Chinese paper enterprises anti-dumping "rights protection"

After repeated anti-dumping problems, Chinese companies regained their power after they had first tasted the fruit.

On August 5th, Shandong Chenming, Weifang Henglian, and Jindong Paper Industries formally submitted an application for review of anti-dumping investigations to the Ministry of Commerce to request an extension of the anti-dumping duty imposed on coated paper originating in Japan and South Korea. Previously, as the first domestic anti-dumping case after China's accession to the WTO, the Ministry of Commerce had imposed a 4%-71% anti-dumping tax on Japan-Korea coated paper for five years, but this measure will expire in August this year.

"From the current progress, it is highly probable that the anti-dumping tax will be prolonged." Qi Xueyong, head of the fair trade department of the Shandong Provincial Department of Foreign Trade and Economic Cooperation, told the reporter. Prior to this, he had specially accompanied the relevant personnel of the Ministry of Commerce to Chen Ming and other companies to investigate and found that Japanese and South Korean companies "dumped dumping to China and further impaired the possibility of Chinese industry."

This not only means that the coated paper industry will gain another five-year development opportunity, but more importantly, it will provide samples for domestic companies to use the WTO rules to safeguard their own rights and interests.

The Big Three "jointly"

On August 6th, in the Office of the Shandong Paper Industry Association, the journalist and the secretary-general of the association, Zhao Zhendong, sat opposite each other. On the middle of the coffee table, a beautifully printed copper paper magazine was spread out, which was thick and stiff. Many people may not know that seemingly ordinary coated paper has recently become the "protagonist" of disputes in international trade.

The reporter was informed that Chenyin, Henglian, and Jindong’s production of coated copper paper exceeded the national total by half, and complied with the relevant regulations. The Ministry of Commerce has decided to accept the application and re-examine the start-up period of the Japanese and Korean copperplate papers. "Anti-dumping is a game rule that everyone agrees on. Chinese companies work according to the rules, and they have reason." Zhao Zhendong commented.

The Ministry of Commerce stated that the final review will be made on November 5 after three companies apply for three months, and it will be decided whether or not to maintain anti-dumping sanctions against Japanese and Korean coated papers.

Why did the copperplate paper industry get into trouble? Just last year, the United States also launched an anti-dumping and anti-subsidy "double reverse" investigation on Chinese coated paper.

Needless to say, this area has become one of the most intense conflicts in the trade friction between countries. This reporter learned that as a high-grade paper product, coated paper is widely used in books and magazines, color pictorials, and product advertisements. Coated paper surface is a layer of non-metallic mineral coating, which reduces the use of wood pulp, and tons of water consumption is also very low, environmental protection performance is quite good, so it has become an industry to expand in many countries.

In this context, Chen Ming's intention to apply with two other companies is self-evident.

Meng Lingxia, manager of Chenming Group’s export department, said in a telephone interview with reporters that although anti-dumping protection is for the entire industry, rather than a single company, industry leaders like Chenming have the responsibility to win their due rights for the entire industry.

According to the rules "card"

The anti-dumping of coated paper is the rational use of WTO rules.

Qi Xueyong revealed that in the anti-dumping investigation process, the commercial department was cautious and cautious. The basis for its determination is the possibility of dumping.

But the reality is indeed not optimistic. The market competition faced by Chinese paper enterprises is becoming more and more fierce. If hurriedly canceling anti-dumping, it will surely suffer a major impact. At present, the annual output of paper products in China is 73.5 million tons, and there are more than 3,600 paper mills in the country. The average size of each paper is only 20,000 tons. Once it encounters the price competition among the giant transnational paper companies, a large number of enterprises will be unable to continue.

People still vividly remember the scene before anti-dumping. At that time, Japanese and Korean art papers monopolized the Chinese market, and the prices were extremely high. When domestic industries began to sprout, they quickly depressed prices and tried to squeeze the national paper that was fashionable and weak. At this time, relevant companies filed anti-dumping measures to protect their own industries in due course.

"Only by developing it can we have the capital to compete with foreign countries." Zhao Zhendong deeply felt.

Coated paper is a high-end product that has competed in the past and is now more intense. Meng Lingxia said that China and Japan and South Korea use imported wood pulp, and everyone's degree of automation of paper machines is not much different, and competition is more direct. Because Japanese and Korean paper companies have perfect sales channels and stable product quality, their products sell well. "As a latecomer on the market, we do have a certain gap."

Five-year opportunities

The implementation of anti-dumping measures has given local companies an excellent opportunity for development.

As early as five years ago on August 6, 2003, the then Ministry of Foreign Trade and Economic Cooperation issued a final ruling that the dumping of imported copperplate paper originating in South Korea and Japan was found to be a dumping, and the domestic coated paper industry in China was substantially damaged and dumped. There was a causal relationship between the damages, and it was decided that anti-dumping duties should be levied on Korean and Japanese companies.

Zhao Zhendong admitted that the five years of anti-dumping sanctions against Japanese and Korean copperplate papers had contributed to the great development of the domestic industry. After anti-dumping, the operating rate of domestic coated paper enterprises has apparently rebounded. In 2007, the production volume reached 4.3 million tons, which is 1.7 times more than the 1.6 million tons in 2002.

On the other hand, from the perspective of the global coated paper industry, the main producing countries are the United States, Japan, Germany, and South Korea, and the demand is concentrated in the United States, Japan, Europe, and China. As the production capacity of copperplate paper in Japan and South Korea is greater than its domestic demand, it requires a large amount of exports. In South Korea, for example, more than half of its production capacity depends on exports. Due to the adjoining geographical location and China's growing consumer demand, China is the ideal dumping market for Japan and South Korea. Therefore, it is still necessary to use trade rules to protect the national paper industry.