China's fastener companies eventually won the anti-dumping trade

After four years, China’s fastener industry companies that produced screw nuts finally won the case in anti-dumping trade disputes, and the EU market opened again. In July this year, as China's first lawsuit against the European Union came to a conclusion, China's fastener industry companies that produced screw-and-nut caps broke through the EU's anti-dumping trade barriers.

For one of the two important companies that will be verified by the European Union, Kunshan Chenghe Standard Parts Co., Ltd. in Huaqiao, will not only get back EU orders of at least RMB 100 million per year, but also now have large orders at the end of the year.

Originated from the European Union's anti-dumping tax on certain carbon steel fasteners in China "fasteners" are screws, screws and nuts, also known as "industrial rice," and are an important product of China's exports to the European Union. In 2007, the European Commission, at the request of individual companies in Italy and other countries, initiated an anti-dumping investigation of carbon steel fasteners that China exported to the European Union.

The so-called dumping is when a product sells at a high price when it is sold domestically, and sells a low price when it exports. Anti-dumping is an investigation of dumping, and at the same time it depends on whether there is an industry that produces such a product. Dumping is not causing damage to the domestic industry. There are problems, there is a causal relationship, then the importing country can levy anti-dumping duties.

For Kunshan Chenghe Standard Parts Co., Ltd., the EU market accounts for 80% of the company's export business, and anti-dumping duties are borne by customers. Chenghe's products will completely lose the EU market. “We received an anti-dumping investigation, but if we do not respond to the EU, we must be forced to bear a high anti-dumping tax. This lawsuit is a battle between 'ant' and 'elephant'.” Zhi and so describe.

Leaded by the Ministry of Commerce and Industry's Electrical and Mechanical Chamber of Commerce, China's fastener companies "bundled" to fight. They held a recommendation meeting of a lawyer team in Shanghai. The companies involved in the case met with law firms and chose a team of lawyers. “We have hired a team of 10 people from well-known Shanghai Jintian City and Belgium’s VBB law firm to fight this lawsuit, and our company alone has spent more than 1 million.” Wang Zhihe said that at the time the Electrical and Mechanical Chamber of Commerce in the United Nations 120 A number of fastener export companies have visited the European Union for defense four times, but they have not received EU recognition.

According to reports, in the Sino-European trade dispute, nearly one-third of the country's more than 1800 fastener export enterprises have fallen in the crisis. In January 2009, the European Union decided to impose anti-dumping duties of 26.5% to 85% on some carbon steel fasteners exported from China. In July 2009, the Chinese government officially launched the WTO dispute settlement procedure on anti-dumping measures taken by the EU on Chinese fasteners. In October of the same year, the WTO's dispute settlement agency formally established an expert group to examine the case. This trade dispute has risen from the corporate level to the national level.

Applying WTO rules to win and return to the EU's 100 million yuan annual orders. "The EU sent people to our company twice. The first time was to investigate whether China's fastener industry has a market economy status. Once it is judged as not having a market economy status, There is no room for manoeuvre in this case. We shoulder the hope of the entire industry," Wang Zhihe said. In this four-year anti-dumping trade dispute, Cheng He is one of the two most important enterprises that have undergone EU verification in the entire process, from participation sampling to secondary verification.

The turning point lies in the WTO rules. The European Union has a "Anti-dumping Basic Regulations," which stipulates that products from China do not implement separate tax rates, but instead apply a uniform anti-dumping tax rate. This tax rate is often very high. This is the law of the EU levying high anti-dumping duties on Chinese fastener companies. basis. The WTO rules require that a separate tax rate must be calculated for each exporter, a specific anti-dumping tax should be levied, and no anti-dumping tax should be imposed on it, giving an anti-dumping tax rate.

After grasping this favorable aspect, after a year and a half of preparations and appeals, in December 2010, the World Trade Organization Expert Group issued a ruling report to support China’s claim on the issue of separate tax rates.

However, the EU expressed its dissatisfaction with the WTO's determination and appealed against the WTO ruling on March 25, 2011. On March 30, the Chinese side also filed another appeal on the remaining issues that were not supported by the WTO panel. On July 15, 2011, the WTO issued the final ruling that the European Union’s January 2009 anti-dumping measures against Chinese fasteners violated the provisions of the WTO's anti-dumping agreement. The EU should revoke the anti-dumping order. The "ant" made a concerted effort to finally pull down the "elephant." "The company's original old customers in the EU are all, and the success will be for the company to get back EU orders for at least one billion yuan each year." Wang Zhihe is very happy and the company has successfully opened up markets such as the United States and Russia. In the first half of the year, the export value has broken 100 million yuan. In the second half of the year, with the return of the EU market, the company's global business will be more solid. "The success is a great blow to the EU. This is an institutional victory. In the future, all Chinese companies involved in this law will benefit." "After four years, this case finally won the case. This is China's WTO game." The first victory in the rules. The reopening of the EU market is expected to at least get back 100 million EU orders per year for us.” Wang Zhihe, sales manager of Kunshan Chenghe Standard Parts Co., Ltd. recalled this experience ,Emotion.

Diversified experience makes "small workshops" export "predators"

Recently, international exchange rates have changed a lot. Many export companies have suffered heavy losses due to the impact of the US dollar exchange rate, while export-oriented and standard parts have not been affected. Large orders have been placed at the end of the year. Analysing the reasons, Wang Zhihe said, “Because we have been using export credit insurance, we have been escorting overseas emerging markets. In the first half of this year, the company’s exports amounted to 100 million, an increase of 30% year-on-year.” In the second half of the year, with the EU market for China Fastening of fasteners will improve the export situation.

In the past 10 years, honesty and standard parts have leaped from the original “little workshop” that was unremarkable to China’s fastener industry leader. Exports are among the top players in the industry. It is no accident.

In 2007, the European Union imposed anti-dumping measures on the fastener industry in China, and one third of domestic fastener export enterprises have closed down. In order to survive, Cheng and the "tentacles" have been extended to the United States, Russia, Eastern Europe and other countries and regions. Millions of dollars were invested in professional exhibitions in the United States, Japan, Turkey, Russia, South Africa and other places, quickly opening access to emerging markets such as the United States and Russia.

"Once the EU was over-reliance on the EU single market, the European Union had a sudden move and our company was on the verge of becoming a leader. Now that the market is diversified, if any one of the markets goes wrong, our export volume will not be greatly affected. With the company's business volume steadily. In terms of growth, we also screened customers, and based on factors such as order stability, supply, and product convergence, we selected long-term customers to cooperate and stabilize the export market.” Wang Zhihe told reporters that the company’s orders have now been changed from Million Dollar's "small orders" have grown into "big orders" of millions of dollars. The United States is the most important export market, Russia is the fastest growing market, and the "New World" has become the "shield" against companies' market risks. .

Sincerely and has a team of more than 20 high-precision R&D team, we are committed to market-driven independent innovation and tailor-made for customers. In order to open up a "new continent" and develop "small screws", Cheng has invested a large amount of scientific research funds, and imported high-end machinery and equipment from Taiwan to provide customers with the most comprehensive project support and to diversify their products from singleness. Today, "small screws" have accounted for 50% of the company's exports, propped up "half of the country."