Chinese television makers are scrambling to minimize losses in
the face of new US import tariffs, but analysts advise seeking
long-term, comprehensive strategies rather than taking the
"Bandaid-and-an-aspirin" approach to solve the problem.
The United States Department of Commerce announced on Saturday
that dumping duties will be levied on Chinese color television sets
beginning in early June, which marks the conclusion of a year-long
process that began last May.
Although Chinese TV makers could appeal to the US Court of
International Trade, analysts say there is little hope of changing
the decision. They have advised manufacturers to ship their goods
to other markets, export them from facilities outside of China or
export more high-end products, which are exempt from the additional
duty.
Shocked by the ruling, manufacturers are?seeking ways to
soften its impact. Hisense, a leading digital TV producer based in
Qingdao, Shandong
Province, plans export more high-end TV sets to the US.
Some television makers, including TCL, Konka and Skyworth, have
set up production bases in Mexico, a member of the North American
free trade zone, reportedly to avoid the US anti-dumping
charges.
Analysts also advise Chinese manufacturers to look for
cooperative ventures with overseas partners.
But, the analysts note, such moves are only temporary measures.
The real solution lies in upgrading the industrial structure and
strengthening technology.
Luo Qingqi, senior director of Pully Consulting, which monitors
the household electrical appliance industry, said Chinese makers
should adopt a long-term strategy instead of blindly grabbing for
temporary measures to offset losses.
A Tennessee electrical appliance company, Five Rivers Electronic
Innovations, and two US trade unions representing television
assembly workers filed the anti-dumping petition last May.
In November, the US ruled against the Chinese TV makers in a
preliminary decision, which dramatically dragged down Chinese TV
exports to the United States.
(China Daily May 24, 2004)