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China's makers of TV sets face the prospect of hefty penalties in their largest market after being accused of dumping practices, reports revealed Sunday.
Officials and company leaders from the industry are considering countermeasures against an anti-dumping petition lodged by United States industries this month.
The US TV maker Five Rivers Electronic Innovations and two labor unions, the International Brotherhood of Electrical Workers (IBEW) and the International Union of Electrical, Electronic, Furniture and Salaried Workers (IUE-CWA), formally charged color television manufacturers in China and Malaysia with unfair trade practices on May 2.
The petition covers all Chinese TV makers who exported products to the United States during July-December last year. Most of China's major TV manufactures are affected, including Haier, Changhong, Konka and Skyworth.
An official from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), who declined to be named, said the chamber had held a closed-door meeting with government officials and company leaders to discuss how to respond to the charges.
But the source refused to say what decisions had been made at the meeting.
China is the world's largest producer of color TV sets, exporting 18.82 million units with a total value of US$2.14 billion last year.
Cheng Zhiqiang, a spokesman from TV maker Skyworth, which was named in the US petition, said his company will actively fight the charge.
The US Department of Commerce will decide whether or not to accept the case no later than June 12.
If it is accepted, the US Department of Commerce will make a ruling on the case in October.
The petition requests duties ranging from 84 percent on TVs from China to 46 percent from Malaysia.
If the US market is closed because of high duties, Chinese TV makers will run into difficulties because their right of export to the European Union (EU), another large market, is also limited.
Seven color TV makers from China finally won access to EU markets after an undertaking was signed with the union in September.
The undertaking was accepted by the EU after a 15-year-long anti-dumping investigation into Chinese-made color television receivers which barred most of the products from the market through high duties.
The seven companies exempted from duties had to accept quantity and price thresholds on their exports to the EU over set periods.
If any of the firms breach or are suspected of breaching these thresholds, all will be held accountable and could have the anti-dumping tax reimposed.
And the tax rate of 44.6 percent still applies to all other Chinese TV makers.
According to a report released by the World Trade Organization last week, China's exports were the most heavily-targeted in anti-dumping cases in the second half of last year.
Twenty-seven investigations were under way into Chinese exports -- more than any other country. Worldwide, 149 investigations were under way.
(China Daily May 12, 2003)
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