Chinese Furniture Industry Braces for Showdown
with US Makers
Chinese furniture makers are preparing their defense
for a possible anti-dumping case brought by US makers.
A group of US companies announced in late July that they
would file a petition with the US Department of Commerce
and the International Trade Commission to investigate
wooden bedroom furniture imported from China. The US furniture
makers have accused the Chinese makers of selling products
at below market cost, which they say has contributed to
the closure of dozens of US furniture factories, and the
loss of many US jobs.
The Chinese makers are represented by the furniture subcouncil
of the China Chamber of Commerce for the Import and Export
of Light Industrial Products and Arts and Crafts.
According to them, most Chinese exports are made by Sino-US
joint ventures, which ship the raw materials from the
US, process the material, assemble the furniture, then
ship it back to the US. The Chinese say that these joint
ventures earn sizable profits and help boost the furniture
industry in the US. In turn, the US partners create new
jobs in the US in furniture distribution and sales.
The major Chinese makers have formed a special committee
to deal with any possible cases.
The US furniture makers who have filed the complaint
with the US Commerce Department have accused the Chinese
of selling products at below market cost, which has contributed
to the factory closures and lost jobs.
The Chinese respond that it is ridiculous to think that
the Chinese are dumping their furniture in the US at a
loss. They claim that they export to the US because they
can get a higher price for their products in the US, than
they can from selling in the Chinese domestic market.
According to them, their average profit on exported furniture
is 30 percent.
China exported US$2.8 billion worth of furniture to the
US in 2002. Total furniture exports were worth US$5.38
billion.
Before you go, did you like this article?
If so, you can receive a free email newsletter version
each weekday. Sign up using the China Business Express
form on this page.
