According to the Ministry of Commerce, China’s solar cells have recently been investigated by the United States in anti-dumping and countervailing measures. This is the first “double reverse†investigation initiated by the United States in the field of clean energy in China, and a total of 75 Chinese companies have been sued. It is understood that since 2009, the high frequency of US anti-dumping and countervailing investigations initiated by Chinese products has been extremely rare in the history of world trade relief. In the field of international trade, where there is no smoke, it is the sword or retreat. For Chinese enterprises, it is no longer a question that needs thinking.
Jedi fight back - in the WTO to prosecute the European Union for anti-dumping and countervailing, the leader of the fastener industry - Zhejiang Jin Yi Industrial Co., Ltd. (hereinafter referred to as Gem Industrial) Cai Jinchang, general manager is familiar again. For him and the team he leads, dealing with foreign anti-dumping and countervailing investigations is already commonplace. Facing the menacing foreign anti-dumping and anti-subsidy investigations, the choice of Jinyi Industrial was: Jedi counterattack.
It is understood that fasteners are also called standard parts in the market. They are the general term for a type of mechanical parts that are used when fastening two or more parts (or components) as a whole. Screws and nuts are all fasteners. Fasteners are the most widely used mechanical basic parts and they are in great demand. Jinyi Industrial's products are exported to many countries and regions in Europe and America, and overseas sales once accounted for 80% of its total income. In this process, Jinyi Industrial has become China's fastener industry "big brother."
However, the rapid development momentum of Jinyi Industrial and the inexpensive products have made the EU's fastener companies restless. On November 9, 2007, the European Commission decided to launch a dumping investigation on carbon steel fasteners imported from China. Although some Chinese companies actively responded, the EU decided to impose anti-dumping duties of 26.5% to 85% on Chinese fasteners for a period of five years on January 31, 2009, despite China’s opposition. Among them, the anti-dumping tax rate for Jin Yi Industrial was 77.5%.
The anti-dumping investigation of the European Union involved more than 1,700 enterprises in China and made it impossible to export a large number of fasteners in China. In 2009 alone, there were nearly 900,000 tons of fasteners that China could not export. The amount involved was 760 million US dollars. Affected by this, the development of the fastener industry in China has been greatly affected. Only one-third of the enterprises in Jiaxing have closed down, one-third of the companies have suffered losses, and one-third of companies have barely survived. Since 2009, Gemworld has had no performance in the EU market, and its overseas sales revenue has also dropped from 80% at its peak to 30% at present.
As the industry leader, Jinyi Industrial decided to resolutely fight back. From 2008 to 2009, Jinyi Industry went to the European Union and other countries for anti-dumping defenses and lobbying four times. At the same time, it strongly demanded that the Chinese government formally launch the WTO through the WTO (WTO) on the anti-dumping measures taken by EU against fasteners in China. Dispute resolution expert group hearing process. On July 31, 2009, the Chinese government resorted to relevant WTO legislation and anti-dumping measures to the WTO dispute settlement mechanism. This case became China's first case of prosecuting the European Union at the WTO.
The "legislative legislation" referred to above refers to the "separate tax rate" stipulated in Article 9(5) of the EU's "Anti-dumping Basic Regulations." According to WTO rules, for all enterprises participating in anti-dumping suits, the importing country should levy taxes on different commodities at different rates due to the different prices of exported goods. However, based on the determination of the status of China's non-market economy countries, the EU imposes a high anti-dumping tax on all companies surveyed, unless the surveyed company meets its five rigorous requirements.
After several rounds of defenses by the Chinese side, investigations by the WTO expert group, and investigations by the WTO's Appellate Body, on July 15 this year, the WTO Appellate Body issued a ruling report, which found that Article 9(5) of the EU's "Anti-dumping Basic Regulations" related to "separate tax rates". The regulations violated the WTO rules. At the same time, they overturned some of the rulings of the expert group to support China’s position and ruled that the EU’s anti-dumping measures on carbon steel fasteners such as screws, nuts, bolts, etc. should be fair in the domestic industry, normal value and export price. Comparisons and other aspects violate the WTO rules.
