China-Europe Data card war hard to eliminate

Source: Internet
Author: User
Keywords War Central Europe
To ensure that Sino-US trade relations still cater to domestic hardliners?  US Treasury Secretary Timothy Geithner is hesitating.  This reporter Tan Yu ma Huan intern Luchand from Guangzhou the European Union recently launched a "three evils" survey to make China's relevant enterprises to enter the European market again face uncertainty. The European Commission announced September 16 that it had launched a countervailing investigation into the data card products imported from China (wireless network card). This is an unprecedented triple survey.  2 months before the EU launched its countervailing investigation, the European Union launched anti-dumping and safeguards investigations into China's data-card products, along with the current countervailing investigation, the first time the European Union conducted a triple survey of the same product exported by China.  The center of the whirlpool revolves around a data card manufacturer named option in Belgium, China's data card products in the European market, and the company's market share has reached a marginal position.  Triple Investigation unprecedented option company's representations led the EU to launch a countervailing investigation, the industry has 90% market share of Huawei, ZTE two companies to the forefront. In this option, the subsidy referred to in the petition refers mainly to the large amount of policy loans provided by the Chinese National Development Bank and the National Import and export bank to Huawei and ZTE two companies.  The petition also argues that government subsidies have been formed as a result of the government's aggressive intervention in banking, which has resulted in interest rates for Chinese commercial banks falling below market rates.  At the same time, China's lending support to the information industry has also become an example of subsidies.  For example, in 2004, the import and export bank gave Huawei 600 million yuan export credit, 2004 State Bank agreed in the next five years to the Huawei loans 10 billion yuan for global market expansion, 2009 Bank of China to provide ZTE 15 billion U.S. dollars in loans, the same year ZTE received 10 billion U.S. dollar credit support of import and export banks. Pote, a spokesman for option company, also issued a statement saying, "according to EU laws, the sales practices of these Chinese competitors are illegal."  "China's Ministry of Commerce has expressed strong dissatisfaction with the European Commission's approach: The three surveys are an abuse of trade relief measures by the EU only to protect one business in a particular Member State, which is extremely rare in trade relief practices among WTO members."  In this respect, China's electromechanical products import and export Chamber of Commerce has issued an early warning information, the EU's China Data card countervailing Survey was listed in the first place.  2 months ago, the European Union had launched two anti-dumping and safeguards investigations into China's data card, and it had complained to the European Union of option companies in Belgium. The European Commission received complaints that there was prima facie evidence to support the initiation of anti-dumping investigations.  Option also requests the imposition of a mandatory customs registration for wireless cards imported from China, which will be applied retroactively to products that have been registered and imported in the future. Previously, the Ministry of Commerce has disclosed that the adjustmentThe amount of money involved in the investigation is as high as 4.1 billion dollars. According to the Chinese electromechanical products import and export Chamber of Commerce related personage to the time report, the amount involved is not completely clear, not to 4.1 billion U.S. dollars, but the impact of the investigation of the commodity valuation at least 2 billion U.S. dollars.  Although the amount is different, but still reached the foreign survey of China's High-tech exports the highest value. Li Jiguang, Ph. D. of China's WTO Research Institute, said that Anti-dumping and countervailing measures are against unfair and unfair competition, and that safeguards are, even if they are fair, brought to the investigation.  In his view, there have never been three measures in the same time, this is mainly a demand for their domestic protection, the EU used the most is anti-dumping, the other uses less, the United States trade relief to the EU has a certain hint.  Huawei ZTE actively responded to the most affected Huawei, ZTE two companies are actively responding to the "three evils" investigation. "Option companies ' allegations of dumping and subsidies are untrue, and we deny our allegations of dumping and illegal subsidies."  Huawei related people to the Times weekly reporter said. Huawei produced its first USB modem in 2005 and launched it in Europe in 2006, the person said.  Huawei's success is based on successful product innovation and their accurate forecasts of European 3G market trends and adequate preparation.  And, Huawei said, the EU's unprecedented triple survey will have a serious negative impact, and once the EU's use of trade relief measures will seriously damage the interests of European telecoms operators and consumers, Huawei will actively cooperate with the EU to conduct the investigation and will take all legal measures to refute their unreasonable accusations. ZTE has also told this newspaper that ZTE has invested heavily in many European countries and employs a large number of local staff, and will continue to assist European operators in building efficient telecommunications networks, but ZTE does not exist in the EU legal sense of dumping and subsidized behavior, they rely on innovative technology,  Highly customized products and excellent service to win the market and customers.  