Anti-dumping reasons and countermeasures for China's ceramic exports

Abstract China is a big country in the production and export of ceramics. It has a long history. However, from the current point of view, the anti-dumping form of China's ceramic industry exports is very severe, testing the survival and development of China's ceramic enterprises. In recent years, China’s ceramic export volume has increased year by year, and the annual export growth rate
China is a big country in the production and export of ceramics and has a long history. However, from the current point of view, the anti-dumping form of China's ceramic industry exports is very severe, testing the survival and development of China's ceramic enterprises.

In recent years, China's ceramic export volume has increased year by year, and the annual export growth rate has remained at around 30%, but the prospect of ceramic exports is not optimistic. Since 2001, China's ceramics exports have suffered from anti-dumping non-tariff trade barriers from the Philippines, Egypt, India and South Korea in 2008, which has caused China's ceramic industry to be hit hard. To improve the scientific and technological content of its own ceramics, actively respond to anti-dumping cases, and scientifically and rationally avoid various non-tariff trade barriers, and become an urgent problem for the export of China's ceramic industry.
Anti-dumping provisions in international trade

The Anti-Dumping Law of the General Agreement on Tariffs and Trade stipulates that anti-dumping refers to the complaint of the competent domestic authorities of the importing country in accordance with the domestic industry that has been damaged, in accordance with certain legal procedures, in the importing country at a price lower than the normal value. Processes and measures for filing, investigating, and disposing of foreign products that are sold and that cause statutory damage to industries that produce similar products in the importing country. Anti-dumping is a measure recognized by the former General Agreement on Tariffs and Trade and the current World Trade Organization to counter unfair international trade.

According to the anti-dumping provisions, the conditions for foreign countries to file anti-dumping suits against Chinese ceramic enterprises must be that China's ceramic export prices are lower than normal values ​​and cause damage to its ceramic industry. In fact, the real damage to many anti-dumping cases is China's ceramic industry. China's cheap labor and raw material costs have contributed to the price of low-cost ceramic products. The price of its exports to the international market is correspondingly lower than that of other countries. In the anti-dumping case, China's ceramic industry will face high punitive tariffs once it loses its lawsuit. This has caused a heavy burden on China's ceramic industry.

China's ceramics encounter anti-dumping status

According to incomplete statistics, since 2001, Chinese ceramic tiles have encountered anti-dumping measures in India, Mexico, the Philippines, Egypt, Ecuador and other countries. The anti-dumping tax rate of some countries is as high as 200%. In July 2001, India first investigated the anti-dumping case of polished tiles in China. There was only one domestic ceramics company responding, but the only one company did not have the qualification to respond to the law in India. As a result, China’s ceramic products were in India. After being followed by India, Mexico and the Philippines discovered an opportunity to implement anti-dumping measures against Chinese ceramics. In 2003, Egypt took anti-dumping measures against porcelain tableware imported from China and began to collect 305%. Tariffs, unfortunately, no one company responded to complaints in 47 days; in September 2005, China’s exports of ceramic tiles to the Philippines were levied at a price 2-3 times higher than the CIF price. This measure gave China’s Philippine tile export enterprises In November 2005, South Korea made a preliminary ruling in the anti-dumping case initiated by China's domestic ceramic tiles, arguing that the tiles produced in China constitute dumping of Korean exports, and the government is recommended to impose a temporary anti-dumping duty of 7.25% to 37.4%. In March 2006, Yiwu Yiyi Company of Zhejiang Province reported on the government website of the Ministry of Commerce that its low-cost ceramic tiles, which were normally exported to Ethiopia, were required to impose additional tariffs.

Foreign anti-dumping investigations on China's ceramic products exports have never been interrupted, and a large number of anti-dumping measures have seriously affected the export of China's ceramic products. Since South Korea’s anti-dumping investigation on China’s export of ceramic tiles in 2005, the export of ceramic tiles in only one province of Guangdong has shown a significant downward trend. From January to November 2005, Guangdong Province exported 8.89 million square meters of ceramic tiles to South Korea, worth US$26.97 million. , respectively, down 34% and 26% over the same period in 2004. Among them, glazed tiles are mainly used, with a total export of 5.8 million square meters, a drop of 36%, accounting for 70% of Guangdong's exports of ceramic tiles to South Korea. The anti-dumping of South Korea to China is mainly based on Guangdong Foshan ceramics enterprises, while Foshan ceramics exports 80% of Guangdong's total exports to South Korea, valued at 18.29 million US dollars. The amount involved in the case amounted to US$58.66 million, which is the largest anti-dumping case initiated by South Korea against China in recent years.

