Nuts, bright swords, sharp-edged nuts, bright swords, sharp edges

Text / Wu Yongyi Chen Yuanyuan On July 15, 011, the decision of the World Trade Organization (WTO) Appellate Body on the Chinese Fastener Appeal case attracted the attention of the global industry and the news media. The WTO ruled that the EU's anti-dumping measures against Chinese-made carbon steel fasteners and fair comparison of export prices violated WTO rules. In the main litigation point of the fastener case, China won the case in both the expert group stage and the appeal stage.

Since joining the WTO in 2001, China’s exports to developed countries have increased dramatically. The trade between China and the EU has developed rapidly in recent years, and the EU has become China's largest export market. However, international trade protection frequently refers to China, and Western countries, especially the European Union and the United States, impose heavy taxes on Chinese fastener products in the name of anti-dumping. Although the anti-dumping case against the EU finally won, but after nearly three years, the domestic fastener industry has been deeply hurt.

As the largest producer and exporter of the global fastener industry, how can China deal with it in the game of international trade discourse right? Will similar anti-dumping come back? Does domestic fastener enterprises practice their internal strength and challenge this long-term Discriminatory legislation and practices for Chinese export companies, big stick fasteners, commonly known as screw nuts, have the reputation of "industrial rice", which is a mechanical basic part, ranging from space shuttles, automobiles and mechanical equipment to small tables and chairs. Have their own figure. The industry is a labor-intensive, capital-intensive and high-tech strategic industry. The domestic fastener industry has been in a rapid development stage in recent years, and has gradually formed independent innovation capabilities. The domestic production and trading companies of this product are nearly 10,000, contributing more than 1 million employment rates.

However, seeing China's fastener industry hunt for huge profits, many developed countries such as Europe and the United States are obviously reluctant to wait and see, and they have raised anti-dumping sticks. The EU and the United States have used WT0 to allow member states to impose punitive tariffs on dumped products. They often point to Chinese companies to impose anti-dumping duties.

The history of disputes over fasteners in international trade found that as early as November 9, 2007, the European Commission decided to initiate anti-dumping investigations on fasteners imported from China. On December 3, 2008, the anti-dumping department of the European Commission officially voted on the punitive tariff imposed by the EU on Chinese-made carbon steel fasteners. The vote originally scheduled for November 26 was not unified due to internal EU comments and protests from China were postponed to "December 3" until December 3. On January 15, 2009, the EU decided to impose a 25% temporary anti-dumping duty on metal wire rods imported from China. On December 3 of the same year, the European Commission decided to impose a formal anti-dumping duty of up to 87% on steel fasteners imported from China with a slight advantage of 14 countries, 12 countries, and 1 country.

The EU's anti-dumping measures have caused China's fastener industry to suffer. In 2008, China exported 2.7 million tons of fasteners, maintaining double-digit growth for five consecutive years. However, in 2009, affected by the punitive tariff of 87% of the EU, the number of fasteners in China was nearly 900,000 tons, which caused the export of the whole industry to drop by 43% year-on-year. The rate has also dropped from the previous 84% ​​to around 70%.

In addition, foreign manufacturers are willing to step up their efforts to seize the Chinese domestic market by dumping. The domestic fastener industry has been greatly impacted and challenged. One-third of the enterprises in the industry are in a state of closure or shutdown, and one-third of enterprises are in a state of loss. One-third of the companies can still maintain meager profits, while losing 400 million euros in foreign exchange earnings each year and losing 800,000 jobs.

In fact, the EU's anti-dumping is only the tip of the iceberg. China's fasteners seem to be increasingly becoming the target of international trade protection attacks, and the crisis is heavy. After the EU, the United States, Mexico, Canada, Russia, South Africa, Colombia, Turkey and other countries have successively made anti-dumping arbitrations or investigations on Chinese fasteners. The number of cases and the wide range of objects involved, the game of the Chinese and foreign fastener industry has become hot.

Announcement of the anti-dumping final ruling on steel screws imported from China, the general tax rate reached 206.00%. On March 26 of the same year, the US International Trade Commission (ITC) made a final ruling on the Chinese anti-dumping case against steel screw. Six members unanimously ruled that imported Chinese products caused substantial damage to the industry in the United States. In view of the US International Trade Commission's final decision on affirmative damage, the US Department of Commerce will issue an anti-dumping tax order on the above-mentioned products exported from China to the United States. Three months later, the United States once again filed anti-dumping and countervailing claims against certain types of standard steel fasteners originating in China and Taiwan, and imposed 66.87% and 205.97% anti-dumping duties.

