Rebirth 99 to become a car giant.

Chapter 229 The first case of WTO accession

It has been more than a year since China joined the WTO.

Over the course of more than a year, many foreign trade companies have already felt the benefits.

However, some new problems have gradually been exposed.

Even some domestic companies are still not familiar enough with some international trade rules.

Especially when it comes to some regulatory aspects, it is even more unfamiliar.

It is clear that Ovid now wanted to consider using this method.

"Ovid, please tell me in detail how you can make Nanshan Bearing withdraw from the American market."

As the CEO of SKF, Johnston is also under great pressure this year.

The entire SKF Group's business in the automotive field is declining, and orders in the machine tool field have also been affected.

The Chinese market, which originally had high hopes, is even more miserable.

Under such circumstances, it would be absolutely unacceptable if we lose the second largest U.S. market again.

"Johnston, we all know very well that Nanshan Bearing can seize our market in places such as China and the United States. The core problem is that the price is lower than ours."

"Even for some bearings, our cost price is higher than their selling price, which has led to many customers choosing to cooperate with them."

"But I think this situation is abnormal and problematic."

"We can definitely go to the American judicial authorities and accuse Nanshan of engaging in dumping!"

As soon as Ovid said these words, Johnston immediately got his point.

Dumping and anti-dumping, why didn’t I think of this before?

Dumping refers to the behavior of export operators of a country or region to sell their products to the market of another country at a price lower than the normal or average price in the domestic market or even lower than the cost price. The purpose is to defeat competitors, seize the market, and thus impose a heavy burden on imports. causing damage to manufacturers and industries of the same or similar products in the country.

Anti-dumping refers to the countermeasures taken by a country (importing country) against other countries' dumping behavior against itself.

These things are clearly stipulated in relevant WTO agreements.

Johnston is no stranger to this stuff.

It’s just that I never thought about approaching Nanshan from this angle before.

SKF is not the only bearing manufacturer affected by Nanshan.

If they stand up for anti-dumping, they will definitely receive support from many American manufacturers.

"Ovid, your proposal is very good. I think it is completely feasible."

"I immediately asked the group's legal department to cooperate with the legal department of the American branch to see how to quickly initiate the anti-dumping case."

“As long as the implementation of Nanshan Bearing dumping is quickly identified, Nanshan’s cost advantage can be resisted by increasing anti-dumping duties.”

"Once Nanshan Bearing loses its cost advantage, manufacturers such as General Motors and Ford will naturally not use it in large quantities."

Johnston's mood suddenly became much more beautiful.

Sure enough, there is no unparalleled road.

“The most critical thing about anti-dumping is the determination of substantial damage. The main consideration in this regard is that the damage should be determined based on conclusive evidence, and the investigation should be mainly conducted from two aspects: first, the quantity of dumped imported products and the impact of dumped imported products on similar products in the domestic market. The second is the impact of these imported products on domestic producers of such products."

"Because of the dumping of Nanshan Bearings, the price of our bearings has been declining, and we are even losing money."

"And it has had a very direct impact on our bearing production, which is completely in line with the conditions for anti-dumping."

Ovid saw that Johnston confirmed his plan, and his enthusiasm immediately increased.

Soon, he started looking for professional personnel to learn more about this situation.

"Ovid, if we want to sue Nanshan Bearing for dumping, we only need to be able to produce evidence in terms of substantial damage."

As the legal director of SKF America, Vivian’s professionalism is unquestionable.

He quickly gave his analysis.

"Substantial damage?"

Ovid was overjoyed. This judgment was completely consistent with what he reported.

At that time, you can better demonstrate your comprehensive knowledge.

“Yes, the import volume of the products subject to anti-dumping investigation has increased significantly compared with before, the market share has increased significantly, the prices of similar products in the importing country have dropped significantly, or the price increase has been seriously suppressed due to a large increase in demand, etc. The damage is substantial."

"Which aspect should be more appropriate to investigate this and draw a conclusion more quickly?"

Although Ovid himself was considered to have some legal knowledge, professional matters still had to be left to professionals.

"This mainly considers three factors. The first is whether the quantity of dumped products constitutes a sharp increase - either in absolute quantity or relative to the production or consumption of the importing country."

"We have this data ready-made and can take it out immediately!"

Ovid couldn't help but chime in.

"The second is whether the product has an impact on the price of the same or similar products in the importing country and the extent of the impact."

"This data is also readily available. Our average bearing price has dropped by at least 15%, but our market share is still declining."

At this point, Ovid couldn't help but grit his teeth a little.

It’s so frustrating!

“The third is the impact and subsequent impact of the product on manufacturers of the same or similar products in the domestic industry of the importing country, including production output, sales, inventory, market share, price, profit, productivity, investment recovery rate, cash flow, Equipment utilization capabilities, employment and many other factors.”

“After collecting the evidence in this regard, we can immediately file a relevant anti-dumping case with the judicial authorities.”

Her analysis also gave Ovid more confidence.

This matter has great potential!

……

SKF's work efficiency is still very high.

In just one week, the staff in the United States worked overtime continuously to get things out.

Those news that always say that foreigners don’t care about any work and leave directly as soon as they get off work are completely unrepresentative.

It can only be said that people do not work overtime in most cases, but when they have to work overtime, when their core interests are involved, they still have to stay up late.

"Xue, there is something you need to prepare in advance. This is something directly instructed by the headquarters."

Early in the morning, Holm called Xue Wenqiang to his office in a very good mood.

SKF Huaxia's current business is very bleak. Although it has not closed down, its business has shrunk not a little.

So Holm was never in a good mood and worried about being fired at any time.

