The Ministry of Commerce is brewing anti-dumping in the auto parts sector

In the past, the EU, the United States, and other places have been constantly wielding anti-dumping sticks on China's auto parts. In 2008, China may initiate the first anti-dumping investigation in the auto parts industry and use legal weapons to protect local parts and components companies.

At the end of 2007, the Ministry of Commerce held a meeting for key industries to maintain industrial safety. At the meeting, automobiles and parts and components were highly valued as industries with a large number of foreign capital participation. Experts at the meeting revealed that in 2008, China will improve the existing early warning system for automobile industry safety and guide domestic enterprises to deal with anti-dumping investigations initiated by foreign companies. At the same time, it will assist domestic enterprises in launching products targeting foreign products in response to foreign products threatening domestic industry safety. Anti-dumping investigations.

Imported components impact local products

With the rapid development of China's auto market, a large number of auto parts products in China have gone abroad, and foreign parts companies and products have also flooded into China. In 2002, the Ministry of Commerce and the China Automobile Industry Association and other agencies jointly established an early warning system for the damage of the automobile industry. According to the monitoring, in recent years, the number of imported key components has maintained a high growth trend, and there have been yellow alarms on individual types of automotive components.

China is a large exporter of auto parts and a major importer. It is worthy of special attention that starting from 2006, some foreign parts and components have been exported to China. Not only has the number increased significantly, but prices have also declined. Not long ago, the head of procurement of a domestic automobile company said in an interview with this reporter: “The general impression is that the prices of local parts and components companies are relatively low, and the realization of the prices of some imported parts is even lower. The quality is quite good. Of course, we will be more willing to choose imported products when we purchase.” He also said that if you purchase imported products, “Speak out and listen to something better”.

“Some auto parts and components in China are basically monopolized by imported products or products of foreign-funded enterprises in China. Local companies in the industry have been hit by international giants. The survival is difficult and the situation is very serious. We should be highly vigilant,” the source said.

Wei Anli, secretary general of the China Internal Combustion Engine Industry Association, pointed out that in addition to the price of imported products being lower than the cost price or reaching the lowest price in the country of sale, in order to monopolize the market, foreign manufacturers deliberately cut prices for sales and malicious competition, and are also dumping. For example, a component makes a profit of 10% in the United States and only 3% after it exports it to China. It also poses a threat to the survival of similar product manufacturers in China.

Anti-dumping investigation is "a weapon" to protect local industry

According to the statistics report of the WTO, from 1995 to 2006, China has been the country with the highest number of anti-dumping investigations and anti-dumping measures in the world for 12 consecutive years. In 2007, anti-dumping investigations of new global filings showed a downward trend, but China is still the number one target country in the global anti-dumping investigation. From October 22, 2007, the EU anti-dumping investigation against fasteners in China was the second largest case in recent years.

China has also begun to use anti-dumping to protect its own industry. The "Regulations of the People's Republic of China on Anti-dumping and Countervailing Measures" was promulgated and implemented by the State Council on March 25, 1997. This is China's first special regulation on anti-dumping. According to sources from the General Office of the Import and Export Fair Trade Bureau of the Ministry of Commerce, so far, China has launched 48 anti-dumping investigations on foreign products (according to the WTO "countries involved in the number of products involved in the investigation", the number of cases filed is 150). After investigation, there were 35 cases of anti-dumping measures.

“Practice shows that by implementing anti-dumping measures in accordance with law, fairness, and reasonableness, the impact of dumped products from abroad on domestic industries is curbed, and a fair competition trade order is maintained. The production and business conditions of most of the damaged industries have improved markedly, and the industrial competitiveness has increased rapidly.” A source from the Ministry of Commerce said.

China may initiate the first anti-dumping of auto parts.

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