Chinese suppliers weigh anti-dumping actions against foreign competitors

Shanghai, December 10, (Gasgoo.com) -After losing too many anti-dumping cases in overseas market, China is encouraging domestic automotive suppliers to take legal action against foreign auto parts manufacturers that dominate China's domestic market. Government-led preparation for anti-dumping proceedings may start early next year, local newspaper 21st Century Business Herald reported today.

 

China Association of Automobile Manufacturers (CAAM) and Ministry of Commerce (MOC) have reached an initial agreement on carrying out anti-dumping investigations among the world leading auto parts suppliers in China. The investigation may kick off early next year.

 

"China's domestic auto parts manufacturers are threatened by the international competitors. The situation is even worse comparing with the OEM markets and the whole auto parts industry is very likely to be wiped out," said Wang Qinhua, ex-director of the Bureau of Industry Injury Investigation under MOC.

 

Currently, more than 70 percent of the world's Top 100 auto parts suppliers have business operations in China and China has about 1200 auto parts suppliers that are either wholly-owned by a foreign company or Sino-foreign joint-ventures. These foreign or joint venture suppliers have grabbed over 50 percent of China’s auto parts market.

 

By contrast, China has more than 5000 local-brand auto parts companies, most of which are small and engaged in unregulated competition.

 

"Imported auto parts are generally technology-intensive products, and they have a great impact in domestic market In fact, some have even monopolized the Chinese market in certain products,” said Dr. Guo Yan, an expert with China Automotive Technology & Research Center.

 

As of 2008, China will improve the early-warning system for the automotive industry, expanding the scope of the oversight, according to an unnamed source at a recent conference dedicated to studying how to maintain safety of China's key industries.