Reasons for the frequent occurrence of anti-dumping cases against ceramics in China

(1) Status of China's ceramic exports

As a major producer and exporter of ceramics, China has an annual output of more than 15 billion ceramics per day, accounting for 60% of the world's total output; more than 3 billion square meters of architectural ceramics, accounting for 50% of the world's total output; more than 75 million sanitary ceramics, It accounts for more than 30% of the world's total production. The annual export volume of China's ceramics is about 4 billion US dollars, an annual increase of more than 20%. Among them, the export volume of daily-use ceramics accounts for about 65% of the world's total exports, ranking first in the world; the export volume of architectural ceramics ranks among the top three in the world. According to customs statistics, in 2006, China's ceramic exports amounted to 6.292 billion US dollars, an increase of 24.88% year-on-year. Among them, daily-use ceramics exports reached 1.915 billion US dollars, maintaining a leading position among various varieties, an increase of 15.4%, maintaining a normal increase; The export of building ceramics was 1.764 billion US dollars, up 41.05%, ranking first among all varieties; the export of art ceramics was 800 million US dollars, ranking third in all varieties, up 10.06% year on year; the export of sanitary ceramics was 635 million US dollars, which also reached the same period of last year. The high level of 33.91%; the export of other varieties of ceramics was 1.177 billion US dollars, an increase of 27.04%.
Among all the ceramic products, the export volume of architectural ceramics ranks first. In 2006, the export volume of architectural ceramics was 722 million square meters, an increase of 30.97% over the same period of last year. It is the fastest growing of all ceramics, but from the export unit price, Building ceramics increased by 7.69% year-on-year, which is less than the average level of all ceramics. It can be seen that the increase in the export value of building ceramics is mainly driven by the increase in the export volume. In the case of anti-dumping cases in ceramic exports, architectural ceramics encountered the most anti-dumping cases, which is closely related to the export form of building ceramics.

(II) Reasons for China's ceramic exports to encounter anti-dumping

Since 2001, China's ceramic exports have frequently encountered anti-dumping. The most fundamental reason is that export prices are extremely low.

In 2001, the Philippines imposed protective tariff cases on imported building ceramics:

In 2001, the import of architectural ceramics in the Philippines was 1.8 million square meters more than in 2000. The imported products were mainly from Indonesia (3.39 million square meters, accounting for 38%), China (2.898 million square meters, accounting for 32%), and Spain (9%). Hong Kong (7%). In the Southeast Asian market, the Philippines is the region most affected by Chinese products. “Low-priced Chinese goods directly impact low-priced Malaysian, Thai, Indonesian and Vietnamese goods, and even affect local products”. At the end of 2001, the Philippine Tariff Commission determined that imported building ceramics would cause substantial damage to the domestic building ceramics industry. It is recommended to implement import quotas and to impose a safety tariff of 2.3 pesos/kg on the parts outside the quota. The following table is taken from the survey report. Local products are higher than imported products from Indonesia, Taiwan and China. The price of Chinese products is 286% lower than that of Italian products, 82% lower than Spanish products, 25% lower than Indonesian products and 38% lower than local products.

Although the anti-dumping case in 2001 was not only for a ceramic export in China, we can see from the above table that among all the ceramic importing countries in the Philippines, the price of Chinese ceramics is the cheapest, and in the following years, The ceramic products exported by Indonesia, Spain, Italy and other countries have greatly improved in quality and color, variety and style. At the same time, due to the orderly production and competition of domestic ceramic products, the export price has become normal. Turn. However, China has not learned lessons from this anti-dumping case, and still conducts price wars in China, which has enabled ceramic companies to gain an advantage in price on ceramics exports, not only to lower profit margins, but also to face the danger of anti-dumping. The evaluation of Chinese ceramics in the international market is low price, poor quality, and inferior goods.

China's export tile price per square foot is $0.81/sf lower than Italy's, which is equivalent to more than 2 square feet of China's exports. The fierce price war in the country has pushed the price of ceramics exports to a very low level, which has caused a considerable impact on Chinese ceramics in general. The growth of China's ceramic export volume is basically maintained by low prices, which is at the expense of limited energy, and is not conducive to the development of China's ceramic industry in the long run. At the same time, the low export price makes China's ceramics face the danger of anti-dumping for a long time. Once it is determined to be anti-dumping behavior, China's ceramics will be subject to high tariffs, which will cause the profit margin of ceramic enterprises to fall to a low point.

In addition, the reasons for the anti-dumping of China's ceramic exports are as follows:

1. Ceramic export products have low technological content, brand awareness is not strong, and export prices are seriously low.

