Analysis of the Countermeasures for Chinese Enterprises to Deal with Anti-dumping

For more than 20 years, foreign anti-dumping measures against China have caused China to lose a huge amount of foreign exchange earnings and lost valuable overseas markets. A large number of companies have thus been in trouble, and Chinese enterprises have long been inadequately prepared for anti-dumping and have failed to respond. This has also caused such difficulties. One of the main reasons for the situation. The government and enterprises are the two main players in responding to anti-dumping. The government is in the position of a macro administrator in anti-dumping measures. It is mainly responsible for creating a fair domestic and international competitive environment for anti-dumping micro-subjects—enterprises. Enterprises should start from their own, regulate their own business operations, and change business concepts. Form itself as a competition subject based on market rules to prevent people from giving rise to anti-dumping lawsuits. This article intends to make a preliminary analysis of the countermeasures against Chinese enterprises against anti-dumping.
First, practice internal strength, take preventive measures (a) change the marketing concept At present, China's corporate behavior is not standardized, in addition to macro-management factors and business mechanisms are not perfect, it is important that companies have not yet found a way out of low-cost competition The way out of the vicious circle. The price competition in the modern international market is based on the non-price competitive advantage, that is, the price based on the consumer demand for diversified consumption such as product quality, color variety, brand packaging, technical level, after-sales service, and corporate image. competition. This is in stark contrast to the cost-free price war in the Chinese market. Therefore, the only way to solve the repeated anti-dumping investigations of China's export enterprises can only be to take the road of non-price competition. Non-price competition should focus on two aspects, one is product differentiation, and the other is marketing innovation. Product differentiation refers to the non-price characteristics of the product, which are embodied in the product's technological innovation, quality connotation, service content, distribution channels, and training of consumer groups. [1] The purpose of implementing product differentiation is to increase the product's freedom of pricing by expanding the product's non-price characteristics to increase the distance from competing products. This strategy helps to open up the international market, establish a brand image, and continue to play a competitive advantage. It is a long-term plan to evade anti-dumping.
Another key to non-price competition is marketing innovation. Because the core of marketing innovation is to win the favor of consumers, only the products that win the favor of consumers are the products with the market. Only the technological innovation that meets the needs of consumers is the innovation that can get the price return. It can be said that, with the business philosophy of "consumer is God", marketing innovation with marketing analysis, planning, control, and optimization of pre-sales and after-sales services is the fundamental force for promoting and promoting technological innovation and product innovation. This requires Chinese companies to use marketing innovation as a breakthrough in their efforts to build a non-price competitive advantage. Enterprises should develop products based on the target market's consumption level and consumer preferences, and establish a comprehensive quality concept. Not only pay attention to the inherent quality of the product, but also pay attention to the product's characteristics, specifications, standards, and packaging's adaptability to the target market. Through a brand-new marketing approach, a relatively reasonable price is maintained in the target country's market to avoid the price war, so that anti-dumping investigations can be fundamentally avoided.
(II) Accelerating the transformation of modern enterprises and perfecting the accounting system of enterprises At present, most key countries and regions that implement anti-dumping measures against China, such as the European Union, the United States, and Australia, are allowed to comply with most of them if they do not recognize China as a market economy country. The conditions of the enterprise to fight for market economy status in a separate name. Export enterprises in China, especially joint-stock companies, foreign-funded enterprises, and private enterprises, are more consistent with the conditions for market-based operations in terms of Western standards, and are therefore more likely to gain market economy status. At the same time, enterprises should do a good job in the transformation of enterprises according to national laws and regulations and establish a modern enterprise management system and a financial accounting system in line with international standards as soon as possible.
Second, change the concept, actively responding (A) should dare to respond to, and organize an efficient response to the leadership team In the past due to the negative response of enterprises in our country, so that we lost a large number of valuable overseas markets.