Jin Yi Industrial victory! China has won! When this news was returned to China, the industry was boiling. This is because China’s first trade dispute with the EU since the WTO accession to the WTO was also the first successful case in which Chinese companies achieved complete victory in responding to foreign anti-dumping investigations. In this regard, the person in charge of the Treaty and Law Division of the Ministry of Commerce commented that the EU is one of the WTO members that has launched the most anti-dumping investigations against Chinese products in the world, and the legal provisions of Article 9(5) of the Anti-dumping Basic Regulations on the separate tax rates. In the long run, Chinese companies have been treated unfairly. The case won by the Chinese side will help improve the competitive environment of Chinese companies in the international market, including the EU, and will also increase the confidence of WTO members in WTO rules and the multilateral trading system. "This is not only a victory for China's industry but also a victory for the WTO rules," said the person in charge.
Victory is not over – corporate executives sigh for the first time to trade disputes with the European Union to the WTO, in the response to foreign anti-dumping investigations for the first time to achieve complete victory, widely praised by the Ministry of Commerce and the industry, as the general manager of Jinyi Industry, Cai Jinzhang should feel Very happy to be right. However, when I saw the young general manager and expressed congratulations and respect to him, he sighed long.
It turns out that for Jinyi Industrial, the “China’s first case†that made them suddenly famous is just the “tip of the iceberg†in all the anti-dumping and countervailing investigations they have experienced. In recent years, Gemworld has successively dealt with anti-dumping and countervailing investigations in Canada, the European Union, Mexico, Russia, the United States, and other countries and organizations. Through many clashes, they have known the country well. Speaking of this victory, Cai Jinzhang told the author: "According to the EU's consistent practice, it is impossible to immediately implement the WTO appeals body's ruling."
More importantly, anti-dumping lawsuits concerning fasteners are an important challenge to the EU's anti-dumping system. Once the European Union's enforcement of the WTO Appellate Body's ruling means that China's fastener products will return to the EU market, it also means that the EU It will be much more difficult to impose excessive anti-dumping duties on Chinese companies in the future. "Therefore, the WTO ruling is one thing, and the EU's implementation of non-execution is another matter. On the surface, we have won a complete victory and we have not actually won the final victory," said Cai Jinzhang.
As the manager of the financial department of Jinyi Industrial, Xue Ling fully understood the long sigh of Cai Jinzhang, the general manager. She told the author that they now respond to foreign anti-dumping and anti-subsidy investigations with a "recruitment plan", otherwise it will be difficult to survive. For so many years of responding, they have encountered too many difficulties and experienced too much difficulty. "We, like many companies in China, have no other choice but to fight in the end," said Xue Ling.
Xue Ling told the author that responding to anti-dumping and countervailing investigations is a job that requires high IQ, and it needs to have many qualities and capabilities. For example, the questionnaires to be filled out and the materials that need to be submitted are all in English. It is necessary to accurately understand the meaning of each sentence. Otherwise, it is easy to see the situation of “worse and lose everythingâ€; for example, questions asked by foreign questionnaires. They are very meticulous. Their communication with foreign investigative agencies is all done via e-mail. Many problems in this form of communication appear to be fragmented. Every time you answer a question, you must consider all issues related to it. Otherwise, the other person will be The wrong decision is made when there is little knowledge; for example, the investigation of anti-dumping and countervailing duties requires a lot of data to support it. However, these data are not simply piled up, but need to be collected according to scientific methods on the basis of co-ordinating overall work. And calculations, and to attach a lot of explanatory information ...
When the author interviewed in Jiaxing City, the Argentine government had just stated that it would follow the previous practice of Brazil and the United States to conduct anti-dumping investigations on automobile tires originating in China. As a domestic company specializing in the production and sales of various types of aluminum alloy forged wheels, steel construction vehicle wheels and steel automobile wheels, Jiaxing Sitong Wheels Co., Ltd. is actively responding.
