"China has made considerable progress in protecting its domestic
industries through antidumping, anti-subsidy and safeguard
mechanisms invoked under World Trade Organization (WTO) rules and
in accordance with the laws of the nation," said Wang Qinhua.
Wang is president of the Bureau for the Investigation of Unfair
Trading, established under the auspices of the State Economic
and Trade Commission. Speaking at a recent Anti-dumping
Symposium in Beijing, she delivered a key report on China's
recourse to anti-dumping, anti-subsidy and safeguard mechanisms
during 2002. She also gave an indication of anticipated levels of
activity for 2003.
Progress has been achieved as follows:
A Sound Legal Footing
Following WTO entry, China has introduced new measures to bring in
anti-dumping, anti-subsidy and safeguard mechanisms. The measures
contained in these three complementary procedures have served to
complete the necessary strengthening of trade law and provide a
sound legal footing for the legitimate protection of domestic
industry from unfair competition from abroad.
Investigation and Arbitration Cases
The number of anti-dumping cases brought forward for investigation
has increased since China's WTO entry.
In
2002, China investigated ten antidumping cases (including one under
review). China's first antidumping investigation was launched on
November 10, 1997 into imported art paper. Since then a total of 22
cases have been brought. So far six cases have gone to arbitration
and seen financial penalties imposed. Two cases were set aside with
"no harm" conclusions reached. In a further three cases, the
government has taken temporary antidumping measures. Investigation
is still ongoing in the 10 or so cases remaining.
The State Economic and Trade Commission carries out its
investigations into harmful trading practices based on principles
of openness, fair play, justice and arbitration. The legal rights
of both sides are effectively protected. Due consideration is also
given to the interests of enterprises, both upstream and downstream
and of the public.
The anti-dumping arbitration decision reached in the art paper case
protected the legal rights of the domestic industry and put a stop
to the dumping of imported products in China at artificially low
prices. Already the price of domestic products is recovering and
both sales revenues and pre-tax profits can be seen to be
increasing, all bringing significant economic benefits.
In
the cases of Polyvinyl Benzene and Lysine Salt, "no harm"
conclusions upheld the legal rights of the respondents. This serves
to demonstrate the even-handed approach well founded on legitimate
procedures, which is being operated by the Chinese government.
Steel Industry Safeguarded
Eleven categories of imported steel products were scrutinized in
accordance with WTO rules and in compliance with China's safeguard
measures. After a six-month investigation, the State Economic and
Trade Commission arbitrated that domestic industries were indeed
the victims of harmful trade practices in five main product ranges.
These were hot-rolled thin plate, thin plate, painted plate,
non-grain-orientated silicon steel and cold-rolled thin stainless
sheet. The Commission found that increased imports of these
particular products had been directly damaging the domestic
industries. Thus from December 20, 2002 the Chinese government
adopted safeguard measures that imposed quota restrictions on
imports in the five steel categories for a period of three years.
This first safeguard measure to be taken against steel imports will
play a key role in supporting the restructuring of the domestic
steel industry and in circumventing industrial action.
Early Warning Systems
The establishment of Early Warning Systems to expose harmful trade
practices has clearly made good progress. This has been
particularly the case in the auto industry where it has been viewed
as a breakthrough.
On
the basis of the success of the auto industry experience, the
Bureau for the Investigation of Unfair Trading got together in June
2002 with China Nitrogenous Fertilizer, China Phosphorus Fertilizer
and the China Iron and Steel Association. They have jointly
established an Early Warning System for the fertilizer and steel
industries.
The establishment and operation of Early Warning Systems is doing
much to help speed up industrial restructuring and development.
(China.org.cn by Tang Fuchun January 14, 2003)