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TV makers to act on US ruling
By Dai Yan (China Daily)
Updated: 2004-05-17 08:44

China's TV makers are preparing to file an appeal against what they consider an unfair ruling on anti-dumping with the US Court of International Trade but are yet to make a final decision.

Officials from the China Chamber of Commerce for the Import and Export of Machinery and Electronic Products confirmed they are studying the specific details of the appeal with local TV set makers.

The US International Trade Commission ruled on Friday that the cheaper Chinese televisions are hurting the US industry and threatening the jobs of more than 3,000 American workers.

The Chinese products will face import duties of as much as 78 per cent, despite protests by US retailers such as Wal-Mart Stores Inc.

Retailers say that Chinese televisions serve a low-end segment of the US market that domestic producers are not interested in supplying.

Major Chinese producers will face duties ranging from 5.2 per cent to 26.4 per cent.

The decision was the final piece of the process of imposing the levy which will go into effect by early June and continue until its review in five years.

The year-long process was kicked off by a complaint from Five Rivers Electronic Innovations LLC, a television assembler based in Tennessee, which makes televisions for companies such as Samsung Corp, and two labour unions.

The unions are the International Brotherhood of Electrical Workers and the Industrial Division of the Communications Workers of America, both in Washington.

The unions' members work for plants operated by Sanyo Manufacturing Corp in Forrest City, Arkansas; Sharp Electronics Corp in Memphis, Tennessee; and Toshiba America Consumer Products Inc in Wayne, New Jersey.

The Chinese companies have denied the charges that they trade their televisions unfairly and said they sell at reasonable prices.

But the US agency refused to recognize the Chinese case because it views China as a non-market economy.

The Chinese colour TV makers were shocked by the ruling and have expressed dissatisfaction.

A spokesman from Sichuan Changhong, one of China's major TV makers, said it will join other TV makers to respond to this ruling.

Konka Group, a TV maker in Shenzhen, said it was shocked by and indignant about the ruling, and is considering specific plans to counter the US panel's ruling.

Both said they will not leave the US market or stop attempts to sell their products there.

Many local companies have started or are considering the establishment of overseas manufacturing facilities.

The Ministry of Commerce is yet to give an official response.

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