The impact of China's fastener anti-dumping is far-reaching. On the one hand, the domestic related industries show a phenomenon of under-employment and increased enterprise inventory. On the other hand, domestic industry has suffered losses, resulting in a deterioration in return on investment and cash flow. The development of China's fastener industry is struggling.

From the recruitment to the Chinese side, the Chinese government and the industry expressed strong dissatisfaction and decided to submit the first complaint against the EU on this case. On July 31, 2009, China sued the EU at WT0. The first is the necessary consultation process, but the consultation failed. On October 12 of the same year, China asked the World Trade Organization to set up an expert group to investigate and decide whether the EU violated international trade rules in the case. Brazil, Canada, Chile, Colombia India, Japan, Norway, Taiwan, Thailand, Turkey and the United States participated in the lawsuit as a third party.

China's appeal can be divided into three parts: First, the relevant provisions of the EU's original anti-dumping basic law have violated the provisions of the WT0 anti-dumping agreement on evidence and anti-dumping duties, the GATT (1994) on MFN treatment and transparency on trade management measures. Provisions and provisions of the WT0 Agreement on the strict implementation of treaty obligations. Second, the anti-dumping taxation order issued by the EU on January 26, 2009 was issued in accordance with the relevant provisions of the EU Anti-Dumping Basic Law. It not only violated the above-mentioned WT0 anti-dumping agreement, but also violated its provisions on the minimum support rate of domestic industries and on dumping. The definition of the definition, the definition of domestic industry and industrial damage, and the definition of the causal relationship between dumping and damage, and other core provisions. The third is to ask the expert group to make specific implementation suggestions on how to implement the ruling in the EU at the same time as the ruling.

In response, the WTO Appellate Body issued a ruling report on December 3, 2010, supporting China's all claims on the issue of separate tax rates and some of the claims on fastener anti-dumping measures. On March 25, 2011, the European side filed an appeal. On March 30, the Chinese side appealed separately on the issue of no support from the expert group. On July 15, the WTO Appellate Body finally ruled that the legal provisions of Article 9(5) of the EU Anti-Dumping Basic Regulations on separate tax rates violated the WTO rules. At the same time, the Appellate Body overturned part of the panel's ruling and supported the Chinese position. The WTO Appellate Body stated that the EU’s anti-dumping measures against fasteners originating in China violated WTO rules and that the EU’s anti-dumping tariff calculation law violates the fairness of trade because it treats China as a separate exporter. Think of it, not the business as a separate trader. This is discriminatory in treating China as a non-market economy.

Fasteners counterattack the War Alliance and the United States have always regarded China as a "non-market economy country (NME), do not recognize China's domestic production costs or sales prices. They believe that the formation of China's domestic prices exists government intervention, can not truly reflect market conditions The price of the goods. Therefore, the so-called "substitute country price" is used in calculating the dumping margin, and the result often leads to artificially expanding the dumping margin of Chinese export products.

The WTO Appellate Body stated that the EU has used the wrong method to calculate the damage to the EU in the anti-dumping case. The EU has more than 300 steel or iron fastener manufacturers, but the EU failed to prove most of its fastening. The manufacturer was damaged, and only proved that only 27% of the steel or iron fasteners were damaged, far from being able to take anti-dumping measures. At the same time, the domestic standard parts industry believes that although the output of standard parts in China is currently ranked first in the world, the products exported to the EU are still mainly in the low-end, while the customers of EU fastener manufacturers are mainly automobiles, aviation and so on. An industry with very high product quality requirements. There is more complementary relationship between China and the EU's local products, and there is no such thing as industrial damage.

China’s decision to prosecute the EU’s first case in the WTO has boosted corporate confidence. The victory of this anti-dumping has become a lubricant for the export growth of China's fastener companies, helping to improve the competitive environment of Chinese companies in the international market including the EU, and will also enhance the confidence of WTO members in the WTO rules and the multilateral trading system. This is equivalent to putting a "tightening spell" on the EU, and the once closed EU market door will be reopened.

