[Breeze] On October 9, the General Administration of Foreign Trade of Saudi Arabia issued an announcement pointing the finger at Chinese products-officially filing an anti-dumping case against the aluminum lids of beverage cans originating in China. To put it bluntly, it is Red Bull, Coke, and sparkling water. The most commonly used small size lids!
(Source: Financial Information Agency-Saudi Arabia launches an anti-dumping investigation into China on aluminum cans)
Saudi announcement said very clearly, this investigation is aimed at the diameter of 20 mm to 38 mm of beverage cane aluminum cover, from the case to the outcome to go a set of process, first to check whether China aluminum cover is "low price dumping", and see if there is no "damage" to the Saudi indigenous industry, the entire process will probably last six months to a year.
Some people may ask: "Isn't it just a small aluminum cover? Why does Saudi Arabia have to check?" Behind this is actually a doorway to industrial competition.
Saudi Arabia is a major beverage consumer in the Middle East. Summer temperatures can often exceed 40 degrees. Sassy drinks such as Cola and Red Bull are particularly popular, consuming hundreds of millions of cans and aluminum lids every year.
However, Chinese aluminum covers account for a large share of the Saudi market, mainly relying on the advantage of cost performance-quality standards, and the price is about 20% lower than that of products in Europe, America, Japan and South Korea.
Saudi Arabia's local aluminum cover companies naturally couldn't sit still and joined forces to file a complaint, saying that China's aluminum cover companies were "grabbing the market at a low price," which reduced their orders and reduced profits, which led to this anti-dumping investigation.
But well-known netizens glanced through: "China's product price ratio is high, because of the large scale of the industry, technological maturity, not the so-called 'dumping'. "
Simply put, it is a country that believes that foreign goods are sold to its own country at a level lower than the "normal price" and has crushed the living space of domestic enterprises, it can initiate an investigation, verify the possibility of imposing a high amount of "antidumping duty" and raise the price of foreign goods.
But “low price” is not equivalent to “dumping”, often the cost is well controlled by companies in the exporting country, or the technology is more advanced.
China's aluminum covers can gain a foothold in the international market not by "low-price sales." Domestic aluminum cover companies have long achieved large-scale production. From aluminum processing to stamping forming, a production line can make millions of covers a day.
And the technology is also on track, such as food-grade coating and sealing performance, these key indicators are in line with international standards, and even Coca-Cola and Red Bull's global supply chains are using China-produced aluminum covers.
More importantly, the trade relationship between China and Saudi Arabia has always been very close.
China has been the largest trading partner of Arab countries for many years. Saudi oil and white shrimp are exported to China in large quantities, and China's new energy equipment and industrial products are also very popular in Saudi Arabia.
Some netizens said: "The cooperation in the usual time is good, how did you suddenly handle the small aluminum cover?"In fact, this is not a new thing in international trade, many countries will use anti-dumping as a "shield" to protect the local industry.
However, you don't have to worry too much about China companies. We have long experience in dealing with anti-dumping.
Before the European Union launched the investigation into China's MDI and China's U.S. MDI, domestic enterprises had a mature response.
First, set up a special working group, hire a team of professional lawyers to prepare materials, and make clear the evidence of "cost composition" and "pricing basis" to prove that the low price is reasonable and not dumping.
The second is to open up other markets. Saudi Arabia is not the only country in the Middle East. Like the United Arab Emirates and Qatar, they are both major beverage consumers, and companies are already receiving orders from these markets.
The third is to optimize the product structure. In addition to ordinary aluminum covers, we are also promoting more environmentally friendly "easy-to-tear aluminum covers" and "antibacterial aluminum covers" to open up new sales with high-end products.
There is another key detail. Although China's share of aluminum caps exported to Saudi Arabia is not small, most of them are supporting international beverage brands, rather than directly competing with local Saudi companies to compete for the market.
Even if an anti-dumping tax is actually imposed, companies can digest costs by adjusting the supply chain, such as transferring part of the production capacity to Southeast Asian countries, or increasing domestic market pioneering — after all, there are billions of domestic drinks and drinks containers in demand every year.
After netizens understood it clearly, the comment area also became calm: "The small aluminum cover is just a microcosm. The confidence of China's manufacturing industry lies here.""I used to be afraid of trade frictions, but now I know that companies have countermeasures, and I feel much more practical.""The key is to provide sufficient evidence and not let others accuse them of 'dumping' casually."
Some people also think of the previous case: "The last time the United States checked MDI, Wanhua Chemical relied on overseas production capacity and new markets to hedge its risks. This time, aluminum cover companies must have a way."
In fact, this incident also reminded China companies that exports cannot rely solely on cost performance, but must lay out "diversified markets" and "differentiated products" as soon as possible.
Like the anti-dumping anti-carbohydrate, while opening up new markets in the Middle East and Southeast Asia, while promoting new products, the effect is good.
Moreover, as the cooperation between China and Saudi Arabia on the "Vision 2030" becomes deeper and deeper, apart from small commodities such as aluminum covers, there is more room for cooperation in large projects such as new energy and infrastructure, and short-term trade frictions cannot stop the long-term cooperation trend.
At present, the Saudi investigation is still in its early stages, and the final result is not to be said.But it is certain that Chinese companies will not sit and wait, either with evidence to prove their innocence, or with a new strategy to open up the situation.After all, from clothing, household appliances to the current small aluminum cover, China's manufacturing industry is stronger and stronger in a trade challenge.
