Rebirth 99 to become a car giant.

Chapter 229 The First WTO Case

It has been more than a year since China joined the WTO.

In the course of more than a year, many foreign trade companies have already felt the benefits.

However, some new problems have gradually been exposed.

That is, some domestic enterprises are still not familiar enough with some international trade rules.

Especially when it comes to some legal aspects, it is even more unfamiliar.

Obviously, Ovid wants to consider using this method now.

"Ovid, please tell me specifically, what is the way to make Nanshan Bearing withdraw from the American market."

As the CEO of SKF, Johnston is under great pressure this year.

The business of the entire SKF Group in the automotive field is declining, and orders in the field of machine tools have also been affected.

The Huaxia market, which had been placed with high hopes, was even more appalling.

Under such circumstances, it is absolutely unacceptable to lose the second largest American market again.

"Johnston, we all know very well that Nanshan Bearing can seize our market in China and the United States. The core problem is that the price is lower than ours."

"Even for some bearings, our cost price is higher than their selling price, which has led many customers to choose to cooperate with them."

"But I think this situation is abnormal and problematic."

"We can definitely go to the American judiciary and sue Nanshan for dumping!"

As soon as Ovid said this, Johnston immediately got to his point.

Dumping and anti-dumping, why didn't I think of this matter before?
Dumping refers to the behavior of export operators in one country or region to sell their products to the market of another country at a price lower than the normal or average price in the domestic market or even lower than the cost price, with the purpose of defeating competitors, seizing the market, and thus imposing imports. Producers and industries of the same or similar products in the country will be harmed.

Anti-dumping refers to countermeasures taken by a country (importing country) against other countries' dumping behavior.

These things are clearly stipulated in the relevant agreements of the WTO.

Johnston is no stranger to this stuff.

It's just that I didn't think about engaging in Nanshan from this angle before.

SKF is not the only bearing manufacturer affected by Nanshan.

If they stand up to engage in anti-dumping, they will definitely receive the support of many American manufacturers.

"Ovid, your proposal is very good, I think it is completely feasible."

"I immediately asked the legal department of the group to cooperate with the legal department of the American branch to see how to quickly carry out the anti-dumping case."

"As long as the implementation of dumping of Nanshan bearings is quickly identified, the cost advantage of Nanshan can be resisted by increasing anti-dumping duties."

"Once Nanshan Bearing loses its cost advantage, manufacturers such as General Motors and Ford will naturally not use it in large quantities."

Johnston's mood suddenly became much more beautiful.

Sure enough, there is no unparalleled road.

"The most important thing in anti-dumping is the determination of substantial damage. The main consideration in this regard is that the damage should be determined based on conclusive evidence, and it is mainly investigated from two aspects: one is the quantity of dumped imported products and the impact of dumped imported products on similar products in the domestic market. the effect on prices; and the second is the consequent effect of these imports on domestic producers of such products.”

"Because of the dumping of Nanshan bearings, the price of our bearings has been declining, and we are even in a state of loss."

"And it also had a very direct impact on the output of our bearings, which is completely in line with the anti-dumping conditions."

Seeing that Johnston affirmed his plan, Ovid immediately became more motivated.

Soon, he began to find professional personnel to further understand the situation in this regard.

"Ovid, if we want to sue Nanshan Bearing for dumping, we only need to produce evidence in terms of actual damage."

As the legal director of SKF America, Vivienne is naturally professional.

Quickly gave his own analysis.

"Substantial damage?"

Ovid was overjoyed, this judgment was completely consistent with what he reported.

At that time, I can better set off my comprehensive knowledge.

"That's right, the import volume of products subject to anti-dumping investigation has increased significantly compared with before, the market share has increased significantly, the price of similar products in the importing country has dropped significantly, or the price increase has been severely suppressed under the circumstances of a large increase in demand, etc., That damage is material."

"Which aspect of this investigation is more appropriate, and it is faster to draw a conclusion?"

Although Ovid himself has a certain amount of legal knowledge, professional matters should be left to professional people.

"This mainly considers three factors. The first is whether the quantity of the dumped product constitutes a sharp increase—whether in absolute quantity or relative to the production or consumption of the importing country."

"We have this data ready-made, and we can take it out immediately!"

Ovid couldn't help interjecting as soon as he heard it.

"The second is whether the product has an impact on the price of the same or similar product in the importing country and the extent of the impact."

"This data is also readily available. The average price of our bearings has dropped by at least 15%, but the market share is still declining."

Having said that, Ovid couldn't help gnashing his teeth a bit.

It's so frustrating!
"The third is the impact and subsequent impact of the product on producers of the same or similar products in the importing country's domestic industry, including production output, sales, inventory, market share, price, profit, productivity, return on investment, cash flow, Equipment availability, employment and many other factors.”

"After the evidence in this area is collected, we can immediately go to the judiciary to file a related anti-dumping case."

Her analysis also gave Ovid more confidence.

There is a lot to be done about this matter!

……

SKF's work efficiency is still very high.

In just one week, the personnel on the American side worked overtime continuously to get things out.

The news that always says that foreigners don't care about their jobs as soon as they get off work and just leave is completely unrepresentative.

It can only be said that most people do not work overtime, but when they have to work overtime, when their core interests are involved, they should stay up late or have to stay up late.

"Xue, there is something you need to prepare in advance. This is something directly instructed by the headquarters."

Early in the morning, Golmer was in a good mood and called Xue Wenqiang to his office.

SKF Huaxia's current business is very bleak. Although it has not reached the point of closing, the business has shrunk not a little.

So Holm has always been in a bad mood, always worried about being fired.

Now finally hear the good news.

"Is there any big move at the headquarters?"

