Long-term vision: answer anti-dumping, win a beautiful battle

2022-05-05 0 By

In the last section, we told two stories about Fuyao Glass, and felt cao Dewang’s flexible business style and generous cooperation concept reflected in his business operation.Today, in this section, we will talk about a milestone in the history of Fuyao Group’s development: we won two anti-dumping cases with Canada and the United States on automobile glass, which is known as “The first anti-dumping case of China’s entry into wto”.At the end of February 2001, Mr Cao received a report from a gleason’s staff that PPG had joined forces with two other American glass companies to file a suit against China for glass dumping. Fuyao’s American firm said the Commerce Department should agree.Putting down the emergency call, Cao immediately called a meeting of senior executives for the next morning to discuss countermeasures.At that time, there were two opinions. One was that the lawsuit should not be filed, and the product should be sold domestically. Anyway, the profit of domestic sales is higher than that of foreign sales.Another opinion is to actively respond to the lawsuit, because give up the lawsuit, is equal to give up the foreign market, fuyao will only develop in the future in China?Cao Dewang agreed with the latter opinion and decided to organize the strongest force to respond to the lawsuit, and guaranteed to win the case.If Fuyao gives up the international market now, it will not be able to establish itself in the domestic market in the future.As a Chinese enterprise, Fuyao not only needs to consider its own development, but also represents the dignity of the country.Cao Dewang set up a leading antidumping group on the gain’s wall, of which His eldest son, Cao Hui, and A gleason’s sales department, Huang Zhongsheng, were deputy leaders.Cao Hui is responsible for the first-line operation in the United States, employing the best anti-dumping lawyers in the United States, while Huang Zhongsheng is responsible for the collection of litigation materials in China as backup.In March of the same year, the U.S. Department of Commerce launched an investigation.In April, the U.S. International Trade Commission issued a preliminary ruling that ARG windshields exported from China had caused material injury to the U.S. industry by being sold cheaply in the U.S. market.In September, the US Department of Commerce preliminary ruling, to Fuyao glass and other five Chinese companies ruled that the dumping rate of 9.79%, other companies did not respond to the lawsuit, the dumping rate is as high as 124.5%.Fuyao glass provided the relevant information, launched a complaint.In March 2002, the US International Trade Commission (ITC) concluded that ARG windshields imported from China were sold below fair value in the US and caused material injury to the US industry.Later, the US Department of Commerce made a final ruling, the dumping rate of Fuyao Glass was determined to be 11.8%.Other Chinese companies accepted the decision, but not Fuyao.The Piaoyao is well prepared.Since its establishment, the anti-dumping team has been working day and night, eating and sleeping in the office, sorting out the data piled up in a room.Moreover, Cao dewang actively sought professional support.He set up a China Anti-dumping research institute at the University of International Business and Economics in Beijing, with a professional academic committee, council and enforcement department.This research center is a collection of anti-dumping in China’s major trading partners of anti-dumping laws, regulations and administrative rules, as well as the relevant WTO anti-dumping cases and legal documents, in-depth study of dumping and anti-dumping laws, economic problems, and the experiences and lessons from the foreign companies to deal with anti-dumping, and consulting services for government departments and enterprises to provide targeted,Let everyone understand anti-dumping, do enough preparation, not to fight international lawsuits when people fish.Such efforts made Mr Cao confident that he would win, so Fuyao demanded that the US Commerce Department’s ruling be unfair and took it to the Federal Circuit.After a year and a half, the lawsuit made preliminary progress. In December 2003, the United States Court of International Trade made a preliminary ruling, agreeing with 8 of the 9 claims in fuyao Glass’s appeal and ordering the United States Department of Commerce to rehear the case.A new anti-dumping case is under way in the United States, and Canada is involved.In September 2001, PPG company of Canada submitted an application for anti-dumping investigation to the Canadian Customs and Revenue Agency and the International Trade Court, and put forward an anti-dumping investigation on ARG windshields from China.In December, the Canadian International Trade Court and the Canadian Customs and Revenue Agency jointly issued a notice, including Fuyao Glass and four Chinese exports of automobile windshield manufacturers began anti-dumping investigation.In February 2002, the Canadian International Trade Court ruled that the products under investigation had caused or threatened to cause injury to the Canadian domestic industry, and decided that the dumping rate of Fuyao Glass was 57%.In August, the International Trade Court held a hearing in Canada, fuyao Glass participated in the hearing.Cao dewang’s legal team pointed out that THE GLASS sold in Canada by PPG was also manufactured in the United States and then shipped to Canada.PPG and Fuyao are exporters of the same status and have no right to apply for dumping proceedings in Canada.On that count alone, the Canadian court ruled that PPG did not have standing to Sue.On August 30, 2002, the Canadian International Trade Court ruled that the automobile windshields from China did not cause material injury or threat of injury to Canadian domestic industry, and dumping was not established.After 9 months of anti-dumping case in Canada, represented by Fuyao, China’s automotive glass industry won the lawsuit.In the wake of the Gain in Canada, the Gleason on the U.S. side has also gained ground.October 15, 2004, the United States Department of Commerce finally announced the administrative review of the final ruling, Fuyao glass exported to the United States of automotive windshield, the final dumping rate of 0.13%, less than 0.5% is regarded as zero dumping rate.That is to say, from the date of final ruling, Fuyao Glass will no longer pay anti-dumping duty in advance in accordance with 11.8%, and the anti-dumping duty paid before will be refunded.After more than 3 years of anti-dumping case against Fuyao glass in the United States, Fuyao won the lawsuit to draw a satisfactory end.As China’s first anti-dumping victory since its accession to the World Trade Organisation, Fuyao’s move is significant.Since China’s reform and opening up, thousands of dumping cases have been filed around the world, and a significant number of them have been filed against Chinese companies.Many Chinese companies face lawsuits abroad, often paying for penalties or being forced to withdraw from overseas markets because they lack knowledge and experience in litigation.To compete globally, Chinese companies must stiffen their backs, confront lawsuits head-on and find weaknesses.These two victories of Fuyao glass, is a very good example, created a Chinese enterprise to break the administrative barriers of importing countries.