Finally, I would like to ask you, do you know which other China small commodities are popular internationally? When encountering trade frictions, do you think companies should give priority to protecting the market or protecting profits? Talking in the comment area will also add fuel to China's manufacturing industry. I believe this storm will not stop us from going out to sea!
(Source: Financial Information Agency-Saudi Arabia launches an anti-dumping investigation into China on aluminum cans)
Saudi announcement said very clearly, this investigation is aimed at the diameter of 20 mm to 38 mm of beverage cane aluminum cover, from the case to the outcome to go a set of process, first to check whether China aluminum cover is "low price dumping", and see if there is no "damage" to the Saudi indigenous industry, the entire process will probably last six months to a year.
Some people may ask: "Isn't it just a small aluminum cover? Why does Saudi Arabia have to check?" Behind this is actually a doorway to industrial competition.
Saudi Arabia is a major beverage consumer in the Middle East. Summer temperatures can often exceed 40 degrees. Sassy drinks such as Cola and Red Bull are particularly popular, consuming hundreds of millions of cans and aluminum lids every year.
However, Chinese aluminum covers account for a large share of the Saudi market, mainly relying on the advantage of cost performance-quality standards, and the price is about 20% lower than that of products in Europe, America, Japan and South Korea.
Saudi Arabia's local aluminum cover companies naturally couldn't sit still and joined forces to file a complaint, saying that China's aluminum cover companies were "grabbing the market at a low price," which reduced their orders and reduced profits, which led to this anti-dumping investigation.
But well-known netizens glanced through: "China's product price ratio is high, because of the large scale of the industry, technological maturity, not the so-called 'dumping'. "
Simply put, it is a country that believes that foreign goods are sold to its own country at a level lower than the "normal price" and has crushed the living space of domestic enterprises, it can initiate an investigation, verify the possibility of imposing a high amount of "antidumping duty" and raise the price of foreign goods.
But “low price” is not equivalent to “dumping”, often the cost is well controlled by companies in the exporting country, or the technology is more advanced.
China's aluminum covers can gain a foothold in the international market not by "low-price sales." Domestic aluminum cover companies have long achieved large-scale production. From aluminum processing to stamping forming, a production line can make millions of covers a day.
And the technology is also on track, such as food-grade coating and sealing performance, these key indicators are in line with international standards, and even Coca-Cola and Red Bull's global supply chains are using China-produced aluminum covers.
More importantly, the trade relationship between China and Saudi Arabia has always been very close.
China has been the largest trading partner of Arab countries for many years. Saudi oil and white shrimp are exported to China in large quantities, and China's new energy equipment and industrial products are also very popular in Saudi Arabia.
Some netizens said: "The cooperation in the usual time is good, how did you suddenly handle the small aluminum cover?"In fact, this is not a new thing in international trade, many countries will use anti-dumping as a "shield" to protect the local industry.
However, you don't have to worry too much about China companies. We have long experience in dealing with anti-dumping.
Before the European Union launched the investigation into China's MDI and China's U.S. MDI, domestic enterprises had a mature response.
First, set up a special working group, hire a team of professional lawyers to prepare materials, and make clear the evidence of "cost composition" and "pricing basis" to prove that the low price is reasonable and not dumping.
The second is to open up other markets. Saudi Arabia is not the only country in the Middle East. Like the United Arab Emirates and Qatar, they are both major beverage consumers, and companies are already receiving orders from these markets.
The third is to optimize the product structure. In addition to ordinary aluminum covers, we are also promoting more environmentally friendly "easy-to-tear aluminum covers" and "antibacterial aluminum covers" to open up new sales with high-end products.
There is another key detail. Although China's share of aluminum caps exported to Saudi Arabia is not small, most of them are supporting international beverage brands, rather than directly competing with local Saudi companies to compete for the market.
Even if an anti-dumping tax is actually imposed, companies can digest costs by adjusting the supply chain, such as transferring part of the production capacity to Southeast Asian countries, or increasing domestic market pioneering — after all, there are billions of domestic drinks and drinks containers in demand every year.
After netizens understood it clearly, the comment area also became calm: "The small aluminum cover is just a microcosm. The confidence of China's manufacturing industry lies here.""I used to be afraid of trade frictions, but now I know that companies have countermeasures, and I feel much more practical.""The key is to provide sufficient evidence and not let others accuse them of 'dumping' casually."
Some people also think of the previous case: "The last time the United States checked MDI, Wanhua Chemical relied on overseas production capacity and new markets to hedge its risks. This time, aluminum cover companies must have a way."
In fact, this incident also reminded China companies that exports cannot rely solely on cost performance, but must lay out "diversified markets" and "differentiated products" as soon as possible.
Like the anti-dumping anti-carbohydrate, while opening up new markets in the Middle East and Southeast Asia, while promoting new products, the effect is good.
Moreover, as the cooperation between China and Saudi Arabia on the "Vision 2030" becomes deeper and deeper, apart from small commodities such as aluminum covers, there is more room for cooperation in large projects such as new energy and infrastructure, and short-term trade frictions cannot stop the long-term cooperation trend.
At present, the Saudi investigation is still in its early stages, and the final result is not to be said.But it is certain that Chinese companies will not sit and wait, either with evidence to prove their innocence, or with a new strategy to open up the situation.After all, from clothing, household appliances to the current small aluminum cover, China's manufacturing industry is stronger and stronger in a trade challenge.
Finally, I would like to ask you, do you know which other China small commodities are popular internationally? When encountering trade frictions, do you think companies should give priority to protecting the market or protecting profits? Talking in the comment area will also add fuel to China's manufacturing industry. I believe this storm will not stop us from going out to sea!