EKS(Xiamen)Precision Industry Co., Ltd
Security Environment of Hardware Industry Less Optimistic
May 30, 2016
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At present, security environment of hardware industry is less optimistic in China. Chinese hardware industry is faced with severe trade friction situation, mainly showing the following features.
1. Trade friction occurring frequently
In 2015, trade friction encountered by Chinese hardware industry still kept frequent situation. According to 15th stipulation of China's Accession Protocol, non-market economic method will lose efficacy by December 11, 2016. After the stipulation losing efficacy, it will be more difficult that foreign competitors use surrogate method to impose high anti-dumping duty on Chinese competitors. In addition, China's Accession Protocol did not set expiration clause on replacing base price used in anti-subsidy investigation. Facing with new trends after 2016, some foreign competitors came up with more applications of anti-subsidy investigation in 2015.
From January to December, 2015, some trade great nations strengthened trade remedy investigations and law enforcement, enhancing protection on their own industry. Based on information from website of Commerce Department, trade frictions that Chinese hardware products involve was more than the same period of 2014. Hardware industry has already become light industry having relatively more trade frictions for continuous years. Industrial security situation is not neglected.
2. Involved range of trade friction expanding continuously
According to information from website of Commerce Department, in 2015, trade remedy investigation of Chinese hardware industry included building hardware, daily hardware, stainless steel products and kitchen equipment, zipper, shower equipment, locks and other industries. Based on TBT announcement launched on official website of WTO, recalls that hardware products involved mainly focused on lighter, safe box, blower, gas cooker, cooking utensils, tools, building hardware and daily hardware, stainless steel products and other hardware products. Trade frictions hardware industry and products involving were more obvious than previous years. Involved range of trade friction continued expanding.
3. Double negative survey showing normalization
In recent years, Canada, the U.S., Australia and EU are abolishing the tradition that does not carry out anti-subsidy investigation on non-market economy countries in succession, carrying out anti-subsidy investigation on products exported from China without restraint. India and other newly emerging economies also join in. On Chinese main export market, carrying out double negative survey on Chinese exported products has already become normalization, except for single anti-dumping investigations.
Anti-dumping, anti-subsidy and other trade remedy investigations are part of international business competitions and have already become normalization. If products are exported to abroad, Chinese hardware manufacturer should prepare for double negative survey at any time.
In the future period of time, security environment of Chinese hardware industry is less optimistic. Trade frictions frequently occurring will become normalization. Chinese hardware export enterprise should pay high attentions to competitive situation of export market and situation of competitors for anticipating related risks and preparing in advance. Besides, enterprise should employ international trade lawyers having rich experience for analysis and preparation, in case of facing passively, reducing cost and avoiding lost.
In short, export enterprises will be faced with challenges from developed countries and developing countries in the future, therefore they have to make full preparation and actively facing with trade frictions.
1. Trade friction occurring frequently
In 2015, trade friction encountered by Chinese hardware industry still kept frequent situation. According to 15th stipulation of China's Accession Protocol, non-market economic method will lose efficacy by December 11, 2016. After the stipulation losing efficacy, it will be more difficult that foreign competitors use surrogate method to impose high anti-dumping duty on Chinese competitors. In addition, China's Accession Protocol did not set expiration clause on replacing base price used in anti-subsidy investigation. Facing with new trends after 2016, some foreign competitors came up with more applications of anti-subsidy investigation in 2015.
From January to December, 2015, some trade great nations strengthened trade remedy investigations and law enforcement, enhancing protection on their own industry. Based on information from website of Commerce Department, trade frictions that Chinese hardware products involve was more than the same period of 2014. Hardware industry has already become light industry having relatively more trade frictions for continuous years. Industrial security situation is not neglected.
2. Involved range of trade friction expanding continuously
According to information from website of Commerce Department, in 2015, trade remedy investigation of Chinese hardware industry included building hardware, daily hardware, stainless steel products and kitchen equipment, zipper, shower equipment, locks and other industries. Based on TBT announcement launched on official website of WTO, recalls that hardware products involved mainly focused on lighter, safe box, blower, gas cooker, cooking utensils, tools, building hardware and daily hardware, stainless steel products and other hardware products. Trade frictions hardware industry and products involving were more obvious than previous years. Involved range of trade friction continued expanding.
3. Double negative survey showing normalization
In recent years, Canada, the U.S., Australia and EU are abolishing the tradition that does not carry out anti-subsidy investigation on non-market economy countries in succession, carrying out anti-subsidy investigation on products exported from China without restraint. India and other newly emerging economies also join in. On Chinese main export market, carrying out double negative survey on Chinese exported products has already become normalization, except for single anti-dumping investigations.
Anti-dumping, anti-subsidy and other trade remedy investigations are part of international business competitions and have already become normalization. If products are exported to abroad, Chinese hardware manufacturer should prepare for double negative survey at any time.
In the future period of time, security environment of Chinese hardware industry is less optimistic. Trade frictions frequently occurring will become normalization. Chinese hardware export enterprise should pay high attentions to competitive situation of export market and situation of competitors for anticipating related risks and preparing in advance. Besides, enterprise should employ international trade lawyers having rich experience for analysis and preparation, in case of facing passively, reducing cost and avoiding lost.
In short, export enterprises will be faced with challenges from developed countries and developing countries in the future, therefore they have to make full preparation and actively facing with trade frictions.
