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China Vows not to Dump on Markets
China National Electronics Import and Export Caihong Co recently won an anti-dumping case against Dutch electronics giant Philips.
The news of the Chinese firm's defeat of Philips, decided by the European Council, came in the middle of accusations by the European Union and the United States that Chinese colour TV, energy-saving light bulb and steel makers were dumping their products.
It is a major breakthrough in the company's attempt to squeeze into the European market and has set an example for others, who should take up legal means and respond actively in the face of wrongful anti-dumping cases filed by foreign companies.
As China's economy grows, more and more Chinese firms are becoming increasingly eager to try their luck on the international market. Often they find their highly competitive and labour-intensive products become the target of anti-dumping charges.
Discriminatory measures in foreign countries contribute to many anti-dumping cases against Chinese companies. Although China has set up a socialist market economy with markets playing an increasingly dominant role in distributing resources, it is still labelled a "non-market economy" by many of the world's countries.
The conception has resulted in long-standing and unfair measures by foreign countries in their investigations into anti-dumping cases against China. Some use prices of a "substitute country" to judge whether Chinese firms have been dumping products, then fling erroneous accusations at them. This kind of trade discrimination has forced many Chinese products out of foreign markets.
With China's long-awaited accession to the World Trade Organization (WTO) just around the corner, domestic companies should be highly vigilant of anti-dumping charges since the WTO entry will benefit the country with broader export channels.
They should make self-discipline a top priority, keeping in mind that flouting regulations influences the image of Chinese products in foreign markets. This can reduce their market share.
Domestic firms should also invest more in science and technology innovation, sticking to a traditional Chinese saying that "true gold fears no fire."
Source: chinadaily.com.cn
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