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Beware of risks! Launched 13 anti-dumping investigations against Chinese products within 10 days. Does this region want to fight a "trade war with China"?
Oct 17,2023
Recently, according to information released by the China Trade Relief Information Network, India launched 13 anti-dumping investigations against China in a short period of 10 days in late September.
Although India has always been the country that has implemented the most anti-dumping measures against China, it is rare in history to initiate anti-dumping investigations against China so intensively in a short period of time.
India Intensive Releases Anti-dumping Investigations
According to relevant information, from September 20 to September 30, in just 10 days, India has intensively decided to initiate 13 anti-dumping investigations against Chinese-related products.
The field of investigation involves transparent cellophane film, roller chain, soft magnetic ferrite core, trichloroisocyanuric acid, epichlorohydrin, isopropanol, polyvinyl chloride paste resin, thermos, vulcanization black, fasteners and other chemical raw materials, industrial parts and other products.
Huo Jianguo, vice president of the China World Trade Organization Research Association, said that when a country believes that products imported from other countries are lower than their own market prices and cause damage to related industries, it can initiate anti-dumping investigations and impose punitive tariffs. Measures to protect related industries in the country.
However, in practice, anti-dumping measures are sometimes abused and essentially become a manifestation of trade protectionism.
According to the inquiry, from 1995 to 2023, there were 1614 anti-dumping cases against China in the world. Among them, the top three complaint countries (regions) are India 298, the United States 189 and the European Union 155.
A few days ago, according to the Global Economic and Trade Friction Index released by the China Council for the Promotion of International Trade in the first half of this year, India, the United States and Canada were the main sponsors of China-related trade remedy measures in the first half of 2023, and have achieved full coverage from traditional labor-intensive industries to advanced technology fields.
In the anti-dumping investigation initiated by India against China, the top three industries are chemical raw materials and products industry, pharmaceutical industry and non-metallic products industry.
How do Chinese companies respond?
In recent years, China has become the number one victim of trade protectionism.
A statistical data released by the World Trade Organization shows that as of 2017, China has become the country with the most anti-dumping investigations in the world for 23 consecutive years, and the country with the most countervailing investigations in the world for 12 consecutive years.
In contrast, the number of trade restrictions issued by China is very small.
According to data from the China Trade Remedy Information Network, from 1995 to 2023, among the trade remedy cases initiated by China against India, there were only 12 anti-dumping cases, 2 countervailing cases, and 2 safeguard measures, totaling 16 cases.
Luo Xinqu, a law firm in Beijing Dacheng (Guangzhou), said that Chinese enterprises must respond to the lawsuit, otherwise it will be difficult to re-export to India after the implementation of the highest tariff rate, which is equivalent to losing the Indian market.
At the same time, he believes that the general period of anti-dumping measures is five years, but after five years, India usually continues to maintain anti-dumping measures through sunset review.
With few exceptions, India's trade restrictions will continue, and some anti-dumping measures against China have been in place for 30-40 years.
India wants to launch a "trade war with China"?
In response to this incident, Lin Minwang, deputy director of the South Asian Studies Center of Fudan University, said that one of the main reasons why India has become the country that has implemented the most anti-dumping measures against China is that India has continuously expanded its trade deficit with China.
Because in the Sino-Indian trade exchanges, for India, its trade deficit with China is constantly expanding, which makes the Indian government unilaterally believe that China is constantly earning India's money, while India has been suffering.
In addition, in recent years, Sino-Indian relations have been extremely unstable, and small-scale border conflicts have erupted continuously. It is very likely that the two countries will fight each other.
In this context, India subconsciously believes that China wants to use the money it earns against itself.
Earlier, the Indian Ministry of Commerce and Industry held a meeting attended by more than a dozen ministries and commissions at the beginning of the year to discuss how to reduce imports of products from China in order to solve the problem of "trade imbalance between China and India.
One of the measures is to increase anti-dumping investigations against China, the sources said. Some other analysts believe that the Modi government intends to take the initiative to launch an "Indian version" of the "trade war with China".
Lin Minwang believes that India's policy elite uphold the outdated obsession, that trade imbalance means that the deficit side "suffers", the surplus side "earned. Others think that by cooperating with the United States in economic, trade and strategy to suppress China, the goal of replacing China as the "world factory" can be achieved.
And these are not in line with the development trend of economic and trade globalization.
Lin Minwang believes that the United States has launched a trade war with China for more than five years and has not substantially affected Sino-US trade. Instead, Sino-US trade volume will reach a record of about US $760 billion in 2022.
Therefore, India has taken a series of trade measures with China, which are almost similar results.
Similarly, Luo Xinqu also believes that it is difficult to replace Chinese products with high quality and low price. She said, "According to our experience in India cases for so many years (Chinese companies responding to anti-dumping investigations), India cannot meet the needs of downstream industries only in terms of quality, quantity and variety.
Chinese products are of high quality and low price. Even after the (anti-dumping) measures are implemented, it is possible that the Chinese and the Chinese are still competing in the Indian market."
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