Officials from China's furniture industry Thursday reacted to
the anti-dumping row with the United States by saying that
cooperation rather than confrontation will benefit the two
countries.
Chinese furniture makers are already preparing their defense for
a possible anti-dumping case brought by some US manufacturers.
A senior official from the furniture subcouncil of the China
Chamber of Commerce for the Import and Export of Light Industrial
Products and Arts and Crafts, the major organization responsible
for the import and export of furniture, said increased furniture
exports from China not only benefit Chinese manufacturers but also
the US furniture industry and consumers.
"Some 60 percent of China's furniture exports are from the
processing trade," said the official, who refused to be named.
"Most of them come from Sino-US joint ventures, which ship the
materials from the United States, assemble the furniture in China
and export them back to the United States," the official added.
These joint ventures earn fat profits and also help boost the
furniture industry in the United States, the official said.
Many US furniture importers, wholesalers and retailers make
their living thanks to the Chinese furniture trade, which creates a
lot of jobs in the United States, the official said.
Relatively cheap Chinese furniture is also a better choice for
US consumers at a time when their country's economy is
sluggish.
"The furniture industries in the two countries can complement
each other as the United States makes high-end furniture and the
Chinese industry focuses on middle- and low-grade furniture," the
official said.
A group of US companies announced late last month that they
would file a petition this autumn with the US Department of
Commerce and the International Trade Commission to investigate
wooden bedroom furniture imported from China.
Major Chinese exporters have formed a special committee to deal
with any possible cases, said Jia Qingwen, director of the China
National Furniture Association.
The US furniture makers involved have accused Chinese furniture
makers of selling products at below market cost, which they say has
contributed to the closure of dozens of US furniture factories this
year.
Jia, however, insisted that the charge is groundless, given the
fact that the furniture exported from China makes a greater profit
than that sold within China.
"They (the Chinese companies) are not dumping. They export
because they can sell at a higher price than at home," said
Jia.
"The average profit level of exports can be as much as 30
percent."
Jia also noted that most exporters are private companies that
have not been subsidized by the government.
"Chinese exporters can afford (to sell at) lower prices because
of the low production costs in China, which is also the reason why
so many foreign furniture makers either shift their production
bases to China or have their products made here and sold back
home," he said.
China exported US$2.8 billion worth of furniture to the United
States last year. Total furniture exports were worth US$5.38
billion.
(China Daily August 22, 2003)?