Due to different structures, the EU’s minimum anti-dumping duties imposed on me are approaching the Chinese government's maximum taxation rate. Despite China's inadequate response to foreign anti-dumping investigations, the courage to compete for the right to speak out still gives domestic companies a glorious light.