Anti-Dumping on and from China

The past years saw an increased casesof anti-dumping on China mostly from thedeveloped countries, some from developingcountries. But Pakistan, a friendly neighbor toChina, recently adds up to that list of ranks foran anti-dumping investigation on China. It isthe national interests that count most, after all.It gives out a signal.that anti-dumping wouldbe a frequent tool to defend or to attack.Evidences show China is a target for this traderemedy, but is also targeting others.

National Intereststhat Count Most

Pakistan, China's long time friendand strategic partner in the south-westAsia, could also start a new investigationto launch an anti-dumping case againstpolyester fiber imports from Chinaas part of its efforts to curb low-priceimport that is threatening to damage itsown man-made fiber industry.

According to Pakistan Customs,around 8,000 tons PSF were importedfrom China into Pakistan during themonth of May 2007, and this monthlyrise in PSF import worded the domesticpolyester staple fiber industry which isweakened to result in a running belowinstalled capacity, and is now preparingan anti dumping case against China andwill be filed shortly.

Apart from keeping China as apotential target, Pakistan has alreadyintensified anti-dumping duties onPolyester Staple Fiber (PSF) importsfrom these Asian big producers such asSouth Korea, Thailand and Indonesia.

In comparison with provisionalduties decided early this year, NationalTariff Commission (NTC) of Pakistanhas actually raised most of additionaltariffs in its final determination toincreases range from 0.05% to 1.93% (seethe table below).

The final determination from NTCcame as a good outcome to ET.lndorarnaSynthetics of Indonenia because the dutywas maintained at zero, but tariffs onRT.Polysindo Eka Perkasa and all othershave been increased by 1.68% from3.36% to 5.04%.

Korea's fiber producer Huvis hashowever been exempted from additionalduty on polyester fibers that has beenreduced to zero percent from 2.09percent...

Tariffs on Thai Polyester andKangwal Polyester of Thailand havebeen reduced by a mere 0.01%, from4.35% to 4.34% for the former, andfrom 8.33% to 8.32% for the latterrespectively.

Pakistan tariffs on PSF's import is6.5% basically, but additionaltariffs will be somewhere between2.14% to 10.26% on the basicimport tariffs. Full tariffs willtherefore range from 8.64% to16.76%, a very high level forPakistani processors of polyesterstaple fibers in a country alreadydominated by cotton use.

China Bears theBrunt

With the textile agreementswith EU and USA comingto termination respectivelythis year and next year, there's for a long time been a loud cry forextending or further imposing quotason China's textile imports into theirmarkets. But what China really worriesis the fact that when the safeguards

measures are expired, the other tradedefensive instruments must be takenby these countries as a clad to protecttheir domestic manufacturers. But forChina, these are not an armor for beingdefensive to resist, but a sword for beingaggressive to attack.

One of the most potential attackinginstruments is anti-dumping, which hasalready been filed against China manya time in the past and will be seen as afrequent visitor to China.

In 2005, foreign countries andregions launched 92 trade remedy lawsuitcases on China. Out of the totality, therewere 49 anti-dumping cases, taking up53.3% of the total on-China cases.

In 2006, there were 18 countriesaltogether to institute 63 anti-dumpinginvestigations on China, a historicalrecord high.

China Bears No Blunt

China's sword is never blunt. Amidan increasing anti-dumping cases on itswhat is alleged as "dumping-priced"exports, China has also been adoptingtrade remedies to withstand foreignflooding of dumping goods into its ownmarket. As a member of WTO, China didit right to protect its own interests whenthe domestic industry was damaged dueto lower-price imports.

Up to the end of June in 2006,China staged 139 anti-dumping casesagainst foreign imports, concerning7,300 million dollars and covering.43product categories. This trade defensiveinstrument is also further sharpenedwith the important note delivered at therecent international seminar on the 10thanniversary of China's anti-dumpinglegislation and practice which was heldby Chinese Ministry of Commerce(MOFCOM) in Beijing on June 25-26,2007.

China started to promulgate itsanti-dumping rules and regulations[[Anti-Dumping and CountervailingProvisions of People's Republic ofChina]] in March, 1997. With this, Chinainitiated its first anti-dumping case onthe imported news paper. "Over thepast 10 years, China has establishedanti-dumping law system and theinvestigation department. We need tohandle well the relationship betweenencouraging import enlargement andmaintaining safety of domestic industry.To reach that goal, we must abide byWTO's rules and domestic relevantlaws and regulations to avoid improperpractices in implementing anti-dumpinginvestigation and determination."Said Gao Hucheng, Vice Minister ofMOFCOM.

While many people believe theanti-dumping will be the forefrontweapon of all the trade remedieson China if this textile giantcontinues to sell its textiles andapparels at a "predatory price".But a sword is sharpened on bothedges, if foreign imports floodinto this huge market at the sameprice level as what it is in thequoted saying, China would dosomething to "show the essence of traderemedy to resist the unfair competitionand maintain fair trade order." so saidby the vice Minister.