Indian government continues to anti-dumping on Chinese sewing needles

The Anti-dumping Bureau of the Ministry of Commerce and Industry of India recently issued a fact-finding report on the anti-dumping investigation of sewing machine needles (SewingMachineNeedles) originating in China.

In this disclosure, the Anti-Dumping Agency of India still regards China as a non-market economy country and uses structural prices to calculate the normal value. In the end, the dumping margin of China's export enterprises was determined to be 2201%.

The Anti-dumping Bureau also considered the factors such as import quantity, market share, import price, production capacity, sales volume and cost, profit margin, inventory, etc., and determined that Chinese products have caused damage to domestic industries in India.

Domestic machine needles exported to India as usual

The large amount of this 2201% dumping that was found made people very concerned about the impact on the Chinese needle industry.

"So far, it hasn't been affected." Xue Hongfei, chairman of Jiangsu Feihu Needle Industry Co., Ltd. (the largest sewing machine manufacturer in China) told the author.

"This month our company has hundreds of thousands of shipments to India and it is very smooth." Gao Jiaping, chairman of the Haimen Sewing Machine Needle Association, responded.

It can be seen that this anti-dumping policy has not been substantially implemented and the Chinese needle industry's export to India is still operating as usual. However, needles for sewing machines, which are one of the spare parts, are only the tip of the iceberg in China's sewing machinery industry. And India is also a popular exporter of sewing equipment in China. Will the anti-dumping momentum continue to affect machine manufacturers?

Surprisingly, India, as a clothing producing country, does not have a large-scale sewing machinery manufacturing industry, but only a few parts and components companies. The secretary of the China Sewing Machinery Association, Yang Xiaojing, told the author: "Since there are almost no sewing machine manufacturers in India, we do not have the preconditions for carrying out anti-dumping investigations on China's sewing equipment. We will not worry about this in the near future. a little."

Xue Hongfei also said: "In recent years, India has issued quite a number of anti-dumping sanctions against China. We have also attached importance to it in the beginning, but later we have gradually become careless. The simplicity of the investigation and the authenticity of the process are very impressive. doubt."

Product cost verification needs to be objective

It is understood that this time, India's anti-dumping investigation on Chinese sewing needles began in 2009. At that time, the China Sewing Machinery Association also contacted a number of needle companies to study countermeasures, but few companies actively responded. Of course, part of the reason for this is that Chinese companies lack understanding of the international market and international WTO rules and will not protect themselves with the relevant WTO rules. But is it just that? Is there any special reason for this?

Xue Hongfei went on to discuss the origins of the matter. In the Indian market, the low-end sewing needles basically come from China. In recent years, Japanese and German companies have set up factories in India to provide some high-end needles. Later, a German company withdrew and a local Indian took over. According to Xue Hongfei, the anti-dumping incidents against Chinese machine needle companies in recent years are all specific operations of this Indian.

In the meantime, the Indians actually went to Xue Hongfei’s company to actually inspect, because he did not believe that the cost of Chinese products could be lower than India's. The author learned from industry insiders that if the same kind of machine needles are converted in RMB, the cost of Chinese production can be controlled at a few cents, while Indian production requires 2-3 yuan. Therefore, Indians have always thought that the Chinese government is subsidizing and supporting the government.

“Sewing equipment is not a large-scale industry in China, there is no national protection problem, and we are also profitable for the current cost. I also went to India to look at India’s needle factory, almost It can be said that it is the only company in India that can produce needles, and the scale is so small that one can imagine their production costs. The Indians did not consider that we have a complete industrial chain and relatively inexpensive operating costs.” Xue Hongfei Pointed out.

It is not realistic to reject Chinese machine needles

"If we don't let us export needles to India, what do they do to sew?" Gao Gaoping said.

As we all know, India has become the second textile and garment producer in the world following China. Especially in the past one or two years, with the abrupt changes in the international economic situation and China’s domestic policies and market shifts, a batch of garment processing orders and processing plants that originally belonged to China had also flowed to Southeast Asian and South Asian countries headed by India, even foreseen. Next, India's textile and garment processing industry will continue to expand.

According to Xue Hongfei's estimation, 70%-80% of needles used in the apparel industry in India come from China. To take a step back, even if the 2201% anti-dumping rate disclosed this time is actually implemented, then Chinese companies must abandon their exports to India, which may be a fatal blow to the Indian textile and garment industry.