China's furniture manufacturers responded quietly to the US
decision to start dumping investigations which they believe
unreasonable, saying they have prepared for it.
The US Commerce Department said on Thursday it has accepted a
complaint against wooden bedroom furniture imports from China and
will launch an investigation that could lead to the imposition of
dumping duties.
Chong Quan, the spokesman for the Ministry of Commerce,
expressed his deep concern over the case, which involves a total
value of US$1 billion, the largest sum the country has ever faced
in a dumping case.
He rejected the claim by the US furniture makers that Chinese
furniture manufacturing is a non-market economy industry.
"Most of the local furniture makers are privately-owned or
foreign-funded. We expect the US authorities will grant them market
economy treatment," Chong said.
The US furniture makers have asked for duties ranging from 158
per cent to 441 per cent on wooden bedroom furniture from
China.
Local furniture makers said the US furniture makers' move did
not surprise them. In recent months, the United States has used its
trade protection laws to curb imports of textiles, television sets
and other products from China.
Cao Yingchao, an official from the China Furniture Association,
said domestic furniture exporters and makers have formed a special
committee to deal with the case.
They have contributed US$1.6 million in funds to fight the case,
Cao said.
Cao insists that the US charge is groundless, given the fact
that the exported furniture brings in more profit than furniture
sold domestically.
The US furniture makers have accused Chinese furniture makers of
selling products at "below-market costs" which they say has
contributed to the closure of dozens of US furniture factories this
year.
"We are not dumping. We export because the products can sell at
higher prices than at home," said Cao.
Cao also noted that most of the exporters are private companies
that have not been subsidized by the government.
"Chinese exporters can offer lower prices because of the low
production costs in China, which explains why so many foreign
furniture makers either shift their production bases to China, or
have their products made here and sold back home," he said.
Many US furniture importers, wholesalers and retailers make
their lives on the Chinese furniture trade, which has created a lot
of jobs in the United States, Cao said.
(China Daily December 13, 2003)