Talking about the difficulties in responding to anti-dumping and anti-subsidy, Yang Ruishan, the company's executive deputy general manager, also sighed. He said that responding to foreign anti-dumping and countervailing investigations is a high-intelligence job and requires the establishment of a strong working team. The team's personnel must not only be very hard in statistical, accounting, computer, legal, and other related businesses, but also have a serious, rigorous work attitude and the spirit of non-payment, fear of hardship, and continuous combat. And these talents are very scarce in our country. “Now, the number of certified public accountants and lawyers who specialize in this field in China is very limited. It is impossible for the company’s own strength to develop enough talents in the short term,†says Yang Ruishan.
Preparing for the rainy day – a crucial step to prepare for the key link Not long ago, a US Senate voted to pass the “Currency Exchange Rate Supervision Reform Act 2011†news in the country caused a great uproar, relevant experts have predicted that once the bill comes into force, an important consequence of the bill is trade. The war has intensified. In the global trade war, an indisputable fact is that China has become the first target country and the most victimized country for trade friction. For this reason, relevant responsible persons of the Ministry of Commerce have repeatedly called on domestic enterprises to "unite their unity and unanimously". It is undeniable that behind the intensification of the global trade war, many political factors cannot be controlled by the company itself, but it does not mean that the company has no room for any action.
“For enterprises, the most important thing is to plan ahead and make preparations at the key links.†Deputy General Manager Tu Zhiqing, who specializes in responding to anti-dumping and countervailing investigations and lawsuits, said that the company is in a strategic position. Tu Zhiqing also has an identity as deputy secretary general of the Jiaxing Fasteners Import & Export Enterprises Association. How to deal with foreign anti-dumping and countervailing investigations, Tu Zhiqing has done a lot of in-depth research. At present, under the joint efforts of Tu Zhiqing and colleagues, Jinyi Industry has been able to independently respond to foreign anti-dumping and countervailing investigations without the participation of professional lawyers and certified public accountants.
In the interview, the author learned that successful response to foreign anti-dumping and anti-subsidy investigations requires a lot of homework. For example, in understanding, we must understand that foreign anti-dumping and anti-subsidy investigations will only become increasingly intensified. It is impossible for them to hide. Only the “sword†will be given a way out; in the process of response, a strong work team must be formed; In terms of financial calculations, it is necessary to conduct accounting in accordance with internationally accepted accounting systems and guidelines; in the face of difficulties, it is necessary to give full play to the role of attorneys and certified public accountants; long-term plans, establish market monitoring and early warning mechanisms, timely access to valuable information, etc. . There are two points that require special attention from companies: First, they must pay attention to the construction of information systems, master a large amount of detailed data, and learn to use data to speak. Second, they must accelerate the upgrading of enterprise transformation products and constantly optimize the product structure and internal and external sales structure.
It is understood that most companies in China do not attach importance to the collection, sorting, and application of various data. For most companies, all data has been in a "sleep" or "half-sleep" state. In order to effectively respond to foreign anti-dumping and countervailing investigations, companies must “wake up†these sleeping data.
The important reason for the success of Jinyi Industrial is that its basic management is relatively solid, and the original records and various types of ledgers are sound and complete. In particular, the company's already established ERP computer management system is relatively scientific and advanced, and the calling data is accurate, fast, and flexible. , convenience, and analysis of corporate economic activity is very detailed. Based on these solid data, Gemworld’s response to foreign anti-dumping and countervailing measures is increasingly handy. For example, in a counter-dumping investigation against Canada, Jinyi Industry provided thousands of management data to Canada in a short period of time, allowing the Canadian investigation authority to suspicion, believability, trust, and persuasion, and the final anti-dumping tax rate. Actually reduced from the original 30.99% to 10.01%. "Without solid data as support, responding to anti-dumping and countervailing duties is like holding a large knife and the opponent's cannon match. There is almost no chance of winning." In the interview, many people in the industry sent such an excuse.
According to the heads of some outward-looking enterprises in Jiaxing, it is fundamental for us to successfully respond to anti-dumping and countervailing measures from abroad, accelerate the upgrading of enterprise transformation products, and constantly optimize the product structure and internal and external sales structure. The reason why foreign countries often carry out anti-dumping and anti-subsidy investigations in China is that the price of our products is low. In fact, although low-priced products sell well, they have low added value. Although the company has large cash flow, it does not make much money. Therefore, only by continuously increasing the added value of the products and then increasing the prices of the products can we make substantial profits while avoiding anti-dumping and countervailing sanctions. At the same time, only by accelerating product transformation and upgrading can we stand the test of brutal competition in the international market, stand the test of changes in economic policies and operating environment, and make the company invincible forever.
