Large paper machinery manufacturers continue to target foreign markets

　　Large paper machinery manufacturers continue to target foreign markets

　　Global paper machinery manufacturers will scramble to fill this market gap. However, according to the preliminary ruling on Friday, China's large paper machinery manufacturers are fully prepared for this result, and some of them are even expanding their production capacity.

　　Muhammad Amini, executive vice president of Taisheng Woodenware Co., Ltd. in Dongguan, China, said that the market share of Chinese companies will not decline because of this tariff ruling. He said that his company is indeed satisfied with the preliminary ruling.

　　In general, foreign regulatory agencies propose to impose nine different tariffs on Chinese paper machinery manufacturers. Different tariffs were imposed on seven large Chinese companies, and five of them escaped the fate of relatively high tariffs. Take Taisheng Company as an example, the tariff imposed on the company is only 4.9%. This means that if a foreign retailer wants to import a set of bedroom paper making machinery worth 500 foreign yuan from Taisheng Company, the retailer will pay 24.50 foreign yuan import duty for this. According to the standard price in the industry, the retail price of this papermaking machine in foreign markets is around 1,000 foreign yuan. Amini said that Taisen will strive to reduce the company's tariffs to zero for the rest of this year.

　　The company’s management has long been persuading foreign regulators to believe that the company is an enterprise operating in accordance with the laws of the market economy. In order to convince foreign regulators of this, Taisheng Company mainly imports wood from abroad. The company also stated that it paid open market prices for imported raw materials.

　　The relatively small import tariffs imposed on Chinese paper machinery means that large foreign paper machinery stores can continue to import large amounts of paper machinery from China. In the short term, the price of foreign paper machinery will not rise sharply.

　　However, the impact of the aforementioned anti-dumping rulings can only be fully revealed after a final ruling is made, that is, at least 6 months. During this period, those foreign paper machinery manufacturers who filed anti-dumping lawsuits stated that they would persuade foreign regulators to recalculate tariffs because they believed that the data submitted by some Chinese manufacturers were not accurate enough.

　　For those foreign paper machinery manufacturers that have filed anti-dumping lawsuits, they are now in a dilemma.

　　On the one hand, their lawsuits have angered many large foreign paper machinery retailers. Since paper machinery is imported from China, in many cases, foreign paper machinery retail stores pay import duties.

　　On the other hand, in the months leading up to the announcement of the ruling on Friday, concerns that China's paper machinery may be subject to large tariffs drove the production of paper machinery in other countries with low labor costs. Nowadays, with the rise of emerging powers such as Vietnam, foreign paper machinery manufacturers find that they have to face more competition.

　　Due to the slight increase in the price of paper machinery and the six-month uncertainty, foreign paper machinery manufacturers that file antitrust lawsuits may receive new orders. Coupled with the fact that they have been overwhelmed by imported products in the past few years, getting new orders is as timely as a long drought.

　　The Ministry of Commerce made a preliminary ruling last Friday to impose relatively small import tariffs on China's major paper machinery manufacturers. The preliminary foreign ruling is based on the written response of the Chinese company. Foreign regulatory officials are about to leave for China to conduct on-site inspections of Chinese factories. During the next 6 to 8 months of ruling review, foreign countries may further increase the tariff rate imposed on Chinese paper machinery manufacturers. The final ruling has a retrospective effect and can be traced back to the paper machinery exported by China this month.

　　Cao Yingchao, secretary-general of the China Paper Machinery Association, said that 7 companies including Taisheng, Zhenxing, Liantong, Waike, Deyuan, Ruifeng, and Starco were all included in the field investigation. Other companies will passively accept the weighted average tax rate of these seven companies.

　　For the surveyed companies, on-site investigation is a tough battle, but it is also an opportunity. Previously, they accepted surveys by filling out questionnaires. In the field investigation stage, they will provide foreign inspectors with accounts, production records, purchase and sales contracts, invoices, transportation, insurance and other documents to explain the production costs of the products face to face. If the acceptance is high, the unreasonable imagination of Chinese paper machinery enterprises by foreign parties will be corrected.

　　According to the preliminary ruling by the Ministry of Commerce of foreign countries, the blow to China's small paper machinery manufacturers is particularly severe. Foreign regulatory agencies impose a 198% tariff on bedroom paper machinery manufactured by small Chinese paper machinery manufacturers. The high tariff actually means that small Chinese paper machinery manufacturers will withdraw from foreign markets. It is estimated that Chinese small paper machinery manufacturers have The export value is only 240 million foreign yuan, accounting for only 20% of China's total export of bedroom papermaking machinery to foreign countries.