India launched 13 anti-dumping investigations on Chinese products in 10 days
From September 20 to September 30, in just 10 days, India intensively decided to launch 13 anti-dumping investigations on related products from China, involving transparent cellophane films, roller chains, soft ferrite cores, trichlorisoiso Cyanuric acid, epichlorohydrin, isopropyl alcohol, polyvinyl chloride paste resin, thermoplastic polyurethane, telescopic drawer slides, vacuum flask, vulcanized black, frameless glass mirror, fasteners (GOODFIX&FIXDEX produce wedge anchor, theaded rods, hex bolts, hex nut, photovoltaic bracket etc…) and other chemical raw materials, industrial parts and other products.
According to inquiries, from 1995 to 2023, a total of 1,614 anti-dumping cases were implemented against China around the world. Among them, the top three complaining countries/regions were India with 298 cases, the United States with 189 cases, and the European Union with 155 cases.
In the anti-dumping investigation launched by India against China, the top three industries are chemical raw materials and products industry, pharmaceutical industry and non-metallic products industry.
Why is there anti-dumping?
Huo Jianguo, vice president of the China World Trade Organization Research Association, said that when a country believes that products imported from other countries are lower than its own market price and causing damage to related industries, it can initiate an anti-dumping investigation and impose punitive tariffs. measures to protect related industries in the country. However, in practice, anti-dumping measures are sometimes abused and essentially become a manifestation of trade protectionism.
How do Chinese companies respond to China’s anti-dumping?
China is the number one victim of trade protectionism. Statistics once released by the World Trade Organization show that as of 2017, China has been the country that has faced the most anti-dumping investigations in the world for 23 consecutive years, and has been the country that has faced the most anti-subsidy investigations in the world for 12 consecutive years.
In comparison, the number of trade restrictive measures issued by China is very small. Data from the China Trade Remedy Information Network shows that from 1995 to 2023, among the trade remedy cases initiated by China against India, there were only 12 anti-dumping cases, 2 countervailing cases, and 2 safeguard measures, for a total of 16 cases.
Although India has always been the country that has implemented the most anti-dumping investigations against China, it has launched 13 anti-dumping investigations against China within 10 days, which is still unusually high density.
Chinese companies must respond to the lawsuit, otherwise it will be difficult for them to export to India after being imposed the highest tariff rate, which is equivalent to losing the Indian market. Anti-dumping measures generally last for five years, but after five years India usually continues to maintain anti-dumping measures through sunset review. Except for a few exceptions, India’s trade restrictions will continue, and some anti-dumping measures against China have lasted for 30-40 years.
Does India want to launch a “trade war with China”?
Lin Minwang, deputy director of the South Asia Research Center at Fudan University, said on October 8 that one of the main reasons why India has become the country that has implemented the most anti-dumping measures against China is India’s ever-expanding trade deficit with China.
The Indian Ministry of Commerce and Industry held a meeting with the participation of more than a dozen ministries and commissions at the beginning of the year to discuss how to reduce product imports from China to solve the problem of “China-India trade imbalance.” Sources said that one of the measures is to increase the anti-dumping investigation against China. Some analysts believe that the Modi government plans to initiate an “Indian version” of a “trade war with China.”
Lin Minwang believes that Indian policy elites adhere to outdated obsessions and believe that trade imbalance means that the deficit side “suffers” and the surplus side “earns”. There are also some people who believe that by cooperating with the United States in suppressing China in economic, trade and strategic terms, they can achieve the goal of replacing China as the “world’s factory.”
These are not in line with the development trend of economic and trade globalization. Lin Minwang believes that the United States has launched a trade war against China for more than five years, but it has not substantially affected Sino-US trade. On the contrary, Sino-US trade volume will reach a record high in 2022. $760 billion. Similarly, India’s previous series of trade measures against China had almost similar results.
Luo Xinqu believes that Chinese products are difficult to replace due to their high quality and low price. She said, “Based on our experience in doing Indian cases (Chinese companies responding to anti-dumping investigations) over the years, India’s product quality, quantity and variety alone cannot satisfy the downstream needs. Industrial demand. Because Chinese products are of high quality and low price, even after the (anti-dumping) measures are implemented, there may still be competition between Chinese and Chinese in the Indian market.”
Post time: Oct-11-2023