Jedi fight back - in the WTO to prosecute the European Union for anti-dumping and countervailing, the leader of the fastener industry - Zhejiang Jin Yi Industrial Co., Ltd. (hereinafter referred to as Gem Industrial) Cai Jinchang, general manager is familiar again. For him and the team he leads, dealing with foreign anti-dumping and countervailing investigations is already commonplace. Facing the menacing foreign anti-dumping and anti-subsidy investigations, the choice of Jinyi Industrial was: Jedi counterattack.
It is understood that fasteners are also called standard parts in the market. They are the general term for a type of mechanical parts that are used when fastening two or more parts (or components) as a whole. Screws and nuts are all fasteners. Fasteners are the most widely used mechanical basic parts and they are in great demand. Jinyi Industrial's products are exported to many countries and regions in Europe and America, and overseas sales once accounted for 80% of its total income. In this process, Jinyi Industrial has become China's fastener industry "big brother."
However, the rapid development momentum of Jinyi Industrial and the inexpensive products have made the EU's fastener companies restless. On November 9, 2007, the European Commission decided to launch a dumping investigation on carbon steel fasteners imported from China. Although some Chinese companies actively responded, the EU decided to impose anti-dumping duties of 26.5% to 85% on Chinese fasteners for a period of five years on January 31, 2009, despite China’s opposition. Among them, the anti-dumping tax rate for Jin Yi Industrial was 77.5%.
The anti-dumping investigation of the European Union involved more than 1,700 enterprises in China and made it impossible to export a large number of fasteners in China. In 2009 alone, there were nearly 900,000 tons of fasteners that China could not export. The amount involved was 760 million US dollars. Affected by this, the development of the fastener industry in China has been greatly affected. Only one-third of the enterprises in Jiaxing have closed down, one-third of the companies have suffered losses, and one-third of companies have barely survived. Since 2009, Gemworld has had no performance in the EU market, and its overseas sales revenue has also dropped from 80% at its peak to 30% at present.
As the industry leader, Jinyi Industrial decided to resolutely fight back. From 2008 to 2009, Jinyi Industry went to the European Union and other countries for anti-dumping defenses and lobbying four times. At the same time, it strongly demanded that the Chinese government formally launch the WTO through the WTO (WTO) on the anti-dumping measures taken by EU against fasteners in China. Dispute resolution expert group hearing process. On July 31, 2009, the Chinese government resorted to relevant WTO legislation and anti-dumping measures to the WTO dispute settlement mechanism. This case became China's first case of prosecuting the European Union at the WTO.
The "legislative legislation" referred to above refers to the "separate tax rate" stipulated in Article 9(5) of the EU's "Anti-dumping Basic Regulations." According to WTO rules, for all enterprises participating in anti-dumping suits, the importing country should levy taxes on different commodities at different rates due to the different prices of exported goods. However, based on the determination of the status of China's non-market economy countries, the EU imposes a high anti-dumping tax on all companies surveyed, unless the surveyed company meets its five rigorous requirements.
After several rounds of defenses by the Chinese side, investigations by the WTO expert group, and investigations by the WTO's Appellate Body, on July 15 this year, the WTO Appellate Body issued a ruling report, which found that Article 9(5) of the EU's "Anti-dumping Basic Regulations" related to "separate tax rates". The regulations violated the WTO rules. At the same time, they overturned some of the rulings of the expert group to support China’s position and ruled that the EU’s anti-dumping measures on carbon steel fasteners such as screws, nuts, bolts, etc. should be fair in the domestic industry, normal value and export price. Comparisons and other aspects violate the WTO rules.
