Noblelift Equipment Joint Stock Co Ltd got the market economy treatment in an anti-dumping charge from the European Union, which indicates that Chinese firms can help themselves if they follow all the rules as well as working hard, experts said.
In its final rulings for the dumping case, the EU charged the hand pallet truck maker in east China's Zhejiang Province a penalty duty of 7.6 percent, while it charged other enterprises who don't get market economy treatment duties ranging from 28.5 to 46.7 percent.
The case is significant for Chinese enterprises involved in anti-dumping charges, in particular in the European Union, because the European Commission has seldom turned over a decision in market economy treatment, said Fu Donghui, a senior legal expert at the Allbright law office, which represented Noblelift in the case.
"It indicates that China's enterprises will get favorable results in anti-dumping charges through delicate preparations and effort," he explained.
Noblelift did not get market economy treatment in the EU's primary rulings due to accounting problems.
"The company, in accordance with international accounting rules, made the European Union adjust its inaccurate decision and eventually got a low tariff rate," Fu said.
As the EU has not yet granted China full market economy status, Chinese enterprises have to apply for the market economy treatment in each dumping case. In fact, only a small number of wholly Chinese-funded enterprises have been given the treatment.
"Help from the commerce and finance ministries and relative associations is also important for the company to gain such a result," Fu said.
Meanwhile, the lawyer said Chinese enterprises involved in other anti-dumping charges could learn a lesson from this case.
The low prices of Chinese products, which are often their most important competitive advantage, have brought about several anti-dumping charges.
In 2004, 31 dumping investigations were launched against China by developed countries, a 20 percent increase on the previous year.
Following the country's entry into the World Trade Organization (WTO) nearly four years ago, Chinese enterprises are learning to adapt to such trade problems with foreign competitors. Most of them have learned how to use WTO regulations and other international trade rules to protect themselves.
"They (Chinese enterprises) are actually learning to take up challenges," Fu said.
Recently the European Union initiated anti-dumping investigations against safety shoes, leather shoes and plastic bags and sacks made in China.
So far, 80 to 100 enterprises making plastic bags and sacks have filled out the forms needed to respond to the EU charge.
Manufacturers of safety shoes of which there are only a few in China and many leather shoe manufacturers are also working hard to respond to the EU.
(China Daily July 27, 2005)