China's ceramic production enterprises have outdated production lines, backward production technology, small scale of R&D centers, and weak R&D capabilities. Compared with ceramic products in Italy and other countries, China's ceramic products have low technological content and cannot enter the middle and high-end market, making ceramic products The price level in the international market is low. In recent years, the increase in the amount of ceramic exports has mainly been driven by the number of exports, not the export price, which has caused a lot of waste of domestic resources. At present, most companies in China have weak brand awareness. Many companies are OEM, and some have given up their brand routes.

2. The ceramic export market is relatively concentrated, resulting in a vicious low-price competition between the same industry in China.

In the first half of 2005, China’s exports to the EU, the United States, Hong Kong and Japan accounted for more than half of China’s total ceramic exports. Among them, the EU accounted for nearly one-fifth, and exports to the United States also increased by 14.9% year-on-year due to the cancellation of quotas. The excessive concentration and narrowness of the market has forced ceramic exporters to compete to lower prices and fight for limited quotas. The result: on the one hand, the high profits that were supposed to be declining suddenly shrank, and foreign importers smashed a “fisher’s benefit”; on the other hand, they earned a bad reputation for dumping suspected exports of their own ceramic products.

3. Low response rate to foreign anti-dumping cases

China's ceramic enterprises have been slow to respond to foreign anti-dumping cases, with poor enthusiasm, low response rate and poor solution. The reason for this phenomenon is objectively that the state has not provided relevant regulations and standards for the development of this product by the importing country in a timely manner. The ceramic export enterprises are not familiar with or understand this. Once they are subject to trade sanctions such as anti-dumping, the enterprises are unable to cope. Subjectively, most export enterprises are more focused on the short-term interests and local interests of individuals, and are unwilling to spend more energy, time and financial resources on anti-dumping and responding, and pay more attention to adopting low-cost means and "the East is not bright." Strategy. The end result is that the entire ceramic export environment is deteriorating and is increasingly detrimental to exporting companies.
China's ceramic enterprises to deal with anti-dumping strategies

China's ceramic enterprises should not only actively respond to anti-dumping cases, but should also start efforts themselves and their outside to prevent the occurrence of anti-dumping cases. Ceramic companies can adopt the following strategies to deal with anti-dumping:

1. Comprehensively improve the scientific and technological content of ceramic products and create high-quality ceramic products.

In view of the weakening of the scientific and technological content of China's ceramic products, ceramic enterprises should introduce advanced production lines and equipment on the one hand, and comprehensively upgrade the hardware facilities of enterprises. At the same time, they must introduce a large number of talents in ceramics, give them generous treatment, and form a high quality. On the other hand, it is necessary to expand the scale of the R&D center so that the R&D center can really play its role, regardless of the quality of the product or the color, style and packaging of the product.

2. Enhance corporate brand awareness

Most of China's ceramic enterprises do not have their own product brands, which is another major weakness of China's ceramic exports. Enterprises should develop and promote their own brands according to their own capabilities. The R&D center of the enterprise should develop products according to the international fashion trends and market demand, and should not blindly follow the trend.

3. Clarify market development strategies, actively explore new markets, and avoid product concentration

China's ceramic enterprises should formulate long-term development plans and clear strategic ideas for the international marketing situation. We must not only focus on the traditional market, but also actively explore new markets and avoid competing with other companies for existing markets in order to diversify product sales and form a healthy competitive order. Even if some companies are difficult to transfer the market at the current stage, they must try to open up new markets and lay the foundation for further development of the company.

4. Strengthen the study of relevant anti-dumping laws and establish a sound information and intelligence system in accordance with international standards.

China's anti-dumping cases against foreign countries have a low response rate, which is closely related to the lack of comprehensive understanding of the WTO's anti-dumping agreements and anti-dumping regulations of key ceramic exporting countries. Ceramic enterprises should strengthen their study of the WTO regulations on dumping and anti-dumping, carefully understand the relevant laws and regulations of major ceramic exporting countries, and understand that those terms and regulations of these agreements are available, and those that must be avoided. At the same time, in the daily work, we must pay attention to the collection of various agreements, business letters, income and expenditure bills, etc. Once an anti-dumping lawsuit occurs, the company can prepare the required information in the shortest possible time.

5. Actively cooperate with the government and guilds to give full play to the role of the government and guilds.

Enterprises should actively use the guild to maintain close relations with the government. On the one hand, it is conducive to enterprises to understand foreign related laws and regulations, on the other hand, it is conducive to giving full play to the role of guilds, strengthening the intensity and effectiveness of publicity, and also between enterprises. Whether there is mutual exchange and common development and progress.

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