Let enterprises play leading role in response to prosecution

In responding to several recent "classical" anti-dumping cases, corporations are becoming the most active and most energetic part of the responding team. Ningbo Xinhai three times went to overseas court and won three times. It is the first company in China to have broken the barrier of the lighter CR law of the EU. SDIC Zhonglu spent four years counterpleading with the US Department of Commerce without giving up and won the first "civilian suing government" case, preserving the export market for Chinese condensed apple juice. Zhejiang Xin'an Chemical encountered eight anti-dumping cases. While responding to the cases they tried hard to improve their internal work, won successive victories in the well-known glyphosate lawsuits, etc.

Of course companies like them are rare. In tackling increasing trade frictions, especially anti-dumping cases directed at China, persistent efforts have been made at home to promote the establishment of a "combined four party" mechanism that consists of the competent departments, local governments, intermediate organizations and enterprises. However, in actual operation the direct interest party - the enterprise has generally not been playing a leading role. Many companies lack a strong self-vindicating awareness for fear of lawsuits and of costing money. Sometimes when a case presents itself, not a single company in the industry tries to respond. The result is a retreat all along the line. Or a majority of companies wait for their peers to respond and counterplead. If the case is won the non-responding companies often compete in reaping the fruit. The principle of " whoever responds gets the benefits" is hard to put in place, as a result, the interests of the responding company cannot be fully guaranteed, thus dampening its initiative. Some companies, in the predicament of anti-dumping case, fail to adjust timely their production and export management strategies, but instead they hope to get away with it by luck.

In addition, there exist serious problems with governments at various levels and intermediate institutions, such as unclear demarcation, overstepping and default of responsibilities in anti-dumping responding. The government, intermediates and enterprises lack effective interaction. Some local governments still lag behind in function transition and the improvement of working methods and means. For example, during the responding process they interfere unnecessarily in the company's specific affairs, thus restricting the company in many ways and making it at a lost which way to go. Some intermediate organizations wear a strong color of "sub-governments". They have only a faint idea of thinking about the company, speaking for the members and rendering service to companies, they fail to bring their self-disciplinary role into full play. Even among some trade intermediates, there are disputes over so-called national and local levels, the orthodox and unorthodox and chamber of commerce and association. They engage in internal strife even before the overseas lawsuit comes to a solution. These problems exist in every aspect of the anti-dumping responding work. They impede the smooth carrying out of the responding work and also make it hard to advance China's fair trade work as a whole to a higher level and a deeper field.

Trade friction is the natural outcome of rapid trade growth. By the end of last year, WTO members had registered 356 anti-dumping cases involving China, which accounted for one-seventh of the total registered cases. It is imaginable how much pressure has been put on domestic enterprises. Since it is impossible to dodge them, the companies should learn from those bravely-responding companies first not to be afraid of losing, second not to be afraid of hardship and third not to be afraid of pain (meaning high costs) and bravely stand in the forefront of the anti-dumping responding work. Facts have proved that only by responding resolutely and counterpleading with all strength can there be opportunity and possibility to win. Governments at various levels and departments concerned also should earnestly finish the function transition. It is unnecessary to resort to administrative means to intervene what can be self-regulated by the market or solved by the enterprises and intermediates. What governmental departments need to do is to intensify public service, strengthen negotiation with the foreign side, improve industrial early-warning mechanism and responding incentive mechanism, provide all-dimensional information consultation and further improve export market order. The intermediates also should do a good job in supporting the enterprises, pay attention to the mutual complementation of advantages, reinforce coordination between domestic and foreign work, perfect training within the industry and do well in the market-oriented responding operation so that more and more enterprises can truly become the leading body in responding to anti-dumping cases.

This is an article carried on the 6th page of People's Daily on June 17 and translated by People's Dailiy Online