In 2005, according to the WTO data, China faced 57 anti-dumping investigations from member countries, marking an increase of 8 cases compared to 2004. This placed China at the top among all WTO members, with Indonesia being the only country with fewer cases at 14. Although the auto industry has not yet seen a surge in anti-dumping measures, experts warn that as China's auto parts exports grow and become more competitive, foreign countries may increasingly target this sector in the future. Therefore, auto parts companies should remain alert and proactive.
Since China's first anti-dumping case in 1979, there have been nearly 10 cases involving the auto industry. Products like wheel washers, brake drums, disc brake cylinders, tire chains, windshields, and steel fuel tanks have been affected by such measures over the years.
Experts point out that China’s auto parts are primarily low-value, labor-intensive, and resource-based products. These include items like automotive glass, tires, fuel tanks, filters, bearings, and brake discs. In the export competition, Chinese manufacturers often rely on price rather than innovation or branding. This strategy leads to intense price wars, which can trigger anti-dumping actions.
Anti-dumping is typically triggered when a product is sold below its normal value, or when there's a sharp increase in exports over several years, or if prices are declining and affecting local industries. With China's auto parts exports growing rapidly, many domestic manufacturers compete aggressively on price, which not only harms the overall competitiveness of the industry but also increases the risk of facing anti-dumping measures from other countries.
Additionally, after joining the WTO in 2001, China was classified as a "non-market economy" for 15 years, making it more vulnerable to anti-dumping investigations. This classification allows other countries to apply different rules when assessing dumping, increasing the likelihood of China being targeted.
To avoid anti-dumping, experts suggest that auto parts companies should focus on quality and product differentiation. This means investing in technological development, building strong brand identities, and shifting from price-based competition to quality- and innovation-driven strategies. Companies must also understand the technical regulations and trade policies of importing countries to avoid unintentionally triggering anti-dumping investigations.
Moreover, the Chinese government has introduced new regulations to manage export practices and promote fair competition. The recently revised draft of the “Provisions for Investigation and Punishment of Unfair Low-cost Export Behaviors†aims to limit the number of exporting manufacturers and encourage cooperation rather than cutthroat competition. These measures are expected to enhance the international competitiveness of China’s auto parts industry and protect the interests of domestic companies.
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