Trade frictions in the hottest chemical industry a

2022-08-18
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Chemical industry: trade frictions and gunpowder smoke rise everywhere

10 years ago, China officially joined the world trade organization. At that time, China's foreign trade volume was about 510billion US dollars, accounting for 4.4% of the total world trade volume. In the following 10 years, China's exports and imports increased at an average annual rate of 18.3% and 17.6% respectively. By the end of 2010, the scale of China's import and export of goods trade had increased to nearly $3trillion, an increase of 4.8 times over the beginning of China's accession to the WTO, and its share in global import and export trade had increased by 5.5%. China has emerged on the world stage as a major country in Global trade in goods

however, in the same 10 years, the number of foreign trade disputes in China has also increased rapidly. According to the data of the Ministry of Commerce, since joining the WTO, China has suffered more than 690 foreign trade remedy investigations, involving about $40billion. Especially in the field of chemical products with low processing degree, low price and labor-intensive, anti-dumping, countervailing, green safety and other trade barriers have become important obstacles for China's chemical enterprises to "go global". Last year alone, the Ministry of Commerce listed 19 chemical trade disputes on record

at the white paper press conference of China's foreign trade last December, lichenggang, director of the Department of treaty and law of the Ministry of Commerce, pointed out that trade frictions related to China are an inevitable phenomenon in the process of sound and rapid development of China's trade, and will become a normal state with the development of our trade in the medium and long term. We should oppose trade protectionism externally and guide our company's customers internally to have a wide understanding of the international market, be familiar with the rules and apply the rules, so as to effectively avoid and deal with trade frictions. A few days after the press conference, Hebei XingMao Tire Co., Ltd., a domestic tire manufacturer, finally received a successful judgment after four years of "double anti" litigation. The persistent litigation path finally won the legal recognition that the "double anti" investigation of the U.S. Department of Commerce was illegal, which greatly boosted the confidence of domestic enterprises to deal with trade frictions

facing the complex international market and trade environment, if domestic chemical enterprises want to make a difference in a broader world, trade friction is a necessary obstacle. In this thorny road, Chinese enterprises have just started

the case of China's export of tires to the United States is regarded as the first case of Sino US trade friction in the Obama era

number of cases: the chemical industry accounts for 30%

in late December 2011, a judgment from the U.S. Federal Circuit Court of appeals pushed Hebei XingMao Tire Co., Ltd., a less famous tire manufacturer, to the forefront of public opinion in the chemical industry. The judgment clearly shows that under the condition that China is regarded as a non market economy country, the U.S. Department of commerce can only apply the anti-dumping law to Chinese enterprises such as Hebei Xingmao, not the Countervailing Law. This judgment shook the foundation of the US countervailing investigation for the first time. In late winter, the relevant reports of various media were boiling, and many chemical enterprises involved in export trade also saw warm hope

however, Li Yu, the lawyer representing the case from Winston law firm in the United States, remained calm while excited. He told that this victory cannot cover up the fact that China has been the country that has suffered the most anti-dumping and countervailing investigations in the world for many years in a row. Behind the victory, more Chinese enterprises are struggling to resist trade frictions, and the chemical industry is full of smoke

lawyer Li Yu's concern is not unreasonable. According to the preliminary statistics of the public information of the Ministry of Commerce, in 2011, China encountered a total of 67 trade surveys on Chinese products or enterprises from 16 countries around the world, an increase but not decrease compared with 64 in 2010. Among them, the field of energy and chemical industry is the hardest hit area of trade friction, with a total of 19 trade disputes, accounting for 30% of the total number of trade surveys in the whole year, with an average of 1.58 cases per month, and there is almost no month to stop. The number and density are amazing

less than two days before the new year, on December 29th, 2011, a message came from the Ministry of commerce that the U.S. wind tower alliance applied to the U.S. Department of Commerce and the U.S. International Trade Commission to launch a joint anti-dumping and countervailing investigation on applied wind tower products exported from China and Vietnam. According to the U.S. investigation procedures, the U.S. Department of commerce is expected to decide whether to accept the application before January 18, 2012. China's new energy equipment may hit a wall again

enterprise response: brave people win when they meet on a narrow road

"Enterprises do not want to encounter friction and disputes in export trade, but if they do, there are three ways in front of enterprises: first, spend time, energy and money to respond to the lawsuit, but the victory or defeat is unpredictable; second, accept the punishment of foreign high tariffs; the last way is to withdraw from foreign markets. Fight or not? In international trade, which is a battlefield without gunpowder smoke, is it a sword or retreat? I think we should fight resolutely. If you don't fight, you will never have a chance to win. " The speaker was Yu Zhaoling, deputy general manager of Hebei Xingmao tire company, who just won the victory

from June, 2007, the American tire manufacturer filed a complaint with the U.S. Department of Commerce, requesting a "double anti" investigation of off-road tires from China, to December, 2011, the Chinese enterprise won the lawsuit, and Yu Zhaoling's work expanded from the company's special responsibility for finance to responding to the investigation, "in the past four years, I have also a little knowledge of many laws." She said

