How should China’s wood flooring industry respond to international trade frictions?

After more than ten years of development, China’s wood flooring industry has been recognized by industry insiders at home and abroad as the ‘three big countries’, namely, large floor producing countries, large floor exporting countries, and timber importing countries.

Wood flooring production country

Wood flooring has grown by an average of 10%-15% since 1999. The total production and sales volume in 1999 was 67.8 million m2, and the total output to 2010 was more than 390 million. M2.

Timber importing countries

The 30-year reform and opening-up policy has promoted the rapid and stable development of the national economy, the people’s living standards have been continuously improved, and the demand for wood products has continued to grow. However, China’s timber supply still cannot meet domestic needs. Therefore, China 40% of wood is dependent on imports. According to incomplete statistics, imported wood and sawn timber reached 55.237 million m in 2010.

Wood flooring exporting countries

According to incomplete statistics, the annual growth rate of 15% has been increasing since 2002. In 2006 and 2007, China entered the international market at the peak of about 500,000 tons of wood flooring. In 2008, although the financial turmoil in the United States affected the decline in exports, it gradually stabilized in 2010, and the export of wooden flooring has reached 43.2. Ten thousand tons increased by 13.03% compared with 2009.

It can be seen from the above that in the development process of China’s wood flooring industry, the floor has reached an astonishing scale and level of export for more than 10 years. In the international market for export, it is dominated by the US and European markets. Statistics on China’s floor exports have accounted for nearly 20% of the international market share. To this end, at the same time of rapid development, China’s flooring industry is also facing international intellectual property, market and other levels of competition and trade barriers of various countries, but also must deal with the constraints of international law and regional law, these issues force our company When products are exported, they have to make correct thinking and response.

First, China’s international trade frictions encountered in the international market

1. Technical barriers–Intellectual property

On July 1, 2005, Unilin Beheer UnilinFlooring and Irish Industrial Company, two companies of the European-based Unilin International Group, filed a lawsuit against the US International Trade Commission (ITC) in violation of the US 1930 Tariff Act. Article 337 stipulates that the production and sales enterprises of 30 companies (including 18 Chinese enterprises) in the United States and abroad have adopted the patent technology for locks, and requested the ITC US International Trade Commission to immediately initiate a 337 investigation of related patents.

The case company responded after three years of long and expensive expenses. On January 10, 2007, the US International Trade Commission overturned all preliminary results and finally ruled that 38 global respondents were sold in the United States. The patent infringement of the floor was established, including 18 flooring companies in China (except Yan Jialong), which ended in failure. At the same time, ITC also issued a general exclusion order, the US Customs will then limit the import of relevant production according to the requirements of the order, the final decision will be issued, Chinese flooring companies will no longer be able to export any lock floor to the United States, for the United States and The stocked products will be paid a deposit according to the ITC’s prohibition order. If they are sold in the US market, they must pay the patent fee to Unilin, which will cause the Chinese flooring companies to pay an expensive US dollar patent fee each year.

2, trade barriers

Anti-infringement

National excuses China’s non-market economy system to contain Chinese flooring into the country, to protect domestic industries, since China entered the WTO Anti-infringement.

(1) On July 30, 2008, the Turkish Foreign Trade Agency issued the announcement No. 26952-2008/24 to make an anti-infringement final ruling on composite wood flooring originating in China. The announcement pointed out that the products imported from China constitute dumping and As a result, there is a causal relationship between Turkish domestic industry damage and dumping and loss. Turkey’s foreign trade decided to impose anti-dumping duties on the above products from the date of the announcement. The anti-infringement tax rate of responding companies is $1.60 per square meter, and the anti-infringement tax rate of other Chinese companies is $2.4 per square meter.

(2) On May 28, 2009, the Canadian Border Services Agency issued a notice to make a counter-subsidy ruling on the composite flooring originating in China.

(3) October 21, 2010 American Hardwood Flooring Merchants Union to the US Department of Commerce And the US International Trade Commission filed an application, accusing China’s 169 multi-layer parquet companies causing industrial damage to the US flooring industry, and proposed a dumping margin of 242.2% to initiate a ‘counter-subsidy, anti-infringement investigation’ on China’s solid wood composite flooring products. . Regardless of whether it was included in the list of 169 companies, as long as the company exported multi-layer parquet from the United States from April 1 to September 30, 2010, it was classified as a dumping target.

