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Chinese firms should face up to anti-dumping charges and respond
actively to lawsuits by correctly using WTO rules to protect their
legitimate rights and interests, Chinese legislators and
entrepreneurs said?in Beijing?Wednesday.
With the rise of trade protectionism, it is quite normal that
Chinese firms fall pray of anti-dumping charges as their products
are very competitive due to cheap labor, said Li Guoguang, NPC
deputy and vice-president of the Supreme People's Court.
The thing is to respond actively, with reason and restraint,
added Nan Cunhui, the boss of China's biggest low-voltage
electrical appliances plant. "Even if we lose, we can also learn
many things. If we avert such charges, it is very likely to bring
misfortune to the whole industry."
Li Guoguang told Chinese entrepreneurs not to be afraid of
losing in lawsuits, not to be afraid of spending money and not to
be afraid of encountering difficulties, adding "face up to the
lawsuits in a composed manner. He appreciated the positive attitude
of enterprises in Zhejiang, where 100 percent of enterprises have
responded to anti-dumping charges and 40 percent of them have
won.
In 1999, the United States carried out anti-dumping
investigations against 30 Chinese apple juice producers. After the
arbitration by the US department of commerce, six of the ten
enterprises answering the lawsuits obtained a zero tariff and the
other four got a 23.38 percent weighted average tariff. But those
who failed to answer the lawsuits were subject to a 51.74 percent
tax rate.
Of course, we should find a way of avoiding being charged with
dumping, Nan Cunhui said. Before entering the international market,
it is necessary to get well prepared and study the intellectual
property right law, the international trade law and tax laws and
quality law of the countries concerned and invite experts in these
areas to advise on the trading practices.
In panel discussions with NPC deputies, Chinese leaders
cautioned Chinese entrepreneurs that WTO rules protect fair
competition but not backward enterprises and they urged Chinese
enterprises to give up their low-cost expansion strategy, strive to
have their own intellectual property rights and avoid anti-dumping
lawsuits as much as possible.
(Xinhua News Agency March 11, 2004)
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