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Chinese color picture tube exporters should prepare for the coming European Union anti-dumping investigation, the Chamber of Commerce for Import and Export of Machinery and Electronic Products warned yesterday.

 

The European Commission is expected to formally initiate the investigation against color picture tubes originated from China at the beginning of next month, the chamber said.

 

The European Union is acting on a complaint filed by European companies in Czech Republic and Lithuania. They claimed that their Chinese rivals were selling in the European market at prices below costs.

 

If the claims are correct, the European Commission is likely to collect high penalty duties from Chinese manufacturers.

 

"It (the claim) has little impact on the export of Chinese color picture tubes," said Gao Xiangjun, an official with the Chamber. "This is because the volume exported to the European economic bloc is small."

 

He said the European Union's demand for color picture tubes was not large, as most of the color television industry has been moved to developing countries.

 

Gao said the Chamber organized a conference earlier this month informing enterprises about the possible investigation when they first received the information.

 

He said the Chamber called enterprises to respond as soon as possible, but reactions of companies were not yet available.

 

The anti-dumping case affects more than 10 companies, not only domestic companies but also foreign-invested companies in China, and involves an annual export value of nearly US$20 million.

 

Some multinational companies might give up the case because they could move production and export to other countries, said an expert who declined to be named.

 

European enterprises filed a similar dumping complaint against 14-inch color picture tubes from China in 1999, but the case ended without any definite rulings. The claim this time is against all sizes of Chinese products.

 

In another development, China has made great progress in the legislation of domestic trade, according to the Ministry of Commerce.

 

The Ministry said in a statement that China not only fundamentally completed the framework of its laws on domestic trade this year but also implemented some key laws and regulations concerning market circulation in China.

 

Among these laws and regulations, the long-awaited Regulation of Direct Selling Administration published in September caused the largest concerns.

 

The regulation was made to fulfil China's commitment to the World Trade Organization.

 

As well as opening the direct selling business, the regulation also strengthens the management of the market to protect consumers and stop illegal operations.

 

It imposed strict requirements on market entry for direct sellers, their operations and sales promoters.

 

The regulation, which took effect on December 1, has affected a number of companies in this sector, including some well-known multinationals, like Amway and Avon.

 

Besides this, the government also issued several regulations on some key sectors, including vehicle sales, pawn administration and alcohol circulation.

 

Besides the completed laws and regulations, progress has been made in amending anti-trust law, regulations on commercial franchising as well as financing leasing law, the ministry said.

 

(China Daily December 30, 2005)