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TV makers need focus
(China Daily)
Updated: 2004-05-21 09:17

Domestic TV makers should take an active and practical attitude towards the recent US anti-dumping ruling, according to an article in Beijing News. An excerpt follows:

The US International Trade Commission (ITC) voted 5-0 against Chinese TV makers on May 14 and decided to increase anti-dumping duties on more than US$276 million worth of colour TVs from China.

Although disappointed, domestic TV makers should have foreseen the result, given the current climate in the United States.

However, there is a report that points to under-the-table deals between a domestic TV-producing giant and the US appellant, which is said to have led to the unfavourable outcome.

The domestic TV giant involved has become the target of criticism. The criticized producer then made a claim vindicating itself.

Although domestic TV producers could appeal in US court, there is little hope of reversing the ITC ruling. In this circumstance, it is of little meaning to discuss whether there has been betrayal or not.

For domestic TV makers, it is more practical to take an active approach in facing such a result and seeking a way out.

The anti-dumping case has lasted for more than a year. During this period domestic producers should have made efforts to win a better outcome.

Besides trying to win the anti-dumping case, it is an alternative for domestic producers to optimize their industrial structure.

However, domestic TV makers have not tried much in this regard.

China's colour TV industry boasts high market level and develops rapidly. In line with the current productivity, it is estimated that in the next few years there will be a surplus of 35 million units. It is imperative to explore the international market.

In this process, it is inevitable to speed up industrial restructuring by developing high-end products, which is an ultimate way for domestic makers to walk out of the anti-dumping shadow.

It is also advisable to shift some productivity to overseas factories or built joint ventures abroad. For example, TV makers including TCL, Konka and Skyworth have set up production bases in Mexico, which belongs to the North American free trade zone and whose products are immune from US anti-dumping charges.

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