The Confusion and Conformity of Auto Parts Enterprises Under Double Shadows

On January 24, the European Commission issued a final review of the investigation of the anti-dumping measures against aluminum wheels in China, and decided to extend the deadline for the implementation of anti-dumping measures by 5 years, and the anti-dumping duty rate will continue to be maintained at 22.3%.

The previous day, the U.S. Department of Commerce announced the final results of the investigation of the "double reverse" (anti-dumping and countervailing) investigations on Chinese truck and bus tires. The US International Trade Commission, which is responsible for damage investigations, will make a final ruling by March 6th. If the outcome of the final ruling is an affirmative ruling that the card-car tires from China are determined to cause substantial damage or damage to the US tire industry, the final anti-dumping and countervailing measures will be implemented by March 13. In fact, the new President of the United States, Trump, had promised voters during the election campaign to impose a 45% high tariff on Chinese goods.

All kinds of signs seem to indicate that protectionism has been warming up, which has brought yet another uncertainty for China's auto parts exports.

How many argue helpless <br> <br> Since 2008, more and more countries and regions to China's auto parts a "dual" investigation or even impose a "dual" tax to Chinese companies is not a small Loss.

On September 11, 2009, Obama, then president of the United States, decided to impose restrictive tariffs on Chinese passenger cars and light truck tires for three consecutive years. Afterwards, the European Union, Australia, India, Egypt, Colombia, Brazil and the Eurasian Economic Commission (Russian, Belarus, Kazakhstan) and other countries and regions (organizations) successively launched "double reverse" investigations on relevant Chinese parts and components.

The reason for the external roots is that since the outbreak of the international financial crisis in 2008, the global economy has been sluggish, international trade frictions have been increasing, and trade protectionism has become prevalent.

Recently, after the European Commission released the final review of the sunset review of China's aluminum wheel anti-dumping measures, Wang Hejun, director of the Trade Relief and Investigation Bureau of the Ministry of Commerce of the People's Republic of China, stated that the price of Chinese aluminum wheels sold in Europe is higher than that in China and does not constitute dumping.

In an interview with reporters, Xiao Xiaojun, deputy general manager of CITIC Dicastal Corp., said: “The facts we provided during the final defense stage are very convincing. The European Commission’s final ruling is clearly a protectionist act.” In this regard, I was very disappointed.

The former secretary general of the China Association of Automobile Manufacturers Wheel Committee Li Xiaoqing noticed that the complaints submitted by the European Wheel Hub Manufacturers Association had problems with the qualifications of applicants and alternative countries, and did not comply with the relevant regulations of the World Trade Organization.

Wang Xiaodong, deputy secretary-general of the Wheel Committee of the China Association of Automobile Manufacturers, told the reporter: “The European Commission has retrieved some spurious data exaggerated by trading companies from the Internet and used this as a basis to refer to the excessive production of Chinese aluminum alloy wheels and the impact on the European aluminum wheel industry. .this is not fair."

There are more positive response does not say a negative impact worth mentioning <br> <br> parts export trade protectionism against China has become a historical problem. In this regard, related companies have different reactions and actions.

In February 2011, three US companies sued Chinese companies for illegal dumping of automotive glass. The US Department of Commerce immediately investigated the case. Fuyao Glass Group identified loopholes and irrationalities in the preliminary ruling of the United States and actively counterclaimed it. It took more than three years and won a great victory. This is a typical case of actively responding to the "double reaction."

Shandong Linglong Tire Co., Ltd. invested in Thailand as early as 2012 to build an annual production capacity of 12 million sets of semi-steel radial tires and 1.2 million sets of all-steel radial tires. Thai companies do not fall within the "double reverse" scope of the United States. Prior to the "double reverse" investigation, Exquisite had transferred the US market order step-by-step to the Thai factory.

Yang Hong, Minister of Export Department of Qingdao Sen Unicorn Tire Co., Ltd., told reporters: “The United States is the main export market for forest unicorn tires. By the end of 2015, we had built a tire factory in Thailand with an annual output of 12 million tires, all of which were sold to the United States. It is very good for avoiding the risk of 'double reverse'."

Linglong and Sen Qilin are typical enterprises that have successfully responded to the “double reverse” in the transfer of production bases.

The person in charge of a large export-oriented aluminum wheel manufacturer in China said in an interview: “We are developing directional technologies such as aviation and robotics for the next 20 years.” This is a representative of relying on transformation and upgrading to respond to “double reactions”.

“The group does not have a marketing department. For details, please ask the subsidiary.” The relevant person in charge of a group in the domestic automotive aluminum wheel industry actually does not know that the EU’s deadline for imposing “anti-dumping” tariffs on Chinese aluminum wheels has been extended by 5 years.

"We have already said many things about the 'double reverse' issue. We don't want to say the same thing and we don't want to say any more." The head of another large export-oriented company in the domestic automotive aluminum wheel industry showed frustration and frustration.

Export ills to be cleared <br> <br> China's auto parts exports always encounter "dual", in addition to trade protectionism mischief, also exposed some problems still exist in the industry itself.

"Why is the damage to trade protectionism concentrated on parts such as aluminum wheels, tires, and glass?"

Li Xiaoqing answered the reporter: “The process of these parts and components is relatively simple, easy to manufacture, and it belongs to rough parts. Its export business is bigger and stronger, and it is vulnerable to foreign pressure.”

Xiaojun said: “The large-scale and strong auto parts industry such as aluminum wheels and glass in China is likely to become the object of trade protectionism. In addition, individual companies have unscrupulous competition and bury hidden dangers in the export of parts and components.”

On the one hand, the competition in the international market is becoming increasingly fierce; on the other hand, there is a problem that the auto parts exports are subject to decentralization and chaotic order. The person in charge of a large export company in the automotive tire industry said in an interview with reporters: “The disorder in order is mainly reflected in vicious competition and illegal export. As a result, the export price of products is difficult to unify and damages the overall brand image of Chinese auto parts. ."

Yang Liqiang, director of the China Foreign Economic and Trade Research Office of the Institute of International Economics of the University of International Business and Economics, also pointed out: "Some export-oriented companies in the domestic auto parts industry have no experience in building local competitive relations."

Xiaojun said: "We hope that the government will strive for China to gain market economy status as soon as possible, prompting all countries and regions to strictly abide by the rules of the World Trade Organization, and prevent companies from being often treated as unfair and unreasonable 'replacement countries' in dealing with 'double reactions'. At the same time, we hope relevant management departments can better guide enterprises, limit the construction of inferior quality capacity, strengthen export control, protect high-quality enterprises, and establish national brands."

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