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  • Yangzhou Jiangdu Chenguang Special Equipment Factory

  •  [Jiangsu,Australia]
  • Business Type:Manufacturer
  • Main Mark: Africa , Americas , Asia , Caribbean , East Europe , Europe , Middle East , North Europe , Oceania , Other Markets , West Europe , Worldwide
  • Exporter:81% - 90%
  • Certs:FDA, REACH, RoHS, Test Report, ISO9001, CE
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Yangzhou Jiangdu Chenguang Special Equipment Factory

Home > Industry Information > Breakthrough of Anti-Dumping In Fiberglass Industry
Industry Information

Breakthrough of Anti-Dumping In Fiberglass Industry

2018-07-06

On September 16, the European Commission voted on a punitive tariff of 43.6% on Chinese imports of Fiberglass Roving and chopped yarn products. This was approved by the European Fiberglass Producers Association on December 17 last year. The EU official announced that it will initiate the preliminary results of the anti-dumping investigation against China's export of filament fiberglass products. This is also the third round of trade wars against glass fiber industry in China after Turkey and India.

As the world's number one glass fiber industry in China, where to go, how to deal with the waves of foreign industry predators set off a wave of waves, once proud of the pace of development and total volume of China's fiberglass industry how to stand up to the forefront, wind volume The red flag is not wet and it is thought-provoking! The author believes that after the company has made pains, it may wish to do some reflections from the following points.

First, learn the rules of the game, four-body linkage, and actively respond

The results of the preliminary ruling have passed the legal process, and all disputes and questions have settled. From September 16 onwards, the importation of the products involved in the EU plus the original import tariff of 7%, together with the import tariff of up to 50.6%, has become an iron fact. The final ruling is expected in March next year, leaving only the time issue. Businesses do not have to be lucky, but they can't sit still. They should respond positively.

For out-of-pocket sales, the WTO has a complete and mature dispute settlement mechanism. Although China made some concessions when it joined the WTO, more rules are fair, and both parties have restrictions. After the preliminary results came out, the temporary tariffs imposed were six months. Before the final ruling, the Ministry of Commerce, industry associations, and enterprises could also use multiple mediations to play the role of the “four-body linkage” coping mechanism, that is, the Ministry of Commerce and local commerce. Competent authorities, industry associations, and enterprises will work together in a joint effort.

In addition to the Ministry of Commerce negotiating pressure with the other side through diplomatic channels, the company is its own savior, to overcome the wait and see, give up or fear of difficulties, high-level leaders attach importance to organize the team, learn relevant legal rules, hire experienced law firms, and compose work Team, calmly analyze, formulate strategies, calmly deal with. The determination of the products involved, the competitive position of the market, the calculation of the dumping margin, the counterclaim against the other party, and the filling in of the questionnaires are all highly technical tasks. There are many articles that can be done. Doing or not, doing it generically and professionally, the results may be very different. Different tax rates for different responding companies announced by India and the European Union are the lowest 0 and the highest 40%. The difference is obvious.

Second, to adjust the product structure and improve the company's overall competitiveness

Looking at the four rounds of anti-dumping of glass fiber in the past two years from the perspective of the products involved, we will find that glass roving, chopped yarn and Chopped Strand Mat products are the main anti-dumping products, except for the EU’s re-initiated glassing campaign in May this year. In addition to anti-dumping investigations of fiber mesh products, the other three were almost all directed at fiberglass roving products. In 2009, the output of glass fiber in China was 2.05 million tons, although it was slightly lower than the highest output of 2.11 million tons in 2008, it still remained the highest in the world and the direct roving production was more than half. China has become a truly big glass fiber country.

However, China is by no means a strong fiberglass country. In addition to the major roving exports, the export of glass fiber deep processing products is rampant. Due to the disorderly expansion of production capacity, since 2007, the price of fiber rovings has been declining all the time, the competition has become increasingly intense, and price wars have become increasingly fierce. China’s glass fiber has become a public opinion among Western glass fiber manufacturers and it is also a matter of reason. The price fell for each other, and the group attacked it.

