Can the hottest domestic paper enterprises regain

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Whether domestic paper enterprises can regain confidence in exports to the United States

under the heavy pressure of the United States' imposition of countervailing and anti-dumping tariffs on Chinese coated paper, the fate of domestic paper enterprises involved in the case to the U.S. market appears polarized. On October 12, trade officials from China and the United States held consultations on the trade dispute over coated paper. In September, the Chinese government has put forward a consultation request under the WTO Dispute Settlement Mechanism on the preliminary determination of countervailing and anti-dumping of coated paper by the United States. The latest statistics of the Customs show that in the first four months of this year, China exported 274000 tons of coated paper, worth US $230million, an increase of 9.9% and 25.6% respectively, of which 80000 tons were exported to the United States, worth US $65.54 million, a decrease of 20.3% and 10.7% respectively

the anti subsidy and anti-dumping sanctions taken by the United States against the copper low-frequency fatigue testing machine originating in China, which operates on the principle of electrohydraulic servo, have had a great impact on the competitiveness of domestic coated paper in the U.S. market

the government intervened in a high-profile way to tell you today about the use steps of the metallographic microscope and the calibration steps of the equipment

just before the United States is about to announce the final anti subsidy and anti-dumping tariff rates for coated paper originating in China, China asked the United States to correct the practices that violate the rules of the world trade organization

On October 12, trade officials from China and the United States held consultations in Geneva on the coated paper trade dispute between the two countries. During the consultations, China questioned the consistency of the US countervailing and anti-dumping preliminary determinations on coated paper with the WTO rules, and asked the US side to seriously consider China's concerns and correct its practices that are inconsistent with the WTO rules. The two sides also clarified some facts in the case and agreed to continue to maintain contact

since November last year, the United States has successively launched countervailing investigations and anti-dumping investigations on Chinese coated paper products. In March this year, the U.S. Department of Commerce said it decided to apply the Countervailing Law to China and impose a countervailing tax of up to 20.35% on coated paper exported from China to the United States to offset the impact of government subsidies. After two months, the United States decided to impose an additional charge of up to 99 yuan on coated paper originating in China, which can realize material testing in all aspects of tension 65% anti-dumping duty

after the United States decided to launch a combined anti subsidy and anti-dumping investigation on China's coated paper products exported to the United States, the enterprises and chamber of commerce associations involved in the case reacted strongly, and the Chinese government also paid high attention to it

the Ministry of Commerce has stated that China regrets the decision of the United States to file a countervailing investigation on Chinese coated paper, which is neither in line with the relevant rules of the WTO nor in violation of the relevant laws and regulations of the United States. On the one hand, the United States adopted a discriminatory alternative country approach in the anti-dumping investigation, on the other hand, it launched a countervailing investigation against Chinese products, which has constituted double discrimination against Chinese products. The Chinese government opposes the unfair and unfair practices of the United States in its anti-dumping and countervailing investigations against Chinese coated paper

on September 14 this year, the Chinese government made a request for consultation under the WTO Dispute Settlement Mechanism on the preliminary determination of the United States' countervailing and anti-dumping measures against coated paper. This is the first time that China has independently resorted to the WTO on Sino US trade issues

enterprise polarization

although the Chinese government is actively resolving trade disputes through the multilateral mechanism of the WTO, in the face of the double high taxes imposed by the United States, domestic paper enterprises are really unbearable, and the fate of the U.S. market has also begun to differentiate

statistics show that in 2006, China exported 224million US dollars of coated paper to the United States, about 270000 tons, mainly produced by Chenming paper, a listed company, and Jindong paper, a joint venture of APP group in China

in addition, sun paper, Yangzhou tianzhang paper, app jinhuasheng paper and other companies also have certain production capacity

according to the U.S. tax on Chinese coated paper, Jindong paper and Chenming paper, two domestic enterprises with large exports of coated paper, receive temporary countervailing duties of 20.35% and 10.90% respectively. If superimposed with the 23.19% and 48.00% anti-dumping duties obtained by the two companies, the tax rates are as high as 43.54% and 58.90%

after being taxed heavily, both Jindong paper and Chenming paper said they had hired lawyers and would actively respond to the lawsuit. But just before the final decision was announced, recently, a senior manager of Chenming paper revealed to the media that the company had decided not to respond to the lawsuit and decided to abandon the U.S. market

insiders believe that among listed companies, Chenming paper has the largest export volume of coated paper, and the United States is also the main export market of Chenming paper. In 2006, Chenming paper produced 399000 tons of coated paper, sold 387000 tons, and exported about 60000 tons of coated paper to the United States, accounting for 15% of the total. If calculated according to the high tariff of 58.90%, Chenming Paper's export to the United States will face the pressure of substantial price reduction. If the enterprise is unprofitable, it will lose its competitiveness in the international market, and the enterprise will no longer accept the order of American coated paper, so it is inevitable to withdraw from the American market

Chenming paper decided to withdraw from the U.S. market with its own unavoidable difficulties. However, Jindong paper still insists

as the largest exporter of coated paper to the United States, Jindong paper is still actively responding to the lawsuit. According to the staff of Jindong paper in charge of anti subsidy and anti-dumping affairs, the US side is expected to announce the final ruling this month

fight for the right to fair competition

for domestic coated paper enterprises, in the past two years, the United States has become the main destination for China's coated paper exports. From 2005 to 2006, China's export of coated paper to the United States increased by 1.5 times, but the total export growth was only 1 times. Due to the continuous expansion of production capacity, export has become the choice for domestic coated paper enterprises to alleviate the sharp expansion of domestic production capacity. According to statistics, the domestic consumption of coated paper in 2006 was 3.32 million tons, while the output reached 3.8 million tons

experts from the China Paper Association said in an interview that the sharp expansion of exports foreshadowed the United States' continuous proposal to impose countervailing duties and anti-dumping duties. To change this situation, domestic paper enterprises should step up efforts to improve their internal skills, further reduce costs and improve their ability to deal with trade frictions through technological innovation, equipment upgrading and scale-up. At the same time, enterprises should further subdivide the terminal market and demand, so as to design and produce more differentiated products to meet market demand. More importantly, the development of overseas markets cannot rely solely on the market of a country, but should open up new avenues. Only in this way can enterprises be competitive. Taking Jindong paper as an example, its single unit production capacity and single plant scale are the largest in the world. Chinese coated paper manufacturers should be able to transfer part of their sales to other foreign markets

according to the report "analysis of the operation of China's paper industry in 2006" issued by the China Light Industry Federation, how to resolve international trade frictions in the next few years has become a key factor for the paper industry to stabilize the development of data processing. Faced with the increasingly clear decision of the two major coated paper export leading enterprises to the U.S. market, more enterprises are still waiting for the final ruling. The Chinese government's request for consultation under the WTO Dispute Settlement Mechanism on the US countervailing and anti-dumping preliminary determination of coated paper seems to reassure domestic paper enterprises that the government hopes to resolve this trade dispute through the multilateral mechanism of the WTO in order to obtain the right of fair competition for enterprises

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