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US alleges furniture dumping
By Dai Yan (China Daily)
Updated: 2004-06-21 07:32
The nation's market economy status is the Achilles' heel once again for
Chinese furniture manufacturers who are facing another round of dumping charge
from the United States.
Denying Chinese-provided statistics, US officials said on Friday they would
impose preliminary tariffs of as much as 198 per cent on some imported Chinese
wooden bedroom furniture.
As much as US$1.2 billion is involved, the largest amount at stake against
Chinese companies. It follows a US decision earlier this year to impose tariffs
on Chinese television imports.
Seven companies that represent about 40 per cent of the sales of Chinese
bedroom furniture to the US will be hit with tariffs ranging from 4.9 per cent
to 24 per cent.
Another 82 companies that responded directly to US enquiries about their
pricing practices will face a duty of 10.9 per cent.
And sales of others - mostly small furniture makers - will be blocked by a
prohibitive tariff of 198 per cent.
The anti-dumping petition was filed last October. A group of 27 US companies
want duties that range from 158 per cent to 441 per cent to offset what they
allege is dumping by 135 Chinese competitors.
A final decision is expected in December and preliminary tariffs will be
collected beginning next week.
Cao Yingchao, an official from the China Furniture Association, denied the
dumping charges, saying they will try for a fairer ruling.
But market economy status is a bottleneck for Chinese manufacturers suffering
from dumping charges, Cao admitted, saying additional government efforts on the
issue are needed.
The US Government does not take Chinese costs as proof when calculating
dumping rates because it views China as a non-market economy. They apply
statistics from other countries where costs are higher, which easily leads to
conclusions of dumping.
The problem of market economy status has been an important issue between
China and the United States. Donald Evans, US secretary of commerce, who is set
to make another visit to China from June 19 to 24, will discuss the issue with
Chinese officials.
China is currently facing more than twice as many US anti-dumping
investigations as any other country, and has had tariffs imposed in 17 different
cases.
Liu Shande, a manager from Guangdong-based Jixiang Wood Products Co, said the
firm exports because its products can sell at higher prices than here at home.
The average profit for exports is as much as 30 per cent, he said.
He said the US manufacturing industry will not receive any benefit from the
dumping charges.
"Even with the high duties imposed, no jobs will be created for the US
industry," he said.
Orders will simply shift from China to other countries like Indonesia,
Malaysia, the Philippines and Viet Nam, he added.
However, Liu said many Chinese jobs will be lost because of what he called an
"unfair decision."
A coalition of more than 30 furniture manufacturers and retailers who import
from China, including Furniture Brands International Inc, JC Penney and Crate
& Barrel, have protested the campaign to impose anti-dumping duties, saying
retail jobs could be lost.
Several furniture companies have warned that logistics and quality problems
could emerge if sourcing shifts abruptly to China's neighbours with less
exporting experience.
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