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| Chinese firms' difficulties 'ignored' as EU tightens protectionism |
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http://www.introtointernetmarketing.com
2011-07-12 |
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BEIJING - Wu Jianfeng said he may stop exporting his company's ceramics products to Europe in the face of increasing protectionism.
His company, Hongyu Ceramics, sold around $3 million worth of goods in Europe last year, making up around 10 percent of its turnover.
But a major hike in import duty on Chinese ceramic tiles from 5 to 73 percent from March imposed by the European Union may force the Foshan, South China's Guangdong province-based company to seek other markets.
Wu, the company's general manager, says the duty was more than the company could easily absorb.
"We are considering quitting the European market because the import duty is far beyond our ability to withstand," he said.
According to the Ministry of Commerce, Chinese companies have been the victims of a number of protectionist measures.
It said the EU instigated 11 investigations into Chinese products last year, a 60 percent increase over 2009.
Wu said while China was accused of overprotecting its own industries, the difficulties Chinese companies face in overseas markets like the EU is often ignored.
"It is untrue and unfair for the EU to accuse us of dumping our products. Our price advantage comes from lower labor and logistics costs," he said.
The general manager also insists the new duties will be against the interests of both ceramic tile dealers and European consumers.
"They think they are protecting their domestic producers by imposing high import duties on Chinese ceramics. But what about their ceramic tiles dealers and consumers? This will be a lose-lose situation for them," he said.
In May, the EU also imposed duties on coated fine paper that could prove as high as 47.1 percent as an anti-dumping measure.
Yao Jian, a spokesman for the Ministry of Commerce, said the EU was stepping out of line with World Trade Organization rules and was taking measures merely to protect its own industries.
"It is safe to say the EU did not take into account the market-oriented transformation that is taking place in China. It is taking these steps to make doubly sure it is protecting its own industries," he said.
There have also been recent moves against producers of herbal traditional Chinese medicine (TCM) products.
From April this year, Chinese companies need a license to sell their products in Europe, but none have been granted so far.
Chinese companies have complained bitterly about the high registration fees.
An industry insider, who is the chair of a TCM college in Europe, says the legislation was the result of lobbying by major pharmaceutical companies.
"The multinationals will get bigger market shares if TCM companies fail to pay the high registration fees they now need to enter the EU market," said the insider, who did not want to be named.
Zhou Xiaoyan, director of the fair trade bureau under the Ministry of Commerce, said that Europe is increasingly adopting a protectionist attitude against China.
"We are seeing increasing trade frictions between China and the EU, especially in manufacturing industries like iron and steel, shoes, aluminum products and toys," she said.
"Chinese companies have to be increasingly aware about these moves as sometimes there will be chain reactions. If the US initiates an anti-dumping case toward one product, for example, the EU or some other markets will follow in its steps." |
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