The U.S. Launches Anti-Dumping Investigation on Chinese Wood Flooring

The U.S. Department of Commerce has launched anti-dumping investigation on 169 Chinese wood flooring companies that their American counterparts claim are creating a disfavorable position for locals, a 21st Century Business Herald report said.

Some agents in the U.S. have also halted orders to the alleged companies, which may face tariffs of up to 242.2 percent, the report said.

American wood flooring manufacturers jointly submitted a petition to U.S. Department of Commerce to investigate the Chinese rivals, and suggested tariffs of up to 242.2 percent on October 21, 2010, as they think the prices of these Chinese products are too low. The U.S. International Trade Commission (USITC) made an initial decision on December 3 last year that Chinese wood floors harm the industry and took the investigation on subsidies and dumping into essential phase.

Results of preliminary rulings will be released in March this year, with final rulings to be announced in June.

The Chinese side will appeal to discuss on the damages and subsidies mentioned in the charges, the report said, citing an official from the China National Forest Product Industry Association (CNFPIA)

The official also added that the U.S. is the biggest overseas market for Chinese wood floors, accounting for approximately one third of the total export volume. However, profit rates fall short, to only between 5 to 10 percent, due to the large number of the companies.

Qu Yongxiang, analyst from Guotai Junan Securities, said that if the Chinese companies fail in their appeal, withdrawal from the U.S. market may be the destiny of many of them. In addition, returning home to compete domestically may not be a good solution, as the government tries incessantly to curb the real estate industry.