"don't fight for steamed bread, fight for tone. We value the fairness spirit conveyed by this judgment. Only by fighting them to the end can we maximize the protection of our legitimate interests, otherwise we can only retreat again." Yu Zhaoling told, "the negative attitude of some enterprises involved in the case led the investigation and acceptance institution of the importing country to determine the dumping margin only based on the data it collected, so as to make a ruling against Chinese enterprises. Therefore, the interests of the whole industry may be harmed if the enterprises are not active."

her words actually preceded: in May 2010, India launched an anti-dumping investigation against our sewing machine needles. When the enterprises involved in the case did not respond to the lawsuit, the Ministry of Commerce, industry and Commerce of India made a final announcement and decided to impose anti-dumping duties of more than 1700 US dollars/box on our export enterprises (the average export price of our export is only 420 US dollars/box). Such a high anti-dumping duty has a significant effect on the protection of domestic industries in India, thus stimulating other industries to follow suit to a certain extent. Therefore, shortly after the case occurred, India successively launched anti-dumping investigations on eight products, including nitroaniline, cold-rolled stainless steel plates, soda ash, morpholine, and rubber antioxidant

however, it was found in the interview that many of the industries surveyed in the middle of 2011 were small and medium-sized enterprises. When entering 26, many enterprises chose to avoid trade friction. They believed that once responding to the lawsuit, enterprises should submit a large number of responding materials and provide relevant evidence, including the articles of association, the company's organizational chart, production, sales (including domestic and export sales), export volume, water and electricity consumption, etc. It is easy to corrode in the outdoor environment. In addition, the huge litigation cost is also a stumbling block for enterprises to deal with trade disputes

industry experts unanimously disagree with such an attitude. Xuwenying, Deputy Secretary General of the China Rubber Industry Association to promote the transformation of enterprises to service-oriented enterprises, said that through the victory of Xingmao tire company, it can be seen that building confidence and actively dealing with it is the first step to win the lawsuit. In the trade frictions and disputes initiated abroad, many so-called trade remedy investigations do not conform to the WTO rules or the relevant laws and regulations of the initiating country. Therefore, when encountering unfair treatment, Chinese enterprises must dare to fight hard and safeguard their legitimate rights and interests. She said that in this process, the association and the government will also shout for enterprises and give them some support, but the premise is that enterprises should take the initiative to respond to the lawsuit

fan Rende, President of China Rubber Industry Association, believes that with the rise of China's economy and the resulting change in the global trade pattern, it will be normal for China to become the protagonist of trade frictions. This industry and enterprises need to be fully prepared, which can not be solved by avoiding. In addition to actively responding to the outside world, enterprises should also practice their "internal skills" from two aspects:

first, strengthen the early warning and monitoring of friction, and establish and improve the early warning mechanism and rapid response mechanism of trade friction as soon as possible. Experience shows that the most effective way to avoid trade friction is to give early warning. When the market has reacted to a certain type of export products, we should pay attention to it and adopt adjustment strategies as soon as possible

second, accelerating the pace of enterprise transformation and product upgrading, and constantly optimizing the product structure and domestic and foreign sales structure is the fundamental strategy to deal with trade disputes. Only by increasing the added value of products, and then raising the price of products, can we avoid being imposed anti-dumping and countervailing sanctions and earn rich profits at the same time. At the same time, only by accelerating the transformation and upgrading of products can they stand the test of cruel competition in the international market, the test of economic policies and changes in the business environment, and make enterprises in an invincible position in the process of entering the international market

recently, Jiangxi LDK Solar Co., Ltd. is facing the dual pressure of the European debt crisis and the "double anti" investigation in the United States to expand its overseas market

the total value of China's foreign trade imports and exports (January to November 2, 2011)

trade environment: disputes show new characteristics

2011 is the 10th year of China's entry into the WTO. In the past 10 years, domestic enterprises have integrated into the wave of globalization in the opening up and become familiar with the international rules of the game in the competition. However, anti-dumping, anti-monopoly, countervailing... The number of "foreign lawsuits" has not decreased, but has taken on new characteristics in the year after year

first of all, the initiator of trade surveys has shifted from developed countries to developing countries. According to statistics, of the 67 trade frictions that occurred last year, 33 were initiated by developing countries, accounting for almost half of the country. Of the 19 cases in the field of chemical energy, 10 were from developing countries, accounting for 52% of the total. Among them, there are 6 cases initiated by India, 1 case initiated by Pakistan, 2 cases initiated by Brazil and 1 case initiated by Thailand

in addition to the list, on June 28, 2011, Argentine industry minister Giorgio Giorgio publicly suggested that Mercosur countries (MERCOSUR) establish collective foreign trade barriers to restrict the import of Chinese products. Previously, the Argentine government also proposed to establish a "United Front" for foreign trade with Brazil to jointly resist the entry of Chinese products into the South American market, but the Brazilian government did not respond. However, the Brazilian government has said that in the face of the weakening dollar, it is necessary to take more actions to protect its industry

Bai Ming, a researcher at the Research Institute of the Ministry of Commerce, said that the recent increase in trade relief measures for developing countries to China is due to, first, the sluggish demand in the European and American markets after the financial crisis and the unlikely short-term recovery. Chinese enterprises have adopted market diversification strategies, and many products have been exported to emerging economies, making their domestic industries feel more competitive pressure; Second, the trade between China and developed countries shows more complementary characteristics, while the trade with developing countries shows more competitive factors due to the similar degree of economic development. For example, both China and India

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