The United States is China's largest wood flooring companies export market, exports about 100 billion of the total export volume of about 1 / 3, but the average profit margin of only 5% to 10%.
The U.S. "double reverse", the Chinese enterprises would actively respond, but also reconsidered the long term, through increased investment in research and development related to enhance their core competitiveness, bamboo furniture rather than blindly wasting resources, to fight the cost of that price, at the expense of the interests of workers and the expense of the environment to earn meager profits.
U.S.bamboo kitchen Forest Products Industry in China for the first time the "double reverse", the wood flooring business in China pushed to the dilemma of the crossroads.
"If you do not respond, the Commerce Department could raise tax rates dramatically, which means that Chinese companies will abandon the U.S. wood flooring market." Zhe Jiang Longsen Wood Co., Ltd. Deputy General Manager Liu Runs Jan. 20 interview with this author in interview.
Ronson wood in the overseas market, the U.S. market share of less than 10%. But the United States is China's largest export market for wood flooring companies, exports about 100 billion of the total export volume of about 1 / 3,bamboo flooring the average profit margin of about 5% to 10%.
The "double reverse" sponsor for the U.S. hardwood flooring business alliance, they believe that China exports to the U.S. pricing of multi-layer solid wood floor is too low, then on October 21, 2010 to apply, requiring such products to China and the countervailing combined anti-dumping investigations, and proposed to introduce a 242.2 percent anti-dumping tariffs.
December 3, 2010, the U.S. International Trade Commission ruled that the initial multi-layer wood flooring Chinese exports to the U.S. cause damage to the U.S. industry, U.S. Department of Commerce "double reverse" investigation into the substantive phase, involving 169 Chinese enterprises.
"When a flow of Chinese Association of Wood and Wood Products Commission to fax the floor, we are dumbfounded." Oasis Group, a new head of Wang Wei (pseudonym) interview with this author in an interview, said the company has joint more than 30 Wood and wood products in China Circulation Association co-sponsored the protest, the "China Wood Circulation Association and wood products, is helping us take the proceedings attorney, the Commerce Department is also actively coordinated."
Baotuan protest: the cost from the Association of Contingency Fund.
The experience "double reverse" such as life at home, Dekor, nature, friends and many other world flooring companies in China.
"These companies are a positive response, and the collection of domestic law firms to collect, delivered to the relevant evidence." China Timber Circulation Association and Wood Products Committee is responsible for the floor I told this newspaper.
The person in charge to provide the material shows that the "double reverse" Although there is only 169 listed companies, but in the end the Chinese companies involved may far exceed that amount.
"Litigation is very slow walk program, is estimated to be in a long time after the Spring Festival to the result. At present the Ministry of Commerce of China and the U.S. Department of Commerce is an active communication and coordination." The official told reporters.
Wang Wei told this writer that the protest cost of wood products from China Timber Circulation Association and the floor of the Commission's contingency fund, "according to the budget committee the floor, we pay a fee every year, the litigation costs are generated from inside out. "
"It is not known how much money to fight the lawsuit, the specific process is complex, we are not a good estimate." Wang Wei said the funds to disclose the amount, "spend the money to fight this lawsuit at least a hundred million yuan this year Basic contingency budget enough we will not impose further costs of the other. "
No matter how the costs and Liu pour have advocated actively protest, "In 2005, we encountered the EU anti-dumping investigations initiated, due to lack of experience, we chose to give the respondent, it now appears the choice of the year is incorrect."
Liu told the paper flowing, then the EU anti-dumping investigations of Chinese origin mainly for flooring products, while Ronson was the main production of solid wood and wood parquet, "With the development of enterprises, our annual production of laminate flooring increase, then give the respondent to give up a market. "
China's wood flooring business there lessons from the United States.
As early as July 1, 2005, the company had a company called Unilin to 30 from around the world wood flooring companies (including 17 Chinese companies) the grounds of infringement of its patent, filed with the U.S. International Trade Commission, "Section 337" Application for . After including the composition of Chinese companies, including Power Dekor four groups were responding to, spending more than 100 million yuan, and ultimately only a business win.
Beijing law firm Xuzhuo Ping Jia and reflect on this case, said that the interests of the respondent companies have their own demands and small thinking, big companies want to take the opportunity to exclude small and medium enterprises in the U.S. market, small business wants a lift profit Finally, the formation of conflicts, information barriers and different action situation.
"Despite the lead of China Forestry Industry Association, responding to business or failed to unite, fight side by side, but has formed four groups, led by their respective lawyers were responding to. As a result spent a lot of their high costs, put a lot of manpower, waste of valuable time responding, but did not receive good results. "Xuzhuo Ping said.