The irrational industrial structure has become the main problem of the national industry. It is imminent to adjust the structure and promote growth. The fiberglass industry is no exception. It emphasizes the application of product research and development, improves the level of industrial equipment, reduces redundant construction, and improves the overall fiberglass industry level and comprehensive competition. Force, perhaps, in the face of * Lin Bing, our shield will be stronger, and opponents will also weigh the weight of the hand *.

Third, promote the global industrial layout, accelerate the construction of overseas bases and the pace of mergers and acquisitions

The intensification of anti-dumping has also sounded the alarm for the global regional layout of China's glass fiber industry. As early as ten years ago, the world’s three giants of glass fiber, the United States, Owens Corning, PPG, and Saint-Gobain in France have made strategic investment in the world. Three years ago, Saint-Gobain's acquisition of the Chinese building materials industry was just crazy, and a competitive national brand was almost wiped out. The same drama played by American soybeans squeezing soybeans in Northeast China is exactly the same.

Our glass fiber industry will retreat if we do not advance. Defense will mean failure, effective offensive ability will stand firm on the heels, and a prepared strategic offense will be able to fight without a fight. We have come one step ahead of schedule. We have not been late. We have only the last moment and the last chance. In the industry, China Glass and Taishan have invested in India and the Middle East to set up branches and overseas branches. Many companies also have plans for industry consolidation and overseas mergers and acquisitions. Although our layout is fragmented and has not formed a scale, it has come out valuable. One step. We can only walk with ambition and dance with the wolf so that we can truly have our own market stage.

Fourth, pay attention to the domestic market and reduce market risk

Made in China is the world's attention. China's exports are the world's attention. Similarly, China's huge market is also attracting attention from Western industries. The accomplishments of the reform and opening up in the past 30 years and the export road have contributed to it. Overseas markets have released China's powerful labor resources and have made China a big manufacturing country and a big exporter. However, exports can only serve as a stage rather than a permanent one. Wood show Yu Lin, the wind will destroy it, the pressure of the exchange rate, the intensification of trade protection friction. Market transformation and reduction of market structural risks are the only way to go.

The sustained development of China's economy, the enhancement of its national strength, and the strong investment in domestic infrastructure will provide continuing impetus for China's domestic demand. Focusing on the western region and developing the western region once again included in the national strategy will in turn provide a new round of opportunities for the Chinese economy. Foreign companies have come to the forefront and seize the Chinese market. We have no reason to ignore or give up. It is believed that China’s domestic demand, such as a sleeping lion, wakes up and its power is boundless. Chinese companies must become the real masters of the lions.

V. Perfecting the modern enterprise management system is the internal force of anti-dumping

The enterprises that have experienced anti-dumping and responding have a deep understanding. Whether it is the struggle for market economy status or the calculation of costs, whether it is the filling in of questionnaires or the verification of the site, the company has a complete modern enterprise system and establishes a system of standardized financial accounting. The system is the key. To obtain the five principles of EU market status, none of them are related to the basic corporate system. The filling in of questionnaires requires the provision of systematic product cost and expense accounting data. The data must be verified with each other, and the on-site verification will turn the company over again. If the data is inconsistent, it cannot provide reasonable explanations, or if no supporting material is provided, it may become a non-compliant enterprise and can be terminated at any time. If the enterprise is not in compliance or not, it will directly affect the verification result and the tax rate.

Therefore, from the perspective of anti-dumping response, the real response is the company's corporate mechanism, management system and financial system, leaving this point, all the responses are empty talk. In addition, a sound modern enterprise system, the improvement of the level of comprehensive management is also an enterprise's evergreen core competitiveness.

Of course, as the title of an article stated: “Why does the EU not only harm its own family but also impose a high anti-dumping tax on China?” For the EU, anti-dumping is also a double-edged sword, protecting the fiberglass industry. Injured downstream industries. At the same time, China's fiberglass industry is also facing an opportunity to reshuffle the cards. Several of them are happy and happy. "The strong and the survival of the fittest" are also economic laws. At the same time, enterprises regard anti-dumping as a joint combat military exercise to see how their combat effectiveness is. After the victory and defeat, it is more important to rethink the road ahead. Professor Lang Xianping’s theory is by no means alarmist, and more wars are still behind. All this is just the prelude to the "trade blockbuster"!


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