How does the domestic fastener industry find out the "deep ambush" against China on the grounds of anti-dumping on the grounds of foreign countries? This success can be regarded as a confrontation between China and the international market for fasteners, showing the courage to fight for the right to speak. However, the Chinese and foreign wrestling forces continue. As the world's largest exporter of fasteners, anti-dumping in the future may become the norm in the industry. The Chinese fastener industry will continue to move forward in the “honing” of dumping and anti-dumping.

In 2010, China's fastener industry was supported by domestic and international economic growth. In the first half of the year, the total amount of fasteners in the whole industry exceeded 3 million tons, a year-on-year increase of 40.5%. The strong growth momentum made the whole industry cheer, but calm appearance. Unexpected factors such as EU anti-dumping will continue to coexist, and where is China's fastener industry going, where to go, first of all, to reduce export concentration. It is understood that many fastener companies will vigorously develop domestic sales in the next few years, and strive to ease the pressure of overseas exports through the pull of the domestic market. It is not difficult to see that after the EU anti-dumping, domestic fastener companies are consciously reducing the proportion of exports to the EU, and actively exploring the domestic market and emerging markets. In addition, the country has recently introduced new policies to stimulate domestic demand, and has also developed a large pulling effect on the demand for the field. Therefore, domestic companies cannot put "all eggs in the same basket" and are too dependent on the international market. From the current stage, it may be wise to "both inside and outside."

Second, the industrial structure has been upgraded. Once upon a time, "cloning big countries" became synonymous with China. The low-end route has made China's fasteners competitive. China's fastener enterprises must continue to develop, and structural adjustment and independent innovation cannot be delayed. The fastener production business seeks diversified development, achieving a transition from low added value to high added value, from standard parts to non-standard shaped parts, and increasing the high-end high-strength tightening of automotive fasteners and aviation fasteners. Development of firmware. This is also the key to improving the core competitiveness of the company. At present, many fastener enterprises in China have entered the special industry and have made some gains.

Finally, if Chinese fastener companies want to continue to develop in the crisis, they should take the high-end route. Since China's fastener industry is a labor-intensive industry, the added value of export products is low. If the technical content is not improved, there may be more trade frictions in the future. Domestic enterprises should make breakthroughs in technology in the future. At present, high-speed rail, aviation, nuclear power and other special fields have strong demand for fasteners, and high-end fasteners are facing huge business opportunities. This is an opportunity for China's fasteners to transform economic growth and develop to high-end routes. I draw fasteners battle history review Since 2007, China's fastener industry has suffered from trade remedy investigations in several countries or regions: the United States has imposed a final ruling on anti-dumping of China's dental floss products; Canada has made a countervailing review final ruling It is decided to continue to implement countervailing measures for China's carbon steel fasteners; Mexico conducts anti-dumping investigations on China's fasteners; the EU imposes an 85% anti-dumping duty on China's fasteners; Russia has initiated investigations into safeguard measures for China's export fasteners.

Among them, the EU has the greatest impact on the 87% anti-dumping duties imposed on fasteners in China. According to statistics, in September 2009, the export value of fastener products in China decreased by 47.7% year-on-year. In Jiaxing City, Zhejiang Province, where the fasteners are mainly produced, the export of fastener products decreased by more than 50% year-on-year. In October 2009, the Chinese government sent a letter to the WTO Permanent Representative to the WTO through the Permanent Representative of the WTO to the WTO, and requested the WTO to file a consultation request under the WTO dispute settlement mechanism on the EU's anti-dumping measures against Chinese fasteners, and officially launched the WTO dispute. Solution.

In August 2010, the WTO issued a report on Chinese enterprises, ruling that EU practices violated the relevant provisions of the WTO on MFN and anti-dumping agreements. On December 3, a 394-page ruling report was issued, condemning the EU for imposing unfair anti-dumping duties on fasteners imported from China.

On July 15, 2011, the four-year fastener war between China and Europe finally came to a conclusion, and it was determined that the EU’s anti-dumping measures against carbon steel fasteners imported from China violated the WTO rules. This is also the victory of the WTO's first case against the EU since China's accession to the WTO.

Electromagnetic Flow Meters

Electromagnetic Flow Meters,Electromagnetic Flow Meter,Electromagnetic Water Flow Meter,Intelligent Flow Meter

Jingsu Huaerwei Science and Technology Group Co.,Ltd , https://www.hewflowmeter.com