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Home » Notes & News » What Can We Learn from the Sino-Europe Fastener Anti-dumping War? (Part 1)

What Can We Learn from the Sino-Europe Fastener Anti-dumping War? (Part 1)

On June 28, 2010, Ministry of Commerce of the Peoples’ Republic of China set a final duty on carbon steel fasteners imported from the EU ranging from 6.1% to 26%, which will be effective on June 29 and last for five years.

It has been a year and a half since the Chinese fastener companies submitted the anti-dumping petition in December 2008. It is the first time for the Chinese fastener companies to actively react to the EU’s trade protectionism. What do the Chinese fastener companies think of this dumping penalty? What can Chinese fastener companies learn from the Sino-Europe fastener anti-dumping war?

Response from home companies

Wang Zhengzhong, sales manager of Changshu City Standard Parts Factory told CFI ( reporter, “I think the anti-dumping duty will not affect the EU companies. On the one hand, the duty of 26 percent pales in comparison to the high tariff of 87 percent imposed on certain Chinese fasteners by the European Commission. On the other hand, Most of the EU-made fasteners are used in automotive, aerospace and other top-end industries. It is still difficult for the domestic companies to produce the like products.”

In fact, the debt crisis in EU drives the sharp depreciation of the Euro. It is learned that the Euro/RMB exchange rate has depreciated around 20% since last December. In other words, the anti-dumping duty of 26% has less effect on the EU companies.

On the contrary, Huang Wennong, general manager of Shanghai Biaowu High-Tensile Fasteners Co., Ltd held a positive view on this final duty. “Most of our exports are low-end or middle-end fasteners, some of which are no longer produced by some European countries. I don’t think it exists dumping. This final ruling is not only an answer to the Chinese fastener exporters, but also a protest against EU’s unfair practices.” He added, “Although the result does not have great impact on fastener exporters, it has certain advantages for some of the top-end fastener manufacturers in China. Since the rapid development of China auto industry and the frequent foreign anti-dumping cases in 2008, some fastener exporters have turned to the domestic markets where they can enjoy ample space for development. Therefore, the antidumping duties to some extend help drive the upgrade of China fastener industry,” indicated Huang.

Xu Deren, deputy president and secretary of Zhejiang Fastener Industry Association also said, “Currently, the products imported from the EU are the value-added special parts, which are difficult to be produced by many domestic companies. Although the anti-dumping duty increases the purchasing costs of importers, it greatly encourages the domestic companies to implement technological innovation. In fact, it is time for the domestic fastener companies to upgrade themselves.”

CFI reporter also interviewed Ms. Yang who now works in the sales department of Arnold Fasteners (Shenyang) Co., Ltd, an independent subsidiary of Wurth Group. “Most of our products are manufactured in China, while some are imported from Germany. If our customers require buying the imported fasteners from Germany, the anti-dumping will affect us, so we will adjust our quotations accordingly,” noted Ms. Wang.

That China’s slapping anti-dumping duty on EU fasteners is considered to be a fight against the danger everywhere triggered by the foreign countries with a dumping reason. To cope with the possible anti-dumping cases in the future, what measures the Chinese fastener companies will take? To be continued…