Jin Yi Industrial victory! China has won! When this news was returned to China, the industry was boiling. This is because China’s first trade dispute with the EU since the WTO accession to the WTO was also the first successful case in which Chinese companies achieved complete victory in responding to foreign anti-dumping investigations. In this regard, the person in charge of the Treaty and Law Division of the Ministry of Commerce commented that the EU is one of the WTO members that has launched the most anti-dumping investigations against Chinese products in the world, and the legal provisions of Article 9(5) of the Anti-dumping Basic Regulations on the separate tax rates. In the long run, Chinese companies have been treated unfairly. The case won by the Chinese side will help improve the competitive environment of Chinese companies in the international market, including the EU, and will also increase the confidence of WTO members in WTO rules and the multilateral trading system. "This is not only a victory for China's industry but also a victory for the WTO rules," said the person in charge.
Victory is not over – corporate executives sigh for the first time to trade disputes with the European Union to the WTO, in the response to foreign anti-dumping investigations for the first time to achieve complete victory, widely praised by the Ministry of Commerce and the industry, as the general manager of Jinyi Industry, Cai Jinzhang should feel Very happy to be right. However, when I saw the young general manager and expressed congratulations and respect to him, he sighed long.
It turns out that for Jinyi Industrial, the “China’s first case†that made them suddenly famous is just the “tip of the iceberg†in all the anti-dumping and countervailing investigations they have experienced. In recent years, Gemworld has successively dealt with anti-dumping and countervailing investigations in Canada, the European Union, Mexico, Russia, the United States, and other countries and organizations. Through many clashes, they have known the country well. Speaking of this victory, Cai Jinzhang told the author: "According to the EU's consistent practice, it is impossible to immediately implement the WTO appeals body's ruling."
More importantly, anti-dumping lawsuits concerning fasteners are an important challenge to the EU's anti-dumping system. Once the European Union's enforcement of the WTO Appellate Body's ruling means that China's fastener products will return to the EU market, it also means that the EU It will be much more difficult to impose excessive anti-dumping duties on Chinese companies in the future. "Therefore, the WTO ruling is one thing, and the EU's implementation of non-execution is another matter. On the surface, we have won a complete victory and we have not actually won the final victory," said Cai Jinzhang.
As the manager of the financial department of Jinyi Industrial, Xue Ling fully understood the long sigh of Cai Jinzhang, the general manager. She told the author that they now respond to foreign anti-dumping and anti-subsidy investigations with a "recruitment plan", otherwise it will be difficult to survive. For so many years of responding, they have encountered too many difficulties and experienced too much difficulty. "We, like many companies in China, have no other choice but to fight in the end," said Xue Ling.
Xue Ling told the author that responding to anti-dumping and countervailing investigations is a job that requires high IQ, and it needs to have many qualities and capabilities. For example, the questionnaires to be filled out and the materials that need to be submitted are all in English. It is necessary to accurately understand the meaning of each sentence. Otherwise, it is easy to see the situation of “worse and lose everythingâ€; for example, questions asked by foreign questionnaires. They are very meticulous. Their communication with foreign investigative agencies is all done via e-mail. Many problems in this form of communication appear to be fragmented. Every time you answer a question, you must consider all issues related to it. Otherwise, the other person will be The wrong decision is made when there is little knowledge; for example, the investigation of anti-dumping and countervailing duties requires a lot of data to support it. However, these data are not simply piled up, but need to be collected according to scientific methods on the basis of co-ordinating overall work. And calculations, and to attach a lot of explanatory information ...
When the author interviewed in Jiaxing City, the Argentine government had just stated that it would follow the previous practice of Brazil and the United States to conduct anti-dumping investigations on automobile tires originating in China. As a domestic company specializing in the production and sales of various types of aluminum alloy forged wheels, steel construction vehicle wheels and steel automobile wheels, Jiaxing Sitong Wheels Co., Ltd. is actively responding.
Talking about the difficulties in responding to anti-dumping and anti-subsidy, Yang Ruishan, the company's executive deputy general manager, also sighed. He said that responding to foreign anti-dumping and countervailing investigations is a high-intelligence job and requires the establishment of a strong working team. The team's personnel must not only be very hard in statistical, accounting, computer, legal, and other related businesses, but also have a serious, rigorous work attitude and the spirit of non-payment, fear of hardship, and continuous combat. And these talents are very scarce in our country. “Now, the number of certified public accountants and lawyers who specialize in this field in China is very limited. It is impossible for the company’s own strength to develop enough talents in the short term,†says Yang Ruishan.
