Inadequate guidance amid strong growth underlies anti-dumping cases - academic

Shanghai. November 15. INTERFAX-CHINA - A lack of industry guidance in a period of rapid growth - rather than problems in the global economy - is the underlying reason for the increasing number of anti-dumping cases against China, a professor from a leading Chinese university told Interfax.

Lack of coordination means that when Chinese firms enter new markets others follow fast on their heels, resulting in oversupply and increased risk of dumping allegations, Professor Xue Qiuzhi, associate dean of the School of Management at Shanghai's Fudan University, told Interfax.

Furthermore, the potential for anti-dumping cases is growing as the range of products made inChinaexpands and domestic manufacturers diversify away from labor-intensive industries.

Xue advised industry associations to increase guidance and better inform members of the outlook for their industry abroad. "They should carefully monitor markets in other countries and warn members to cut back on exports if local firms start making significant losses."

Chinahas faced the most anti-dumping cases of any country in the past 20 years, Mei Xinyu, a researcher with the Ministry of Commerce (MOFCOM), told an industry conference inShanghaiearly November.

The allegations do not stem from theU.S.and EU alone, with a growing number this year brought by emerging economies, includingBrazil,Turkey,Mexico,IndiaandArgentina, according to MOFCOM records.

Shenzhen Stock Exchange-listed Zhejiang　Hailiang　Co. Ltd. (Hailiang), China's second largest copper pipe producer, is one of the most recent firms to come under scrutiny in an investigation of red copper pipe by Brazil, Wang Ming, vice president of its parent company Hailiang Group, comfirmed to Interfax　Nov. 15.

"The anti-dumping case was expected. We are responding positively to the investigation and seeking help from law firms," Wang said, adding that the company intends to expand elsewhere now it has established a presence inBrazil.

The U.S. Department of Commerce (DOC) slapped anti-dumping duties on Hailiang in May last year, shrinking the company's share of theU.S.market.

MOFCOM's Mei seesChinaintroducing more incentives to encourage exports, which would further increase exposure to anti-dumping cases. ButChinais also lobbying the EU for recognition as a market economy in the World Trade Organization (WTO), Mei noted.

Achieving this status would ease export restrictions and reduce the risk of dumping, andChina's efforts may be helped by the EU's need to find buyers for its debt, said Xue.