The cabinet tariff rate is 260%. How to break the US anti-dumping against Chinese furniture
I often see an analysis, post it today for everyone to see.
In 2004, the United States had anti-dumping against China’s solid wood bedroom furniture. Although the excuse was to protect the domestic manufacturing industry in the United States, more than ten years have passed. Facts have proved that the solid wood bedroom furniture in the United States did not "survive" because of US tariff protection. On the contrary, the import volume is increasing.
Recently, the United States has also targeted China's cabinets, bathroom cabinets, and mattresses, and has to conduct anti-dumping and countervailing measures.
Anti-subsidy and anti-dumping against China's wooden cabinets and bathroom cabinets:
Appealing unit: American Cabinet League
Required tariff rate: 260%
reason:
1) Chinese industries have received controllable subsidies from 38 government projects of the Chinese government.
2) Products imported from China have taken away a large market share in the United States, and the import volume has grown rapidly.
January-November 2017
$3.62 billion
January-November 2018
US$4.0 billion
Anti-dumping against mattresses:
Appealing unit: The Union of American Mattress Manufacturers Organization
Required tariff rate: 150%
Reason: Chinese products are unfairly traded in the US market, which has caused substantial damage to the US mattress market.
From January to November 2018, the fixed tax price of imported mattresses in the United States increased by 20.6%, of which the fixed tax price of imported mattress components rose by 23.7%.
The current double-reverse adjustment of mattresses, cabinets, and bathroom cabinets was originally scheduled to be made by the U.S. International Trade Commission before April 22.
This is just taking the form.
The next is the preliminary ruling of the Ministry of Commerce.
-Countervailing duty: preliminary ruling on May 30, final ruling on August 13.
-Anti-dumping duties: A preliminary ruling will be made on August 30, and a final ruling will be made on October 28.
· If the Ministry of Commerce determines that there is dumping or subsidies, it will instruct the Customs and Border Protection Bureau to begin collecting deposits from all US companies that import these products from China.
· Look-back period: the products shipped 90 days ago after the preliminary tariff ruling on the mattress (I don’t know if the same applies to wooden cabinets and bathroom cabinets) will be taxed retroactively. If the tariff is announced on May 27, then 90 The "lookback window" of days will start from February 26.
·Emergency: In order to avoid tariffs, a large number of products have been shipped to the United States in the past few months. Then, the complainant can choose to file an appeal for an emergency within 20 days (before May 6) before the initial tariff is imposed. This means that importers who have import records 90 days before the implementation of the initial tariffs will face the risk of retrospective taxation.
After talking about a lot of US practices, in fact, any product from China that exports to the United States in large quantities will definitely be suppressed by the United States. This is already their national strategy.
Lin Zuoxin Professor of Beijing Forestry University Former Chairman of Asian Furniture Federation
The United States’ anti-dumping against China has benefited the most from Vietnam. I’m not sure about other industries. The furniture industry started in Vietnam when the United States began its anti-dumping of solid wood bedrooms in China in 2004. Vietnam’s furniture industry is getting bigger and bigger now. The total export volume to the United States is about ten percent of China's.
Vietnam has only a population of less than 100 million people and a small country. It suddenly accepts a large number of companies transferred from China. The government does not need to attract investment. Foreign resources come from Taiwanese companies in China. Taiwanese companies are used to it. To be an OEM, so "instinct" is to chase low-wage, low-cost places to open factories.
Most of the companies from mainland China that moved to Vietnam were due to anti-dumping in the European and American markets. However, since mainland companies also went, land, wages, etc. have also risen.
The recent market in Vietnam is:
· Land: An acre of land costs about RMB 500,000, which is more expensive than many places in China. There are various types of land in formal industrial zones and "privately established" industrial zones.
· Workers: Everyone thought that the wages in Vietnam were much lower than that in China, so they rushed there. Now their monthly wages are already more than 3,000 yuan. In a few days, it will definitely exceed 4000, which is similar to wages in many parts of the mainland. However, the quality of Vietnamese workers is not comparable to that of mainland workers.
-Productivity: A mainland worker is equivalent to the production efficiency of 2-3 Vietnamese workers.
——Work attitude: Vietnamese workers go on strike at every turn. After receiving their wages, they will return to work after spending. Now they even require daily wages. They are paid after get off work every day. If they have money to spend, they may not come to work tomorrow.
——Sources of workers: In many areas, the workers are contracted by the underworld. There are local underworld, Taiwanese Gangs, Mainland Gangs... Being a businessman to deal with the underworld is quite uncomfortable.
Vietnam has such a large population. Newly-entered enterprises in the mainland can only rob workers with high salaries, especially skilled workers, so the demographic dividend has long since disappeared.
·Society: In the early stage of attracting investment, government departments were very active, and corruption was also handled. Now that so many foreign companies come automatically, officials are flying their tails. Corruption does not necessarily take care of things, at least, it slowly drags on time.
The entire Vietnamese society is not very friendly to the Chinese. I don't know why. In the 1960s and 1970s, the Chinese helped the Vietnamese resist the invasion of the French and Americans and tried their best, but in return they were hostile to the Vietnamese.
To the Americans and Japanese who once slaughtered them, they greeted them with smiles and even bowed their knees. I think that the Chinese must learn from the Japanese and Americans, and the beaten must be respected by the beaten. It should be very awkward to invest and set up factories in such an anti-China social environment.
· Language: Vietnamese speak Vietnamese, and many local Chinese can act as translators. However, my experience is that translators often make ghosts in it. Even if they don't, it is very inconvenient. Translation is indispensable everywhere.
However, even with so many unfavorable factors, many Chinese companies have to move their factories to Vietnam to avoid US tariffs. Of course, some have already failed. With these failed experiences, Chinese entrepreneurs have also summed up a set of "strategies".
· Keep the core production in the country, especially the core technology, so that domestic factories can take the opportunity to streamline and upgrade.
·Original products, change the production process, and even change the structure to adapt to the new situation.
·Do final assembly, or simple processing and packaging in Southeast Asian countries such as Vietnam.
Chinese businessmen are very shrewd and cautious. They will not uproot the roots and move all domestic production to Vietnam or other countries in Southeast Asia. Americans have policies, and Chinese have countermeasures. After Vietnam is filled with Chinese, more companies will go to places such as
Malaysia, Myanmar, Cambodia, Thailand and Laos, and gradually become the assembly and packaging workshops of the branch of China's main factory, receive the local certificate of origin, and still export to the United States.
The Americans’ tariffs and anti-dumping activities are actually only causing Chinese companies to increase troubles and increase costs. They will not play a key role. These increased costs will gradually be paid for by the Americans. The experience of the past ten years has proved that after anti-dumping, the industry has not returned to the United States, but moved to another place or imported from abroad, and whether it is Vietnam, Thailand, Malaysia... or the Chinese behind it.
The benevolent see the benevolent and the wise see the wisdom.