However, as the government has stepped up publicity efforts, the rate of responding to Chinese companies has increased significantly. According to the latest statistics from WTO, in recent years, the overall rate of anti-dumping cases involving export products of China and other countries has risen to 60% to 70%. Among them, anti-dumping investigation cases involving the United States and the European Union, the rate of responding to Chinese enterprises has been It reaches 100%. In recent years, the absolute success rate of anti-dumping cases for export products in China (without tax settlement) has risen to 35.7%, and it can be said that significant progress has been made.
In order to face the international market, from a long-term perspective, companies should respond actively. Once the company decides to respond, it must organize anti-dumping and responding teams that are familiar with the situation, respond quickly, and have high efficiency. The personnel participating in the respondent's work must be proficient in the business knowledge of production, sales, finance, and other aspects, and fully understand the enterprise. The actual situation requires a serious and rigorous spirit that is not afraid of hardship.
(B) find a breakthrough in responding to can proceed from the following two aspects: 1 determine the fair price of anti-dumping. For Chinese enterprises, the determination of the normal value of anti-dumping is a more complicated issue. According to the anti-dumping investigation methods currently adopted by various countries in China, enterprises that have obtained market economy status will be able to use their own domestic market prices as their normal values. Enterprises that do not have market economy status will receive the “comparable price” of the surrogate country or the country’s Cost of production. Experience tells us that the victory or defeat of litigation depends on the choice of the surrogate country. In the case of China’s natural menthol exports to the United States, the reason why we won the case is that choosing Paraguay as a surrogate country is a key factor. [3] Therefore, in the anti-dumping investigation, we should cooperate with the lawyers to promptly propose the more favorable alternative countries they have chosen, and provide detailed information on the prices and costs of the relevant products of the surrogate countries, and strive for the US Department of Commerce to adopt ours. Proposals, so as to strive for initiative and reduce losses in the anti-dumping response. 2 The determination of causality between dumping and damage. Only when the exporting country's dumping behavior is the cause of damage to the relevant domestic industry in the importing country can an anti-dumping tax be finally imposed. To this end, the investigation authority of the importing country must make an assessment of the state of the relevant industries in the country. Because the evaluation system of industrial damage is very complicated, if we can grasp this point, in the case of being ruled as “dumping”, it is mainly because the import growth caused by “dumping” and the depressing of market prices are not the main reasons for the damage of similar industries in importing countries. Reasons, there are still other factors leading to the plight of the domestic industry, especially by its own industrial structure is irrational, lack of competitiveness caused by industrial difficulties, it is possible to "no damage" to close the case, do not impose any anti-dumping duties.
Third, long-term planning, strengthening international cooperation (a) seriously treat the review In accordance with the basic principles set by the WTO's anti-dumping provisions, the anti-dumping laws of various countries generally stipulate that once a foreign product arbitrates anti-dumping duties or other anti-dumping measures, unless special circumstances arise The effectiveness of its ruling will continue for 5 years. This clause is generally referred to as the "sunset" clause. [4] Therefore, even if the company loses the case, we can use the annual review opportunity to prepare related materials and prove to the anti-dumping investigation authority that in the past year, if the export price of China has changed, it will be possible to regain a comparative advantage. Low anti-dumping rates. In addition, during the “sunset” reexamination, our company must guard against the application initiated by the producer of the importing country and continue to prolong the anti-dumping measures, and should actively prepare to explain that the situation has changed, dumping no longer exists, or the related industry in the importing country has occurred. Great changes will not happen again, ending anti-dumping measures and re-entering the country's market.
(II) Strengthening international cooperation In order to avoid foreign discriminatory policies, an effective way is to conduct international cooperation with foreign companies so that their products become the result of joint ventures and cooperation between the two parties. Such products can be easily accepted by the other country. Chinese companies should regard themselves as world companies, so that Chinese companies can better go global and have world-class competitiveness. As China's labor costs and other costs have a comparative advantage over developed countries, if they can cooperate with foreign companies to cooperate, develop mutual benefits and common development, and use their corporate technologies or patents or sales systems and even joint-venture brands, on the basis of sharing benefits. In order to enter their markets in the form of return sales or other forms, the status of exporters has changed, and export behavior has become a domestic act with international cooperation in the other country, which effectively avoids anti-dumping charges.

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