Chinese candle enterprises are ready to take legal action to
protect their interests in the face of the European Union's
anti-dumping investigation, sources said.
The EU said over the weekend that it has started an
investigation to see whether candles imported from China, the
world's largest candle maker, are being dumped.
Chinese candle enterprises have been preparing for anti-dumping
accusations from as early as 2006, industry insiders said.
"We have already selected lawyers to fight the case," said Zhang
Zhibiao, spokesman for the China Chamber of Commerce for Import and
Export of Foodstuffs, Native Produce and Animal Byproducts, which
also represents the Chinese candle industry.
The EU is the major market for Chinese candles. China exported
over 44 tons of candles, valued at $300 million, in 2007, and half
of it went to Europe, according to Zhang.
Chinese candle makers are no strangers to anti-dumping cases.
The US in 2006 imposed a 108.3 percent anti-dumping tariff on
candles from China. Many candle makers have since turned to other
markets.
Most shifted to the EU, according to Liang Feiyong, manager of a
candle company in Guangdong province. "If the EU finally slams
duties on candles from China, many Chinese enterprises will go
bankrupt," said Liang.
The candle industry in China, like many other manufacturing
sectors in the country, is dominated by small and mid-sized
companies.
Zhang, however, said that while preparing for legal actions,
Chinese enterprises should pay attention to better quality and
brand building rather than competing on the basis of low
prices.
The EU's decision has also drawn concern from European
enterprises. Many big retailers, such as Sweden's IKEA, import
candles mainly from China. Once the anti-dumping tariff is imposed,
costs will increase for these enterprises as well.
(China Daily February 19, 2008)
