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Dumping cases likely to increase

Senior official warns there will be more investigations as the economy expands

Investigations into allegations of Chinese products being dumped on foreign markets are likely to increase, a senior mainland official has warned.

Sun Zhenyu, China's ambassador to the World Trade Organisation, told Xinhua that with exports growing steadily the country would face a more challenging trade environment due to a corresponding rise in trade disputes.

China has been the subject of 573 anti-dumping probes from 34 countries and regions since 1979, with 49 cases last year.

The latest trade spat involves an allegation that more than 1,000 mainland manufacturers have dumped more than US$1.2 billion worth of bedroom furniture on the American market. Washington imposed anti-dumping duties of nearly 200 per cent on these companies earlier this month.

It is the 57th time mainland manufacturers have been accused of dumping products - ranging from ironing boards and brake rotors to crawfish tail meat and televisions - on the US market.

Mr Sun said that to deal with the increasing number of anti-dumping cases against Chinese products, joint efforts were being undertaken with governments, enterprises and their associations.

'This mechanism has played an important role in encouraging companies involved [in disputes] to appeal and changing unfavorable rulings previously made [against the mainland].'

Mr Sun said the central and local governments would continue to strengthen their role in solving anti-dumping cases by providing guidance to the companies involved and enhancing contacts and negotiations with other countries.

'The focus will be on unfair and discriminatory policies and investigations targeting Chinese products in foreign markets,' he said.

But he believed affected companies should play a leading role in anti-dumping investigations, such as co-operating with inquiries. Export companies should also pay more attention to the quality of their products rather than depending solely on low prices.

'[Companies] should enhance their awareness of self-protection and the sensitivity towards early warning information regarding export products, and properly adjust export scales and prices,' he said.

However, Jin Yan , a Shenzhen lawyer, said the government had a more active role to play in anti-dumping cases.

'It will not work if companies fight for themselves. The government should enhance communications with relevant foreign governments and consider taking necessary steps, including carefully targeted retaliatory measures, if needed.' Mainland manufacturers were more vulnerable to dumping charges because the country was still classified as a non-market economy, he said.

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