Now I finally heard some good news.

"Is there any big move at the headquarters?"

Xue Wenqiang's ability to observe people's emotions is very strong, and he has been following Golm for more than a day or two.

Naturally, we can feel a lot of things from Golm's expression and tone.

"It's okay if you understand it this way."

"This time, the headquarters is going to give Nanshan a hard slap to let them know that if they go too far, they will not end well."

Holmer couldn't help but smile as he thought about the phone call in the middle of the night last night.

The headquarters finally found a way to check and balance Nanshan Bearing, which is really rare.

"Could it be that we have grasped something about Nanshan?"

Xue Wenqiang was very cooperative and chatted with Golm, "Let me guess, did we catch Nanshan's fraud?"

"The R&D personnel at the headquarters have never given up on their efforts in this area, but there has been no progress for the time being."

Holm took a sip of coffee with great enjoyment, sat on his chair, and crossed his legs.

"If it's not a fraud, then our headquarters has secured some big customers and is setting a threshold for Nanshan?"

Xue Wenqiang is really not sure what big move the headquarters will make.

In his opinion, if there was any good ultimate move, the headquarters should have used it long ago.

Why wait until now.

"Forget it, you don't have to guess, it's all wrong!"

Holm did not intend to continue to sell the matter and said directly: "The headquarters and the American branch are jointly promoting the anti-dumping investigation against Nanshan Bearing."

"At present, the early preparation work has been basically completed, and the relevant information has now been officially submitted to the American judicial authorities."

"If nothing else happens, the American judicial authorities will formally accept this case next week."

"Then it will be Nanshan's turn to have a headache."

Holm is very much looking forward to the scene of Nanshan's failure in overseas markets.

In recent years, some Chinese companies have obtained a lot of orders with ultra-low prices when they entered the international market.

Correspondingly, local companies in each country will naturally be affected to a certain extent.

SKF chose to initiate an anti-dumping investigation at this time, which plunged Nanshan into an anti-dumping case. The timing was still very good.

"Anti-dumping investigation?"

Xue Wenqiang was a little confused.

This was the first time he knew how to do business like this.

"That's right!"

"As long as the anti-dumping investigation is launched, we can apply for an increase in import tariffs on Nanshan bearings, and the increase can be directly 100% or even 200%."

"At that time, I will see if Nanshan Bearing still has any cost competitiveness."

“Whether those car companies are willing to bear the cost increase?”

Holm sneered, looking forward to what happened next.

"Is this measure taken by the headquarters effective quickly?"

"I'm worried that if we delay it too long, Nanshan will already have the market occupied by then."

Xue Wenqiang has not fully seen the severity of the anti-dumping investigation, so he is a little worried about Nanshan's separation from punishment again.

"Once the anti-dumping investigation procedures are launched, the foreign trade of the domestic related industries of the exporting country under investigation will be disrupted, normal production activities in Nanshan will be suspended, and the relevant parties will enter a lengthy and complicated anti-dumping procedure."

"So no matter how long it takes for the final ruling to come out, once this matter enters the process, it will put Nanshan into a passive situation and make their parts exports face great uncertainty."

"It is impossible for Nanshan to bear such a large cost increase on its own, and manufacturers such as General Motors and Ford Motor Company will not buy bearings at high prices."

"This means that it is basically difficult for their bearings to obtain new projects. At least until the case is concluded, people dare not give Nanshan new projects."

"This alone means our goal has been achieved."

"Of course, our American branch will also push the judicial authorities to make a ruling as soon as possible within this year, or even next month."

"Once the ruling on Nanshan Bearing Dumping is established, the impact on Nanshan will definitely be huge."

Holm felt his chance for revenge had come.

In his view, Nanshan is engaging in dumping.

Look at the wheel bearings that cost 50 yuan each. SKF didn’t even pay for the materials.

This kind of gameplay of Huaxia Company must be resolutely suppressed.

"Then what can our Huaxia Branch do about this matter?"

Although Xue Wenqiang is Chinese, he is still very willing and looking forward to seeing Nanshan's unlucky scene.

It would be great if I could contribute more to this matter.

"Of course there is work that needs to be done, otherwise I wouldn't have asked you to come over, and the headquarters wouldn't have called me directly."

When Golm said this, Xue Wenqiang became even more excited.

"If there's anything you need me to prepare, just tell me and I'll do it right away!"

"After the anti-dumping case was filed, many people in China did not know about it because it was mainly targeted at the American market."

"So what we need to do is to make the news that Nanshan Bearing is subject to anti-dumping investigations in the United States spread quickly in a short period of time."

"We are going to put Nanshan under enough pressure that their production and operations will be greatly affected, and even their customers will be worried about Nanshan's future."

"In this regard, you need to arrange some people to prepare some articles. Once there is news from the United States, our articles need to appear on the Internet immediately to let more people know about it."

Of course, Holm is also someone who knows how to attack public opinion.

As the sales director, causing trouble for Nanshan is his most important task now.

"This is no problem. We can hype this up and attract the attention of netizens outside the automotive industry."

"Nanshan will definitely feel a lot of pressure by then, which will make them confused!"

Xue Wenqiang thought quickly in his mind, thinking about how to make this matter bigger.

Which of your classmates are in newspapers or websites?

Is there any other better way to make this matter bigger?

These things are worth thinking about carefully.

"Yes, that's what the headquarters means."

"Here in China, Nanshan is a local company. It is more difficult for us to deal with them at the policy and regulatory level."

"But when we get to America, when we get to Europe, that's our home court."

"We must take this opportunity to completely block Nanshan's path to internationalization!"

Holmer waved his hand, as if he had made up his mind.