Preparing for the rainy day – a crucial step to prepare for the key link Not long ago, a US Senate voted to pass the “Currency Exchange Rate Supervision Reform Act 2011†news in the country caused a great uproar, relevant experts have predicted that once the bill comes into force, an important consequence of the bill is trade. The war has intensified. In the global trade war, an indisputable fact is that China has become the first target country and the most victimized country for trade friction. For this reason, relevant responsible persons of the Ministry of Commerce have repeatedly called on domestic enterprises to "unite their unity and unanimously". It is undeniable that behind the intensification of the global trade war, many political factors cannot be controlled by the company itself, but it does not mean that the company has no room for any action.
“For enterprises, the most important thing is to plan ahead and make preparations at the key links.†Deputy General Manager Tu Zhiqing, who specializes in responding to anti-dumping and countervailing investigations and lawsuits, said that the company is in a strategic position. Tu Zhiqing also has an identity as deputy secretary general of the Jiaxing Fasteners Import & Export Enterprises Association. How to deal with foreign anti-dumping and countervailing investigations, Tu Zhiqing has done a lot of in-depth research. At present, under the joint efforts of Tu Zhiqing and colleagues, Jinyi Industry has been able to independently respond to foreign anti-dumping and countervailing investigations without the participation of professional lawyers and certified public accountants.
In the interview, the author learned that successful response to foreign anti-dumping and anti-subsidy investigations requires a lot of homework. For example, in understanding, we must understand that foreign anti-dumping and anti-subsidy investigations will only become increasingly intensified. It is impossible for them to hide. Only the “sword†will be given a way out; in the process of response, a strong work team must be formed; In terms of financial calculations, it is necessary to conduct accounting in accordance with internationally accepted accounting systems and guidelines; in the face of difficulties, it is necessary to give full play to the role of attorneys and certified public accountants; long-term plans, establish market monitoring and early warning mechanisms, timely access to valuable information, etc. . There are two points that require special attention from companies: First, they must pay attention to the construction of information systems, master a large amount of detailed data, and learn to use data to speak. Second, they must accelerate the upgrading of enterprise transformation products and constantly optimize the product structure and internal and external sales structure.
It is understood that most companies in China do not attach importance to the collection, sorting, and application of various data. For most companies, all data has been in a "sleep" or "half-sleep" state. In order to effectively respond to foreign anti-dumping and countervailing investigations, companies must “wake up†these sleeping data.
The important reason for the success of Jinyi Industrial is that its basic management is relatively solid, and the original records and various types of ledgers are sound and complete. In particular, the company's already established ERP computer management system is relatively scientific and advanced, and the calling data is accurate, fast, and flexible. , convenience, and analysis of corporate economic activity is very detailed. Based on these solid data, Gemworld’s response to foreign anti-dumping and countervailing measures is increasingly handy. For example, in a counter-dumping investigation against Canada, Jinyi Industry provided thousands of management data to Canada in a short period of time, allowing the Canadian investigation authority to suspicion, believability, trust, and persuasion, and the final anti-dumping tax rate. Actually reduced from the original 30.99% to 10.01%. "Without solid data as support, responding to anti-dumping and countervailing duties is like holding a large knife and the opponent's cannon match. There is almost no chance of winning." In the interview, many people in the industry sent such an excuse.
According to the heads of some outward-looking enterprises in Jiaxing, it is fundamental for us to successfully respond to anti-dumping and countervailing measures from abroad, accelerate the upgrading of enterprise transformation products, and constantly optimize the product structure and internal and external sales structure. The reason why foreign countries often carry out anti-dumping and anti-subsidy investigations in China is that the price of our products is low. In fact, although low-priced products sell well, they have low added value. Although the company has large cash flow, it does not make much money. Therefore, only by continuously increasing the added value of the products and then increasing the prices of the products can we make substantial profits while avoiding anti-dumping and countervailing sanctions. At the same time, only by accelerating product transformation and upgrading can we stand the test of brutal competition in the international market, stand the test of changes in economic policies and operating environment, and make the company invincible forever.
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