Xue Wenqiang's ability to observe words and emotions is very strong, and he has been following Golmer for not a day or two.

Naturally, a lot can be felt from Golmer's expression and tone.

"It's okay for you to understand that."

"This time, the headquarters is going to give Nanshan a hard time, to let them know that they have gone too far and there will be no good end."

Holmo couldn't help but smile as he thought about the phone call in the middle of the night yesterday.

The headquarters finally found a way to check and balance Nanshan Bearing, which is really rare.

"Could it be that we have caught something about Nanshan?"

Xue Wenqiang was very cooperative and chatted with Golmer, "Let me guess, is it because we have caught Nanshan's fraud?"

"The research and development personnel at the headquarters have not given up on this effort, but there has been no progress for the time being."

Golmer enjoyed a sip of coffee, sat on his chair, and crossed his legs.

"If it's not a fraud, it means that our headquarters has secured some big customers, and we want to set a threshold for Nanshan?"

Xue Wenqiang is really not sure what big move the headquarters will have.

In his opinion, if there is a good big move, the headquarters should have used it long ago.

Why wait until now.

"Forget it, you don't have to guess wildly, it's all wrong!"

Holm didn't intend to continue to play tricks, and said directly: "The headquarters and the American branch are working together to promote the anti-dumping investigation against Nanshan Bearing."

"At present, the early preparations have been basically completed, and the relevant materials have now been officially submitted to the American judiciary."

"If nothing else happens, the judiciary in the United States will formally accept the case next week."

"Then it will be Nanshan's turn to have a headache."

Holm is very much looking forward to the scene where Nanshan suffers in overseas markets.

In recent years, when some enterprises in Huaxia entered the international market, they obtained a lot of orders by relying on ultra-low prices.

Correspondingly, local enterprises in various countries will naturally be affected to a certain extent.

SKF chose to initiate an anti-dumping investigation at this time, which plunged Nanshan into an anti-dumping case, and the timing was very good.

"Anti-dumping investigation?"

Xue Wenqiang was a little confused.

It was the first time he knew that he could do business like this.

"That's right!"

"As long as the anti-dumping investigation is initiated, we can apply for an increase in import tariffs on Nanshan Bearings, and the increase can be 100% or even 200% directly."

"At that time, I will see how cost-competitive Nanshan Bearing will be."

"The cost of this part is rising, and those car companies are willing to bear it."

Golmer sneered, looking forward to the next thing.

"Is this measure at the headquarters effective quickly?"

"I'm worried that if it drags on for too long, Nanshan has already taken over the market by then."

Xue Wenqiang has not yet fully experienced the severity of the anti-dumping investigation, so he is a little worried that Nanshan will get out of punishment again.

"Once the anti-dumping investigation procedure is launched, the foreign trade of the relevant domestic industries in the exporting country under investigation will be disrupted, and the normal production activities of Nanshan will be suspended, and the relevant parties will enter the lengthy and complicated anti-dumping procedure."

"So no matter how long it takes for the final ruling to come out, once this matter enters the process, Nanshan can fall into a passive situation, and their parts exports will face great uncertainty."

"It is impossible for Nanshan to bear such a large cost increase by itself. Manufacturers such as General Motors and Ford Motors will not buy bearings at high prices foolishly."

"This means that it is basically difficult for their bearings to obtain new projects. At least until the case is finalized, they dare not give Nanshan new projects."

"This alone, our goal has been achieved."

"Of course, our American branch will push the judiciary to make a ruling within this year or even next month as soon as possible."

"Once the ruling of Nanshan bearing dumping is established, the impact on Nanshan will definitely be huge."

Holmes felt that the opportunity for revenge had come.

In his view, Nanshan is just dumping.

Looking at the 50 yuan wheel bearings at the beginning, SKF didn't even have enough material costs.

This kind of gameplay of Huaxia Company must be resolutely suppressed.

"Then on this matter, what can our Huaxia branch do?"

Although Xue Wenqiang is from Huaxia, he is still very willing and looking forward to seeing Nanshan's unlucky scene.

It would be great if I could put more effort into this matter.

"Of course there is work to do, otherwise I wouldn't have called you over, and the headquarters wouldn't have called me directly."

When Golmer said this, Xue Wenqiang looked forward to it even more.

"If there is anything I need to prepare, just tell me, and I will do it right away!"

"After the anti-dumping case was filed, because it was mainly aimed at the American market, many people in China didn't know about it."

"So what we need to do is to spread the news that Nanshan bearings have been subject to anti-dumping investigations in the United States in a short period of time."

"We want Nanshan to bear enough pressure, so that their production and operation will be greatly affected, and even their customers will worry about Nanshan's future."

"In this regard, you need to arrange some people to prepare some articles. Once there is news from the United States, our articles need to appear on the Internet immediately to let more people know about it."

Holmes is naturally also a person who understands the offensive of public opinion.

As the sales director, making trouble for Nanshan is his most important task now.

"This is no problem. We can hype this matter well and attract the attention of netizens outside the auto industry."

"At that time, Nanshan will definitely feel a lot of pressure, which will make them mess up!"

Xue Wenqiang thought quickly in his mind, thinking about how to make this matter bigger.

Which of my classmates are in newspapers and websites?

Is there any other better way to make this matter bigger?
These things are worth thinking about.

"That's right, that's what the headquarters means."

"On Huaxia's side, Nanshan is a local company. It is more difficult for us to deal with them at the level of policies and regulations."

"But in the United States, in Europe, that's our home game."

"We must take this opportunity to completely block Nanshan's thorough internationalization!"

Holm waved his hand, as if he had made up his mind.

(End of this chapter)