US "Washington Post" May 23 article, original title: China bypasses US tariffs
China's irresistible export power is not unstoppable. Just ask Woodrence Wood Furniture Company (Dongguan) boss Lawrence Yan (voice) to be clear. His factory in Dongguan has 400 containers in the bedroom house that was exported to the US every month, but now there are only 60 containers.
This is what the US competitors who are exhausted are hoping to happen. In January 2005, the US Department of Commerce imposed import duties on beds, bedside tables and related products produced in China. However, the next thing did not develop as expected by the United States: Yan opened a factory in Vietnam and began to export products to the United States from there. Others do the same. Now, he is building a large factory in Indonesia, hoping to export more products to the United States.
Today, about 70% of bed and related products in the United States are imported, but before Washington intervened and tried to protect the domestic furniture industry from “dumping†of Chinese products, the ratio was 58%. Trade concerns have sparked calls for Washington to take more rigorous action to protect US employment. Has the tariff been effective? In terms of furniture, this has obviously slowed down the speed of Chinese export machines. In 2004, before the entry into force of the tariff, the value of bedroom furniture exported by China to the United States reached 1.2 billion U.S. dollars, compared with 691 million last year. But at this stage, imports from Vietnam, where wages and production costs are even lower than China's, have exploded, from $151 million to 931 million. At the same time, the number of jobs lost in the United States is accelerating. The Americans who now work on bedroom furniture are less than half of the pre-taxes.
Some small American manufacturers have formed a group to set up a legal trade committee for American furniture manufacturers, asking Washington to "save them to death." With the help of the union, they submitted a request to accuse Chinese competitors of dumping furniture to the US market. After a long debate, the US Department of Commerce ruled that China’s “low price†dumping began to impose tariffs on Chinese exporters. Dongguan furniture manufacturers held meetings to discuss countermeasures. They set up a fund to support lobbying efforts in Washington and began to hire lawyers to file lawsuits. Strict but have another idea. He said: "I told them that I will build a factory in Vietnam." He explained that this will not only enable his company to evade US tariffs, but also eliminate China's rising production costs.
Vietnam has now replaced China as the main source of furniture for sale in the United States, thanks in large part to the transfer of factories in Dongguan and elsewhere to Vietnam. Travis Bell, an American furniture buyer who has moved from Virginia to Dongguan, dismissed the claim that anti-dumping clauses have helped the US industry. “The only thing that changes is where you eat dinner,†he said. “It used to be in Dongguan, but now it is in Ho Chi Minh City.†▲ (by Andrew Higgins)
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