The EU, with Germany and Italy at the fore, may follow the US in imposing anti-dumping measures on Chinese furniture exports, including sofas and seats, according to reports. The contention is that they are selling at below domestic prices.
This blogger will try to follow the story, as these cases always fascinate: Chinese businessmen (or, increasingly, even the state-owned firms) willingly losing money?!
It is often argued in these disputes that Chinese producers sell at below their cost of production, but these arguments are normally based on third-country comparisons (e.g. Brazil) where cost structures are very different to China. This is because China is not regarded as a “market economy”, and it is thought that state intervention helps keeps costs unfairly low.
With the rise of the private sector, and in competitive industries like textiles, shoes and furniture, these arguments will become harder to sustain. The real question for the long term is how to make EU and US producers competitive and / or how to transfer these businesses into non-competing, higher added-value sectors.
Whatever happens, please let us know if you come across any Chinese producers who are selling their wares to you at a discount to the domestic price, let alone at below the cost of production. We may put in an order…
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See news source:
EU furniture makers seeking anti-dumping measures vs China imports …
Forbes – USA
Furniture makers are preparing to file an anti-dumping complaint to the European Commission, alleging China has been selling upholstered sofas and other seats …