As recordable digital versatile discs (DVD+/-R) and recordable compact discs (CD-Rs) from China become new targets of European Union (EU) dumping charges, Chinese manufacturers brace themselves for yet another round of proceedings.

 

On August 5, the European Commission announced in The Official Journal of the EU that it will launch anti-dumping proceedings in relation to imports of DVD+/-Rs originating from the Chinese mainland, Hong Kong and Taiwan.

 

On August 6, the EU announced the initiation of another anti-dumping investigation into CD-Rs made in the Chinese mainland, Hong Kong and Malaysia.

 

"A dozen of big Chinese enterprises concerned are actively preparing for the suit," sources from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) said.

 

An official from the CCCME, who declined to be named, told China Daily the chamber is helping to prepare domestic companies for the investigations.

 

The chamber had held a meeting in April, warning domestic companies exporting recordable discs of the possible anti-dumping charges, the official said.

 

"We are studying the potential impacts of the case and how to cope with it," said a manager, surnamed Wang, from Guanyu Opt Tech Co Ltd, a recordable discs manufacturer in Shenzhen.

 

The two complaints against Chinese products were filed on June 24 by the Committee of CD-R Manufacturers, or the CECMA, which represents major manufacturers with 60 percent of the recordable discs production in the EU.

 

The CECMA alleged that the products concerned were being dumped in the EU market and were harming the local industry.

 

As part of the investigations, the EU might probe a sampling of companies.

 

Companies involved have to submit the required information to the EU within 15 days of the request.

 

For the DVD+/-R case, the EU will use Taiwan as a benchmark economy for the purpose of establishing normal value with respect to the Chinese mainland.

 

As for the CD-R case, Malaysia will be used.

 

The investigations will be concluded within 15 months.

 

"Chinese companies involved should actively respond to the suit in order to win more favorable treatment," said Xiang Dong, a lawyer for Beijing-based Allbright Lawyer's Office.

 

If a Chinese enterprise is eventually charged for dumping, it will be forced to pay high duties for its exports to European countries.

 

Statistics from the General Administration of Customs indicate that China has nearly 100 companies exporting recordable discs with a total value of over US$200 million.

 

"We find that Chinese companies are becoming more and more active in solving trade issues like dumping charges and technological barriers, and their abilities in coping with such issues are improving," Xiang said.

 

With its growing volume of foreign trade, China has been the target of the most number of anti-dumping charges in the world for nine consecutive years.

 

(China Daily August 9, 2005)