On December 31, 2010, the US International Trade Commission announced that the preliminary result of the ‘industrial loss’ of the multi-layer solid wood composite floor double-anti-counter case for China’s ‘beauty’ was decided to be a Chinese multi-layer solid wood composite flooring for the United States. The industry caused losses.

On May 20, 2011, the US Department of Commerce announced the preliminary results of the ‘anti-dumping case’ preliminary ruling:

Three compulsory enterprise sample survey

Zhejiang Yuhua Wood Co., Ltd. 0% tax rate

Zhejiang Liangyou Wood Industry Co., Ltd. 0% tax rate

Sanlin Group 10.88% tax rate

Other responding to 74 companies is 10.88%

Unreported enterprise penalty rate is 82.65%

Announced in 2011 On June 27, 2011, the preliminary ruling results were revised.

On October 12, 2011, the US Department of Commerce announced the final ruling on the multi-layer solid wood flooring produced in China:

The Ministry of Commerce confirmed that Chinese manufacturers/exporters used to Solid wood flooring is sold in the United States from 0 to 58.46%. The Ministry of Commerce also confirmed Chinese manufacturersA countervailing duty of 0.33 (minimum) and 26.73% was accepted.

In the investigation of anti-dumping duties, Zhejiang Yuhua Timber Company’s dumping tax was zero. Zhejiang Liangyou dumping tax is 3.98%.

Sanlin Group’s dumping tax is 2.63%. (The above three are all major exporters and one of the 30 double-committed companies of our association.)

74 Chinese manufacturers are suitable for a separate tax rate of 3.31%. All other Chinese manufacturers (multi-layer solid wood flooring) received a nationwide 58.84% dumping tax. (74 companies are members of our association, and their brands include Kangda, Longsen, Fudeli, Dazhuang, Jinqiao, Yihua, Fuma, Xinsihe, Simba, Beyak, Anxin, etc.) The other Chinese manufacturers (solid wood composite flooring) listed above are subject to a 58.84% dumping tax.

In addition, the Ministry of Commerce confirmed the unfavorable factual data of 124 companies (26.73%), because they did not respond as required.

Countervailing

From 2004 to 2007, Canada conducted a countervailing investigation on laminate flooring from China for three consecutive years in accordance with its Import Measures Act.

On October 21, 2010, the American Hardwood Flooring Association applied to the US Department of Commerce and the US International Trade Commission to accuse us of anti-dumping of multi-layer parquet and also accused of countervailing.

US Department of Commerce in March 2011 On the 23rd, the anti-subsidy preliminary ruling announcement was announced,

October 12, 2011 final ruling

Three compulsory spot checks companies

Zhejiang Yuhua Wood Co., Ltd. countervailing duty rate was 0%

Zhejiang Liangyou Wood The countervailing duty rate of the company is 0.33%

Shanghai Weijiajia and affiliated Tonghua Wood and (Shishou) Weijia Plantation 1.5% countervailing duty rate is 0%, and other Chinese companies participating in the countervailing investigation questionnaire are against The subsidy tax rate is 2.25%

Other Chinese companies that have not participated in the countervailing investigation questionnaire have 124 countervailing duty rates of 26.73% (by price)

II. Actively responding to reflections in international trade frictions

1. Recognize the situation and prepare for it. Dealing with trade friction is our long-term strategic task.

Through the reflection of the financial crisis, Europe and the United States are actively taking measures to reverse the economic efforts to protect domestic enterprises. In particular, Obama proposed to reshape the US manufacturing industry and to make the United States the world’s largest exporter. In order to protect domestic enterprises, the state will jointly suppress the rise of China, and the use of trade imbalances will increase the export restrictions on China (the flooring industry is no exception). According to incomplete statistics, by 2010, China’s export of forest products and 29 cases of dumping cases are excuses for China’s non-market economy as a premise that it is difficult to protect local products.

2. China continues to unite and hold high the banner of free trade. The flag is clearly opposed to trade protectionism.

3, in the face of international trade friction should actively respond to stubborn resistance to fight and fight, be good at struggle, the struggle is reasonable, beneficial, and festival.

4, the most fundamental response from trade friction is to adjust the industrial structure as soon as possible, enterprises should develop in the direction of deep processing, high value-added, high-grade, and brand-name.

5, in the export to mobilize the enthusiasm of importers and users to do a good job in international market research and improve early warning capabilities.

Release date: 2011/11/2 8:43:11


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