Xu Zhuoping that high costs are generally small and medium enterprises can not afford an independent, not responding to the loss of U.S. market, the respondent may be costs to collapse, they often choose silence, waiting for responding to large enterprises, "it is necessary to establish a full responding to the industry cost-sharing and subsidy mechanisms, improve enterprises responding to the positive and avoid free-riding. "
Part of the company called the end of the price war.
Wang Wei of Chinese enterprises in overseas wood flooring played the "price war" expressed dissatisfaction with the practice.
"Now China's export enterprises in overseas play the 'price war', 'new wars', 'brand wars', etc. is a very common phenomenon, the goal is for their own interests, not knowing this may be our most vulnerable side." King Wei said.
Wang Wei, an example is a well-known industry-recognized line of wood flooring brands in overseas frequently played about 29 yuan per square meter, low-cost, low-quality wood flooring not only broke the reserve price, but also much lower than in August last year, China Forest Products Industry Association, the pricing of wood flooring materials.
Natural flooring (China) Co., Ltd. President She Xuebin said, domestic flooring companies in the United States is highly competitive price war phenomenon indeed.
According She Xuebin, the domestic flooring companies in the United States generally do not build their own sales channels, not channel support, difficult to play the real brand, no brand is very easy to fall into a price war.
"We ourselves to channel construction, supermarkets, distributors and direct sales stores have, but very difficult, but we still have to work." She Xuebin said.
Power Dekor Group, a senior, said the "double reverse" little effect on the Power Dekor flooring, largely because Dekor more balanced distribution of domestic and foreign markets, not one dependent on foreign markets, especially in high-end wood flooring "The U.S. market is only a small part of our exports, our overall export performance is not a big impact."
"Now we will bamboo flooring market as a strategic shift, while focusing on developing the export of the domestic market and gradually towards a mature and stable market to the development of our previous flagship brand overseas will return home, in the future high-end flooring materials layout of the market will gradually form the situation both at home and abroad, and gradually over-reliance on a single market out of the dilemma. "Power Dekor Group department heads said.
Domestic enterprises are responsible for a large wooden floor who said that for the "double reverse", actively responding to only one aspect of Chinese enterprises in the long run, Chinese flooring companies must increase R & D and other related investment, to enhance their core competitiveness, rather than blindly wasting resources, to fight the cost of that price, at the expense of the interests of workers and the expense of the environment to earn meager profits.
According to incomplete statistics, the country has more than 5,000 wood flooring business, "almost the export of wood flooring companies have encountered anti-dumping, countervailing, tariff penalties and other sanctions." China Timber Circulation Association and Wood Products Committee Vice Chairman Yang Meixin floor said.
According to statistics, China's exports to the U.S. has declined year on year the number of wooden flooring. The "double reverse" may cause the wood flooring in China face more difficulties in export enterprises, especially those enterprises with high export ratio.
Wood and wood products in China Circulation Association Flooring Committee on Responding to the "double reverse" proposal:
(1) If the company that exports products, not part of the scope of the product under investigation, the company either directly or through counsel to contact the investigating authorities, a clear statement of the product is not export the product under investigation or on whether the product is not under investigation the investigating authorities to determine when the request is too recognized. If this is true, you can not participate in the subsequent investigation.
(2) If there is no exit in the survey period, the enterprises can be "no export during the survey period," the fact that, directly or through counsel informed the investigating authorities. At this point, companies have two options, in the subsequent investigation does not respond, or in combination with other companies responding to survey damage, no damage claim defense. Specific programs should be, as the circumstances of the case.
(3) If the export enterprises in the survey period, the investigating authorities but not mandatory respondent companies listed in the list or not to force the Chinese government designated as the respondent enterprises, the companies have two options, actively responding to or not respondent. If you do not respond, you end up with is that enterprises involved in the weighted average rate of countervailing duty, equivalent to their own fate in the hands of others, resulting in great uncertainty. To remove this uncertainty, the best method is still responding. Once sure you want to responding, you can tell the Chinese Government of this decision. In this way, the Chinese government will be in the government business as mandatory respondents, one respondent. Enterprises in line with the survey can be subsidized according to their individual circumstances to determine the subsidy amount.
(4) If the export enterprises in the survey period, and authorities in the investigation are listed in the list of mandatory respondent enterprises, the enterprises in order to keep foreign markets, we must respond. Anti-subsidy cases as tight, heavy workload, and generally simultaneously with the anti-dumping investigations, therefore, enterprises should try to decision-making, get to work in order to have sufficient time to prepare information.