According to ZTE insiders, ZTE has basically completed anti-dumping and security measures to investigate the relevant questionnaires to prepare the questionnaire, and commissioned a lawyer to the European Commission to submit the relevant defense opinions. However, not all the affected Chinese companies are involved in the defence.  July 5, China's electromechanical products import and Export Chamber of Commerce held a 8-hour response meeting with more than 20 involved enterprises to discuss countermeasures, the Chamber of Legal Services director Liu Huijuan clearly said that will be a plea. In fact, when the EU anti-dumping investigation began, the Chamber of Commerce in the case of hundreds of companies may be involved in the notification, held a lawsuit, but the data card business only 20.  Relevant officials believe that there are some business owners may not be too late to attend, also do not rule out some of the smaller foundry enterprises to evade litigation. In accordance with the relevant procedures of the European Commission, Chinese companies need to submit a preliminary report within 15 days, including product-likeConditions and management and other details. Within 37 days, the enterprise will also submit more detailed information, even including subsidiaries or affiliated enterprises for each batch of exports of paper.  In these 37 days, the EU can launch safeguards at any time, raising temporary tariffs to protect the interests of local businesses. However, companies are required to separate the defence of individual tax rates, and if they waive their defences, they are likely to encounter temporary tariff adjustments from the EU.  An industry insider told The Times reporter, the waiver is not due to stage fright, defense procedures are more complex, some smaller enterprises lack of coping experience, and some enterprises do not have a small amount of business, may give up the market; In addition, due to procedural requirements, it is necessary to submit detailed information to the EU, some trade secrets may also be therein.  In addition to ZTE, Huawei has been clearly in the lawsuit, the previous reports, Benevolence Treasure's two subsidiaries "Benevolence Treasure Network" and "Ren Bao electronic" will also start a plea.  Option option in the Whirlpool Center The company is now in a worse position, with market share already at the edge of the market, saying that, in 2006, option once occupied a very high market share, but then the market share plummeted and is now on the verge of 5%. A person familiar with the news told The Times weekly reporter, when Chinese enterprises to enter the European data card market, a company related to the high-level has negotiated with option, but the option is that China's data card business market share is too small, simply ignore. Subsequently, the top Chinese company said the company would develop the European market alone.  Then, less than a year later, option has been squeezed to the edge of the market. According to the Advisory Body Frost & Sullivan to the data provided to this newspaper, 2009, the global data card sales around 80 million, Huawei data card shipments up to 35 million, occupy nearly half of the. In many European countries, Huawei data card market share of more than 70%.  ZTE also performed well in the data card sector, with its data card shipments of more than 20 million worldwide in 2009, more than 200% in 2008, and the fastest growth in the world.  In fact, option is a Belgian-listed company with 400 employees, and the wireless data card is its only pillar business, with data showing that sales rose 5 times-fold in 2003-2006, and 300 million euros in 2007 for the full year.  The reason for the company's change was that Chinese companies were entering the European market, while Huawei and ZTE two companies quickly seized the market for data-card operators, while their foundry operations were also taken by Chinese companies. Option's decline is fast and has its own problems.  option on USB interface Data card unresponsive, this product is the introduction of the European market by Chinese enterprises. ZTE related personage to time weekly reporter said, the data card is the High-tech communication product, along with 3G Technology'sRapid development, product market changes very quickly, and the form of diversification, and the ability to provide a full range of diverse products, to meet and respond to the user's increasing demand for customized and delivery cycle, has become the operator to select a supplier of important factors.  Moreover, option has a disadvantage on the cost, and in the manufacturing industry has been selected as a Chinese enterprise-Jiangsu Czech, which also shows the side of the manufacturing costs lower. "Manufacturing costs and price advantages are the killer of Chinese manufacturers."  Frost&sullivan analyst Ti Yudong told The Times weekly that Huawei and ZTE's two data cards were priced at about 20% lower than the Belgian option, which, after losing market, was turning to market access. "option has outsourced 80% of its data card products to the company in early 2008, which means that the EU does not have a real data card manufacturer and therefore does not qualify for a complaint."  Liu Huijuan, head of the Legal Services Center of China's electromechanical exporters, told the media. It is also questioned by Huawei, a source of Huawei, who told the newspaper that it was hard to understand what option was accusing Chinese manufacturers of, since option itself had already outsourced all its data-card products to Chinese production. "We question the motives behind it in making this accusation. ”
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