China fasteners, parts companies face a new round of EU sanctions

The anti-dumping investigations of the European Union recently involved a number of auto parts manufacturers that exported to the European Union. In order to meet the demand of European OEMs, Chinese suppliers have invested heavily in R&D in the early stages. The products have been widely recognized and used by companies such as Mercedes, BMW, Volkswagen, Audi, etc. Once the “anti-dumping” is established, the initial investment will be wasted.

As early as 2007, China suffered from anti-dumping measures against fasteners from the European Union. In November 2008, the European Union, the main market for the export of fastener products, launched an anti-dumping investigation against China, resulting in an annual loss of 400 million euros in foreign exchange earnings and the loss of 800,000 jobs. On January 31, 2009, the EU imposed a formal anti-dumping tax of up to 87% on anti-dumping measures against fasteners. On March 26 of the same year, the US ruled that the fastener dumping margin in China was 55.16% to 206%.

Industry insiders believe that the EU's anti-dumping sanctions on China's auto parts industry are not unilateral measures, but it is a confrontation between China's auto parts industry and the European Union when it competes for the international market. It also tests whether Chinese auto parts companies are Dare to take the initiative and fight for the right to speak. These are of great significance to the normal production and operation of China's spare parts industry and the restoration of a fair trade order. It is conducive to creating a fair market competition mechanism for enterprises and enabling them to expand the market share of products to meet the market demand on the basis of continuously improving the level of product technology and quality, thereby improving the international competitiveness of China's spare parts industry.

Business professionals believe that overall foreign trade protectionism is strong, trade remedy has a long history, and so far a mature system has been developed and reflected in the tax clauses. The two parties imposed anti-dumping duty on the corresponding product varieties, Due to different structures, the EU’s minimum anti-dumping duties imposed on me are approaching the Chinese government's maximum taxation rate. Despite China's inadequate response to foreign anti-dumping investigations, the courage to compete for the right to speak out still gives domestic companies a glorious light.