Home » Opinion » Chinese Views
Wheeling and dealing in the EU
Source: Xinhua |
August 18, 2009, Tuesday
|
Print Edition
Print Edition
LAST month, the European Union (EU) launched a series of anti-dumping actions against Chinese products, covering steel wire rod, seamless steel tubes, sodium gluconate, steel cables and aluminum road wheels.
With five cases in just three weeks, such a frequent use of anti-dumping investigations and punitive duties has been unprecedented.
The EU said its decisions were taken against "unfair" trade practices of some Chinese companies, but so far has provided no convincing evidence for its allegations.
Take the case of aluminum road wheels, against which the EU began an anti-dumping investigation last Thursday. The prices of China's wheels exported to the EU were much higher than in its domestic market. Is it logical for any Chinese manufacturer to "dump" their products at a loss on European markets thousands of miles away?
Dumping is the act of a manufacturer exporting a product to foreign markets at a price either lower than home market prices or below the cost of production.
There are indeed unfair practices. On the EU's part. The EU has refused to disclose the list of European companies which had lodged complaints when it started its anti-dumping investigation into Chinese aluminum road wheels. This violates the principle of transparency under World Trade Organization (WTO) rules and the specific regulation of the WTO anti-dumping agreement.
Such an approach is unfair to Chinese companies as it deprives them of their right of defense. Besides, under EU anti-dumping rules, an investigation is not to be initiated unless the complainants represent at least 25 percent of the total EU output of the products in question. Is this fair trade practice when the EU pushes aside its own rule in its anti-dumping investigation against Chinese companies?
The EU has refused to recognize China's market economy status. Instead, it chose Turkey as a substitute country to calculate Chinese companies' cost of producing the aluminum wheels. As a result, China was accused of dumping goods to Europe at an unreasonably low price.
But the choice is arbitrary and unfair to Chinese companies as there is no real comparison between China and Turkey in terms of economic reality or development of their relevant sectors.
The EU's hasty anti-dumping measures is motivated by rising protectionism as it's in the worst recession since the World War II.
With five cases in just three weeks, such a frequent use of anti-dumping investigations and punitive duties has been unprecedented.
The EU said its decisions were taken against "unfair" trade practices of some Chinese companies, but so far has provided no convincing evidence for its allegations.
Take the case of aluminum road wheels, against which the EU began an anti-dumping investigation last Thursday. The prices of China's wheels exported to the EU were much higher than in its domestic market. Is it logical for any Chinese manufacturer to "dump" their products at a loss on European markets thousands of miles away?
Dumping is the act of a manufacturer exporting a product to foreign markets at a price either lower than home market prices or below the cost of production.
There are indeed unfair practices. On the EU's part. The EU has refused to disclose the list of European companies which had lodged complaints when it started its anti-dumping investigation into Chinese aluminum road wheels. This violates the principle of transparency under World Trade Organization (WTO) rules and the specific regulation of the WTO anti-dumping agreement.
Such an approach is unfair to Chinese companies as it deprives them of their right of defense. Besides, under EU anti-dumping rules, an investigation is not to be initiated unless the complainants represent at least 25 percent of the total EU output of the products in question. Is this fair trade practice when the EU pushes aside its own rule in its anti-dumping investigation against Chinese companies?
The EU has refused to recognize China's market economy status. Instead, it chose Turkey as a substitute country to calculate Chinese companies' cost of producing the aluminum wheels. As a result, China was accused of dumping goods to Europe at an unreasonably low price.
But the choice is arbitrary and unfair to Chinese companies as there is no real comparison between China and Turkey in terms of economic reality or development of their relevant sectors.
The EU's hasty anti-dumping measures is motivated by rising protectionism as it's in the worst recession since the World War II.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
