China's auto parts industry damage early warning upgrade
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When our products such as textiles, household appliances and motorcycles are repeatedly attacked by the anti-dumping big sticks in the international market, we are tempted to have the illusion that “encountering anti-dumping†has become a patent for developing countries such as China. In fact, developed countries may also dump to developing countries. Developing countries must also learn to use WTO rules to strengthen their self-protection capabilities. When it comes to dumping in the automotive industry, Wang Qinhua, director of the Industrial Damage Investigation Bureau of the Ministry of Commerce, pointed out that we must pay special attention to the automotive industry and pay special attention to spare parts. "The chain of this industry is too long, too wide, and it is particularly decentralized, so it should be highly valued." At present, foreign auto parts have swarmed in, which has caused Wang Qinhua's vigilance. She said: “Although anti-dumping and safeguard measures have not yet been launched for automotive products, some products in upstream and downstream industries, such as steel products, have already been involved.†International industry competition is like a battlefield, and preparations for a rainy day are the way to victory. She has already made preparations. She has already put forward the concept of achieving early warning and upgrading of the auto parts industry during the “11th Five-Year Plan†period. When the crisis was struggling with anti-dumping investigations frequently conducted by foreigners on our products, our own market was also quietly subjected to foreigner's dumping and other infringements. If you can't avoid rain, you will certainly suffer unnecessary losses.
This is by no means alarmist, and the facts are within easy reach. In chemical and other industries, frontal confrontation has already begun.
In recent years, Japan, South Korea, the United States, and France have dumped a large quantity of hydrazine hydrates at low prices in China. This has made China's hydrated hydrazine industry sales prices, pre-tax profits, investment returns, and other indicators have shown a vicious trend of development, resulting in the huge nature of China's hydration and hydration industry. Sexual damage, sales loss of tens of millions of dollars. As a result, the Ministry of Commerce announced in June this year that since June 17th, it will impose anti-dumping duties ranging from 28% to 184% on imported hydrazine hydrates originating in the aforementioned countries for a period of five years. After the United States adopted steel safeguards, the EU and Canada have also taken measures to protect steel trade. The large iron and steel producing country immediately exported a large amount of steel to China and caused a considerable impact on China’s steel companies. In response, the Iron and Steel Industry Association and the five largest iron and steel production enterprises began to file complaints and demanded that the steel industry be investigated for industrial damages, and then began to implement a quota system on these five types of steel imports. Imports within the quota will not impose any additional tariffs, but exceed the quota. Imports will be subject to special tariffs. What has happened in industries such as chemicals and steel, and the Chinese auto industry will never be left alone. At present, as the agency responsible for monitoring foreign imports, the Bureau of Industrial Injury Investigation of the Ministry of Commerce from September 1997 to September 20, 2005 initiated 40 anti-dumping investigations and one safeguard.
At the 2005 China Automotive Industry Development International Forum, Wang Qinhua’s report “Using international rules for the protection and development of China’s automobile and parts industry†gave a wake-up call to all the automotive industry. She made this judgment in the report: The situation of Chinese auto parts being impacted by international giants is even worse than that of the whole vehicle, and there is a possibility of dumping. It is understood that at present, at least 70% of the world’s top 100 parts suppliers are operating in China. There are nearly 1200 foreign-owned or joint venture companies that manufacture auto parts in China. Or the joint venture company accounts for more than 50% of the share. In contrast, there are more than 5,000 domestic parts and components companies in China, which are small in scale, low in concentration and serious in disorder, resulting in a very low overall industry efficiency. "In fact, the impact of foreign auto parts companies on China has already manifested itself. This requires us to be vigilant on this matter," said Wang Qinhua. However, whether it has constituted dumping, whether it is necessary to adopt anti-dumping safeguard measures or countervailing means, Wang Qinhua believes that “it is not yet certain†because “this is to be judged by people in the auto industryâ€. Action "Our country has joined the WTO, so we must learn to use the WTO rules to protect ourselves. We must also learn to use this weapon when foreigners continue to pick up dumping sticks." Wang Qinhua said. Dumping refers to the act of exporting commodities with a value lower than normal in normal trade. It has or is likely to cause harm to the importing country's industry or enterprise producing the same product, and is therefore opposed by the importing country. In case of dumping, anti-dumping may be taken in accordance with WTO rules. Even if it does not constitute dumping, if it causes substantial damage to the industry, safeguard measures and anti-subsidy measures can also be taken. These are trade remedy measures that the parties to the WTO Agreement can adopt. Among them, compared with anti-dumping and anti-subsidy measures, safeguard measures are more fully protective of the domestic industry in a country. Safeguards can adopt various relief methods such as raising tariffs, quantity quotas, and tariff quotas, and since there is no need to prove that the investigated party has “unfair trade practicesâ€, the initiation of safeguard investigations is easier than anti-dumping and countervailing. Then, during the "Eleventh Five-Year Plan" period, how will the Bureau of Industry Damage Investigation of the Ministry of Commerce protect China's auto industry and how will it deal with the impact of auto parts nowadays? Wang Qinhua believes that the risk of China's auto parts industry being affected by imported products has already existed, so the Industrial Damage Investigation Bureau has already taken action on this issue. It is now necessary to integrate the overall development strategy and the “Eleventh Five-Year Plan†in the transition period after China’s accession to the WTO. "The combination of development during the period and the overall planning of the automotive industry.
The industrial damage warning mechanism is an important part of industrial protection. According to the development of China's auto industry, we will focus our early warning on the early warning of the entire automobile and auto parts industry, and establish an effective early warning model and evaluation system. The automobile industry damage warning system can be more perfect.
From the beginning of the operation of this mechanism in 2002, the first pilot was in the automotive industry. The automobile industry early-warning model that we have established uses an analytic hierarchy process and multi-order derivative comparisons to design an analysis method that can determine in advance whether the automobile and main parts industries are damaged or not, and provides an early-warning index of automobile industry damage. From the beginning of the role of this model, all but a few monthly and individual varieties such as parts and components have appeared in the yellow light area. In general, they all operate within the green light area.
However, in response to the current situation, there is still a shortage of our early warning mechanism. At present, our industrial damage warning system does not cover a wide range of areas and there are not many companies involved. Therefore, the early warning mechanism must be fully upgraded to increase coverage and improve the depth of analysis. In particular, we must increase the early warning model for the auto parts industry. And evaluation system research.