Dealing with auto parts anti-dumping should be a multi-pronged approach!

With a positive attitude, it is possible to win the case. Therefore, responding positively is the key first step. According to industry insiders, auto parts companies need to make preparations for anti-dumping measures, establish a set of standardized processes, and enhance their ability to resist risks.

Dealing with anti-dumping of auto parts should be a multi-pronged approach

In the international market, the best weapon to protect corporate interests is the law. However, language barriers often cause Chinese companies to be unclear about local laws, fail to understand international laws, and cause weak legal awareness and active response. “In many surveys, parts and components companies are often caught off guard by the rigorous review process at the beginning of the investigation and they have to retire,” said Zhang Zhiyong, an auto industry analyst.

The author understands that due to the unfamiliarity with import laws and policies, there is no professional legal team and trade talents to guide and support, and companies will not be able to cope with the investigation plan. "Familiarity and careful study of the importing countries' technical regulations, market environment and trade rules can actively and effectively respond to trade frictions," said Wang Li, the Institute of International Trade and Economic Cooperation of the Ministry of Commerce.

After being familiar with the law, it is necessary to have sufficient evidence to adequately respond to the investigation. Therefore, it is necessary to retain and accumulate the data in the production process. The author was informed that many small and medium-sized enterprises could not stand the verification during the investigation due to the existence of unclear accounts, incomplete original transaction documents and business transaction records, and irregular financial data. Documents such as production process costs and transactions are the main evidence for responding. The record of costs can prove that parts and components are sold at market prices, and standardized financial data can increase the likelihood of the company’s success. Even if the company loses, the actual data collected will also affect the extent of the tariff.

However, parts companies face the most difficult problems or expenses in the process of responding. Responding to the need to hire a professional team in the importing country, the resulting costs are unaffordable for companies with little export volume. The author learned from relevant persons that companies can rely on industry associations to hire expert teams to help them overcome difficulties, and the costs incurred are shared by the enterprises under investigation. At the same time, the cases of successful cases are studied, experience and procedures are summed up to provide defensive training to other companies, and to assist enterprises Safeguard against harm and enhance the ability to resist risks.

If political and other complex factors are involved, the importing country deliberately sets a barrier for the development of China's industries, which will require the state to promptly protect the development of domestic enterprises.

In addition, going abroad to invest and build factories overseas has also become an effective way for parts and components companies to avoid trade risks in recent years, such as Fuyao Glass and exquisite tires. "In addition to avoiding trade risks, overseas plants can also use local resources to increase exports, reduce logistics costs, and avoid exchange rate fluctuations." Zhang Zhiyong said, but only when the company develops to a certain scale can it have the strength to open up an international road. The core approach to avoiding anti-dumping is still to increase the overall competitiveness of products and take the path of differentiation. It cannot rely solely on low-cost advantages to snatch up the market.