Anti-dumping compromise of fasteners ended 47

From June 29, China will impose anti-dumping duties ranging from 6.1% to 26% on carbon steel fastener products imported from the European Union for a period of five years.

The fasteners are commonly known as screw nuts and are mechanical basic parts. They are known as "Industrial Rice". From space shuttles, automobiles and mechanical equipment, to chairs and benches, all have their presence.

This is the first anti-dumping case for fastener products initiated by China. The Chinese Ministry of Commerce made a final decision on June 28. However, the Chinese companies that should have benefited from this experience do not see the joy of imagination.

“We don’t think this is too satisfying for this result.” On June 29, Tu Zhiqing, deputy general manager of Jinyi Industrial, one of the largest fastener manufacturers in the country, could not hide his disappointment. Also dissatisfied with this reporter, there is the China Machinery General Components Industry Association fastener professional association Feng Jinjun.

According to the reporter's understanding, the 47 Chinese appealing companies, including Jinyi Industrial, hoped to obtain the highest tax rate of 64.4%.

A huge psychological and factual gap is that the EU had made a final ruling and the anti-dumping tariff imposed on carbon steel fastener products produced in China was as high as 87%. In view of the Chinese counterparts, this is the highest anti-dumping duty of 26%. In comparison, China is quite hurt.

Take your path

On December 23, 2009, the Ministry of Commerce of China determined that there was dumping of imported carbon steel fasteners originating in the EU. China's domestic industry was substantially damaged, and there was a causal relationship between dumping and substantial damage because of the margin for the product. Form of temporary anti-dumping measures (tax rate 16.8%-24.6%).

The scope of Chinese investigations is directed to imported carbon steel fasteners originally produced in the European Union, including wood screws, tapping screws, screws and bolts (whether or not with nuts or washers, but not including screws and rods for fixing rails) Screws and bolts not exceeding 6 mm) and washers. At the same time, the product range under investigation does not include nuts and fasteners for the maintenance and repair of civil aircraft.

According to China's fastener manufacturers, the mutual trade sanctions between the EU and China are purely a matter of the EU's first choice, and China responds with reasonable criticism.

As early as November 2008, the EU, the main market for the export of fastener products in China, launched an anti-dumping investigation against China. Due to the fact that China's fastener industry may lose 400 million euros in foreign exchange earnings each year and lose 800,000 jobs, Chinese exporters and European importers have repeatedly objected to this.

No fruit.

On December 3, 2009, the European Commission passed the decision to favor the 14 countries, 12 countries to oppose, and 1 country to abstain. We decided to impose a formal anti-dumping tariff of up to 87% for five years on steel fasteners imported from China. One of the largest anti-dumping cases against China.

This blow was significant. In 2008, China exported 2.7 million tons of fasteners and maintained double-digit growth for five consecutive years. However, in 2009, affected by 87% of punitive tariffs in the EU, the number of domestic fasteners was nearly 900,000 tons which could not be exported, resulting in a 43% year-on-year decrease in exports across the industry, and the use of equipment in the fastener industry. The rate also dropped from the previous 84% ​​to about 70%.

"There is a feeling that the debate with the EU seems to be better than the United States." Tu Zhiqing told this reporter.

In the same period as during the European Union’s protest, when the United States and the United States International Trade Commission (ITC) initially filed an anti-dumping investigation against China’s fastener industry, it was determined that the fasteners produced in China did not have a US The United States has also terminated the anti-dumping anti-dumping and anti-subsidy merger investigation on China's fasteners because it caused substantial damage or substantial damage.

“At that time, most of the fasteners we exported to the United States were middle- and low-end products, while those produced by local American companies, including appeal parties, were high-end products such as high-strength steel structural fasteners. How could different products be blamed? We dumped?” Tu Zhiqing told this reporter. “But the same thing, the same reason, when we debate with the EU, many people do not listen.”

"Compromise" ended?

The final ruling of the Ministry of Commerce of the People's Republic of China was that a European company obtained a minimum tax rate of 6.1%, while other EU companies had a rate of 26.0%.

According to our reporter, the lowest tax rate winner, KAMAX-Werke Rudolf Kellermann GmbH & Co. KG, is precisely the only company that cooperates with the Chinese investigation. Business.

“European Union has participated in 58 enterprises that have responded to it, but only Rudolf Kellerman has really cooperated. Although it is not very large, after the Chinese side has verified it on the spot, it has found that the data provided by the other party is still relatively low. Industry insiders told this reporter.

Feng Jinhao also confirmed this. He used the word “arrogant” to describe the attitude of European companies to the Chinese investigation. “All other companies involved do not fill out questionnaires, do not provide data, and do not cooperate with investigations.” This has caused China to establish certain obstacles in determining dumping margins.

The person familiar with the matter told the reporter that domestic fastener companies believe that the preliminary tax rate of the Ministry of Commerce was 16.8%-24.6%. The 47 Chinese appealing companies, including Jinyi, hope that the highest tax rate is 64.4%.

More obstacles arise. In response to this complaint, the relevant department sent a consultation letter to all interested parties in the country. China Machinery Industry Federation naturally actively supports and hopes to increase the determination of dumping margin.

However, automotive, aviation and other fastener user industries have expressed strong opposition. Because of the scope of application of carbon steel fasteners, including the automotive industry, electronic products, electronic equipment, machinery and equipment, construction and general industrial applications. In particular, manufacturing companies that originally purchased foreign products believed that this would accelerate the rise of raw materials and lead to a decline in corporate profits.

“There were also dissenting opinions within the Ministry of Commerce. Some people insisted on continuing anti-dumping investigations. There are also some people who demanded that the fastener industry withdraw the lawsuit,” said the person familiar with the matter.

However, Tu Zhiqing told this reporter that despite the fact that 26% of the final tax rate companies are not satisfied, the effect they received was still very obvious. "Especially automotive fasteners, this year, Jinyi Industrial's subsidiary, which specializes in this product, estimates that sales can double."

"Now that exports to Europe have fallen across the board, the United States is also reluctant to export. For us, both hands are ready." He said, "The foreign market can't give up. There are export opportunities, we must go out. We must also try to fight a lawsuit when encountering trade frictions; Live in China after the implementation of anti-dumping duties, and actively participate in high-speed rail construction."

According to the reporter’s understanding, the Chinese government has still not given up on the EU anti-dumping case that imposes a maximum of 87% of official anti-dumping duties on Chinese fasteners. For the first time, the Chinese government has asked the WTO to investigate the EU. Its dispute settlement agency has also set up an expert group to review the case.

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