Three Chinese enterprises are charging the US Department of Commerce for
imposing dumping duties on painting canvas, imported from China.
As one of the victims of the US dumping ruling, Xu Guangliang, general manger
of Zhejiang-based Kangda Import and Export Company has chosen legal means as his
weapon to deal with the charges.
Working with another two Chinese canvas manufacturers, his company has
recruited lawyers from both China and the US to defeat the accusation.
He said it is the only course of action he could take to keep dozens of
Chinese enterprises in the US market.
¡°As high as 600,000 US dollars for
legal fees is not a small amount for a company like mine, but if we don't
respond, even greater losses will be incurred once such charges are proven.¡±
The US Department of Commerce announced its decision a week ago to initiate
an antidumping investigation on imports of certain types of canvas from China,
aiming to protect its ailing domestic market. It also intends to raise tariffs
from the current 6 percent up to 200 percent.
So far, there are thirteen Chinese canvas manufacturers exporting products to
the US, and information from China's Ministry of Commerce shows China's exports
only account for a quarter of a percent in US domestic shares.
The industry association believes protectionism is the driving force behind
the restriction.
Secretary General of China Chamber of Commerce for Import and Export of
Textiles, Wang Yu said the decision will not help reduce the US trade deficit,
and that it will make both enterprises in China and customers in the US suffer.
He warned that once such high tariffs were imposed, the US investment climate
would be greatly undermined.
¡°Since the US uses both anti-dumping and safeguard measures to restrict the
export of textile products from China, other countries are likely to follow
suit. Therefore, China will face more difficulties.¡±
A report by the World Trade Organization indicates that China has ranked
second among global dumping investigations, and by the end of last year, there
were over 600 dumping cases targeting China. Among them, 25 kinds of products
have been slapped with high tariffs.
Insiders say in the wake of increasing bills against low-cost China-made
products, Chinese enterprises may face a harder time, and only when they team up
to fight against charges, can they escape the hot water.