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Following the tires, auto glass has become another key "dust" for anti-dumping. 
Recently, the Ministry of Development, Industry and Trade of Brazil paid a courtesy note to the business office of the Embassy of Pakistan in the Ministry of Commerce and stated that it officially launched an anti-dumping investigation against auto glass originating in China. This is after September 2015, China Auto Glass once again encountered anti-dumping investigations in Brazil.
On June 29, 2015, Brazil launched an anti-dumping investigation against Chinese auto glass, but this investigation only lasted for two months.
It is reported that the investigation was finally terminated in September 2015 because the application lawsuit filed by Brazil at the time could not stand the verification and the Chinese manufacturers such as Fuyao Glass actively responded and defended the investigation.
Today, Brazil is making a comeback again.
Recalling the anti-dumping cases suffered by Chinese glass companies, in recent years, China’s auto glass industry has come from Canada, the United States,
Anti-dumping investigations in India, Australia, the Philippines, and South Africa.
From tires to glass, why are Chinese Auto Parts repeatedly subjected to "anti-dumping" difficulties?
Is China manufacturing too cheap, or is trade protection too serious?
Anti-dumping is a trade barrier set by the importing country of international trade out of the protection of local industry. The reason for initiating an investigation is often related to the development of the local market.
“In 2015, the automotive market in Brazil has been sluggish. New car sales have fallen more than 20% year-on-year,†said automotive analyst Zhang Zhiyong. The depression in the Brazilian auto market has led to a sharp drop in local auto glass demand.
Sun Fei, director of the Overseas Development Center of Chinese Enterprises, believes that Brazil's anti-dumping investigation against China is a common practice in international trade because of the protection of its own industries. Since China’s accession to the WTO, the more international trade flows, the more friction has become.
Of course, the main reason why China's parts and components have repeatedly encountered anti-dumping investigations is that its product prices are quite competitive, which puts pressure on the industries of importing countries.
"So far, China's exports of spare parts are still dominated by relatively low-tech products, and product prices are the main competitive advantage."
Zhang Zhiyong stated that the homogenization of products is serious, and excessively low-cost competition caused by over-development has brought hidden dangers to parts anti-dumping investigations.
In recent years, low-price competition has also caused Chinese tire companies to frequently suffer from "double opposition" and labeling laws.
“New companies are eager to open up their sales, and low-cost sales will leave evidence of investigations to importing countries,†said Zhang Hongmin, president of Shandong Rubber Industry Association.
However, in international trade, anti-dumping is often deliberately used by importing countries.
“In the actual situation, importing countries often use anti-dumping strategies to deliberately set obstacles to imported products and deliberately protect their own industries. Since then, this kind of protectionism has become a superficial legal form.â€
Zhang Zhiyong said that in order to break this pseudo-legitimate investigation, only active response is required.
Should you fully respond to the case or give up reasonably?
Positive prosecution and defense can have the possibility of victory. If not, it will fail. This is the attitude of the majority of respondents on whether or not to respond to anti-dumping complaints.
In past anti-dumping investigations, it has become commonplace for companies to give up responding due to their inability to afford financial resources and energy.
Wang Li, Ph.D., of the Institute of International Trade and Economic Cooperation of the Ministry of Commerce stated that for enterprises with less than one million exports, it is much easier to give up and adjust some markets than to respond.
Compared with losing the case, giving up responding will have more adverse effects. "According to the provisions of the WTO, abandoning responding means at least 5 years or forever losing the right to export to the country, and it may also cause chain reaction in other countries," said Fei.
Wang Li said: "Whether or not losing the case will permanently lose the market depends on the time and rate of tax collection."
Abandoning responding or not daring to respond to the losses will not only be a single enterprise, but will also trigger more countries to conduct anti-dumping investigations against more companies.
On the contrary, the impact is positive. Not only for companies to get justice, eliminating high tariffs, while providing valuable experience for other companies.
“In the long run, success has a positive effect on companies and industries. Successful cases will become references and experiences of more companies. The more successful the case, the more able to prove that the market operates under the economic system and that the industry can obtain a market economy. The fair treatment.†Zhang Zhiyong said that only by bravely protesting against it, and striving for it, can companies gain greater market space.
It is the first and most crucial step to actively respond to a multi-pronged approach to win the trade war. In addition, anti-dumping parts and components companies need to be prepared in multiple ways to enhance their anti-risk capabilities.
Damage to interests, and the best weapon for safeguarding rights is the law. However, language barriers often cause Chinese companies to be unclear about local laws, fail to understand international laws, and have caused their legal consciousness to be indifferent and responding to complaints is not positive.
“In many surveys, parts and components companies are often caught off guard by the rigorous review process at the beginning of the investigation, and they have to retreat,†said Zhang Zhiyong.
Wang Li said: "Be familiar with and carefully study foreign technology laws and regulations, market environment and trade rules, and actively and effectively respond to trade frictions."
Of course, there must be sufficient evidence to adequately respond to the investigation.
It is understood that due to the fact that many SMEs have unclear accounts, transactions in the original documents, business incomplete data and other circumstances, resulting in the investigation can not afford to check.
“The cost of production process and transaction documents should be retained. This is the main evidence for responding. Standardized financial data can increase the probability of the company winning the case.†Wang Li believes that even if the company loses, real data will affect the extent of the tariff.
However, the biggest problem faced by parts and components companies in the process of responding to the case is cost. Responding to the need to hire a professional legal team, SMEs can not afford this cost.
In this regard, Sun Fei said that companies can rely on industry associations to hire a team of experts to help companies deal with difficulties, and the costs incurred will be shared by the enterprises under investigation. At the same time, relevant industry associations should study cases of success and failure, sum up experiences and procedures to conduct defensive training for other companies, assist enterprises in seeking advantages and avoid disadvantages, and enhance their ability to resist risks.
In addition, overseas investment in construction has become an effective measure for parts companies to evade trade wars in recent years. For example, Fuyao Glass and Linglong Tire have all gone out of the country.
"In addition to avoiding trade risks, overseas construction can also use local resources to increase exports, reduce logistics costs, and avoid the risk of exchange rate fluctuations," said Zhang Zhiyong.
How can a parts and components company get out of the "anti-dumping" dilemma?