It is reported that the so-called "administrative review" of the US Department of Commerce is a "sunset review" to re-evaluate whether the enterprise has dumping behavior, usually for a period of 5 years. As a result, some people regard the "sunset review" as a good time for companies to get rid of the burden of "dumpers".
However, in the opinion of the industry, although the international economic situation has picked up, the momentum of trade protectionism is still strong. The "Sunset Review" is likely to maintain the original judgment, and the possibility of an enterprise taking the opportunity to overturn the battle is not very large, so it should be treated with ordinary heart, and actively defend, appeal and defend rights. At the same time, companies are overcoming their inertia and enhancing their international competitiveness with independent intellectual property rights as the fist, and the requirements for further structural upgrading are becoming more urgent.
Cope with
If the US Department of Commerce's "Sunset Review" maintains the original judgment, the furniture companies concerned may have to pay 150% of the tariff. This is undoubtedly a burden-bearing climb for Chinese furniture companies that are "small profits but quick turnover" and are facing rising costs.
"With the development trend of increasing quantity and quality of 'Made in China', the United States, which has not yet completely shaken off the shadow of the recession, may not be soft in the 'Sunset Review'." Chen Huanzhong, a partner of Universal Law Firm, said in an interview. The wind of trade protectionism will not be weakened by this, and the hope of Chinese enterprises to "turn over" is slim.
In an interview, Zhang Jingxian, deputy secretary-general of the Floor Circulation Committee of the China Timber Association, also believed that the phantom of trade protectionism has not gone far. The "sunset review" may not bring about some subversive changes.
Mr. Hu, a state-owned furniture export company in Fujian, bluntly stated that it was forced by overseas markets to initiate various trade protection measures in the name of anti-dumping. For the sake of insurance, companies had to bypass the entire set of bedroom furniture products that were most likely to "thunder" and instead Export small items. But Manager Hu also admitted that due to the rigid demand, "Made in China" furniture is not worried about sales.
No worries about sales, no worries about profits
Developed countries represented by the United States are constantly threatening prices with "Made in China". At the end of last year, the US Department of Commerce also preliminarily ruled that anti-dumping and trace countervailing duties of 194% to 240% should be imposed on China's composite wood flooring. Today, corporate profits are being pushed into danger.
It is understood that under the leadership of the China Furniture Industry Association, some coastal furniture companies have raised more than 2 million US dollars to invest in early lobbying to prepare for active response. Chen Huanzhong believes that even if there is no turning point in the "sunset review", companies should treat trade disputes with normal heart. At present, many of the WTO's final rulings are detrimental to China. Therefore, it is the most feasible way for enterprises to understand and familiarize themselves with the "rules of the game", find out the routines, and treat them as usual.
Overcome inertia
Chen Huanzhong believes that the reason why enterprises should maintain their normal mentality is related to the transformation and upgrading of the Chinese furniture industry and even "Made in China". He pointed out that the reason why “Made in China†represented by furniture is cheap and good, carries heavy resource costs and low labor costs behind it. "Coincidentally, overseas markets are forcing Chinese industries to change their concepts and adjust their economic structure in the name of anti-dumping to achieve sustainable development," he said.
Chen Huanzhong believes that export to domestic sales and enriching the domestic market is a good choice. "Rather than being squeezed by some fixed markets for development space, it is better to broaden sales channels and achieve diversified development."
Manager Hu also showed the company's thinking to switch to Europe and even some emerging markets. Other industry insiders pointed out that the export market of Chinese furniture companies is too single, and the ability to resist risks is weak. In order to meet the needs of long-term development, China's furniture companies should optimize the export market structure as soon as possible, actively explore diversified overseas markets, and increase exports to countries and regions such as the European Union and Southeast Asia.
Such a call is not new, but the export dilemma faced by the Chinese furniture industry is still a "big boss". "Due to the solidification of channels, it is not as simple as imagined." Zhang Jingxian said that the road to reform is not smooth, and improving the level of international competitiveness with independent innovation as the fist is the key to solving the problem. Indeed, many furniture exporters are not having a good time. Customer price reduction is one of them. The limited level of competitiveness is also a key factor.
So why is it so difficult for innovative calls to become effective practices? One of the reasons is the inertia of the enterprise itself. The inertia of Chinese furniture companies' "bringing ideas" has not disappeared. In the increasingly fierce market economy environment, companies really need to change their innovative ideas and mentality.
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